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Wednesday, March 26, 2008

Boone Pickens ( CLNE )

Investors thought Clean Energy Fuels was going to have a normal day, and then T Boone Pickens started talking.
On Tuesday, shares of Clean Energy Fuels Corp. (nasdaq: CLNE - news - people ) spiked 9.8%, or $1.16, to $13.03, in late-afternoon trading after oilman Pickens said in a television interview that the natural gas company was one of his top holdings. Pickens is the co-founder and largest shareholder.
"Boone has a pretty good track record," said Ronald Oster of Broadpoint Capital. "People were laughing when he was calling for $100 oil way back when, and this is the alternative energy stock that's he's chosen, so it lends it a lot of credibility." (See: "Will An Oil Mogul See Green?")
There's a lot to like about the Seal Beach, Calif.-based company. Like other alternative energy stocks, natural gas energy is cleaner, cheaper and domestically available. Yet, as Oster pointed out, natural gas fuels stand apart because the technology is better and more available.
Oster continued, saying that there are some large target markets for the industry that are essentially untapped, such as fleet operators which include transit, refuse, airports, and seaports. "The big opportunity for Clean Energy is seaports in Los Angles," Oster said, "and these are very large markets with little penetration so therefore there is significant growth potential."
The other attractive feature fuel savings, which as risen over the last several years as oil prices have increased and natural gas have remained relatively flat. "So as that spread widens," Oster said, "the potential fuel savings increase and the economics for the company and the industry become much more compelling."
Oster added that at the same time the cost of natural gas vehicles has come down. "Taken together, you have a much quicker payback period--estimated to less than two years--for natural gas vehicles."
FYI, this is one of my top long term stocks , buy in around 12 a share and hold on for a wild and profitable stock ride !
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