May 29, 2012
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and consumer-goods editor/analyst Austin Smith discuss topics around the investing world.
In today's edition, Brendan takes a look at a natural gas-focused company with a high percentage of short interest. Clean Energy Fuels, a company that specializes in natural gas stations and infrastructure, has about 25% of its float sold short. It's not particularly surprising, considering Clean Energy Fuels isn't currently making money and has been spending heavily on capital expenditures. Still, Brendan disagrees with the shorts on this one. He thinks Clean Energy, though still a highly speculative bet, has advantages as the first mover in the natural gas infrastructure space, and should benefit from tie-ins with truck stops that fleets are familiar with. Brendan thinks that while natural gas likely won't stay as cheap as it is now, it will remain cheaper than gas and diesel for the foreseeable future, and thus remain a compelling fuel for fleets and trucking companies.
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