The low price of natural gas and the falling price of WPRT which makes natural gas conversions for trucks and autos has my attention. This stock has come down a long way on some bad news and some competitive pressures, but what the chart is telling me is that the sellers are running dry and the buyers are lined up right under this price level. So, the risk:reward appears favorable. Upside to the $40 level over 3-6 months and downside risk to $25-$23 (October 2011 low). Updates to follow and comments and insights welcome. 7:14AM Friday April 27, 2012
So far, so good. A very strong return in very short time from this setup. Granted, the volatility is high in this stock, so on a volatility-adjusted basis, the return is fair. The economics of natural gas vehicles are terrific, but the infrastructure required to convert our entire US fleet of cars and trucks to natgas would take a concerted Government-supported effort.
Also Caterpillar announced a partnership with them. beta.fool.com/catominor/2012/06/05/westport-caterpillar-natural-gas-taking-over-world/5399/?ticker=WPRT&source=eogyholnk0000001