The Westport Opportunity With Nat-Gas Trucks (WPRT)

Westport Innovations Inc. (NASDAQ: WPRT) has been moving higher this week on hopes and some more warming up to the idea that compressed natural gas could be used to power the U.S. trucking fleet.  While that may be a decade-long path at best, the move speaks for itself.  The idea that Westport benefits from a move from diesel to CNG is certainly nothing new, but it looks like this effort may finally be closer to coming about. 

Last Friday shares were roughly at $35.00.  Thursday was the first trading day this week that the stock did not rise, but the 1% drop was still at $38.53 and that makes for a gain of almost 10% so far for the week.  T. Boone Pickens was commenting on the move to natural gas for trucks this morning and said that one of the big trucking companies would be unrolling something new and big next week.  Whether that includes Westport or whether or not that is a rival is not yet known. 

Westport loses money, but analysts see revenues of $232.53 million in Fiscal Year March-2012 and $346.96 million in Fiscal Year March-2013. The price of $38.53 has already priced in a lot of good news ahead because the 52-week trading range is $14.25 to $40.54.