Clean Energy Fuels Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Clean Energy Fuels (Nasdaq: CLNE  ) , which provides natural gas to vehicle fleets, jumped as much as 12% on heavier-than-average volume today.

So what: The company said today that it has signed a seven-year agreement with UPS (NYSE: UPS  ) to provide fuel for its new fleet of 48 liquefied natural gas trucks in Las Vegas. That's good news for sure, but hardly the kind of thing that you'd expect to make the stock pop as much as it has. Meanwhile, optionMONSTER suggested in a note today that short-sellers may have exhausted themselves and some may be covering after pushing short interest on the stock to 20% at the end of last month.

Now what: The story from optionMONSTER certainly seems plausible, but it's not the kind of "news" that makes me want to chase down a stock. Clean Energy Fuels is a growing company in a still-developing market for vehicles running on alternative fuels. Investors' main concern at this poi nt should be whether the company can continue its growth and get to solid profitability, not trying to read the minds of short-sellers.

Want to keep up to date on Clean Energy Fuels? Add it to your watchlist.

                

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFoolor on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.


Read/Post Comments (1) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 23, 2011, at 7:29 PM, revjimbo wrote:

    So what? So what? Open your eyes man. Have you read the world news lately? Natural gas for transportation is imminent and will help save this country. CLNE is the "Standard Oil" of this inevitable new era of energy independence with or without subsidies. Any fool can see this is a long-term lock.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1445912, ~/Articles/ArticleHandler.aspx, 8/29/2014 4:15:22 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement