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Is Anyone Looking at Clean Energy Fuels?

In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool analysts Jason Moser and Brendan Mathews take a question from a reader who writes, "Anybody looking at Clean Energy Fuels (NASDAQ: CLNE  ) after the recent drop?"
Clean Energy Fuels have had a tough year to date, with the stock down about 25%. However, Jason sees this as an opportunity to pick up shares of a solid company with great leadership. The move toward alternative energy is poised to continue, and he likes Clean Energy's focus on its core markets of trucking and fleet vehicles. The leadership team of co-founders Andrew Littlefair and T. Boone Pickens can't be underestimated, and it's also worth noting that they both have a healthy amount of skin in the game. It's easy for investors to look at the income statement and get spooked by the lack of profitability today, but as Clean Energy continues to build out America's Natural Gas Highway, the profitability will come, and the company will have built out a great competitive advantage in its infrastructure.

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Read/Post Comments (5) | Recommend This Article (10)

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 April 27, 2014, at 10:26 PM, neptasur wrote:

    burgerscshame: Watching top line growth and increasing gallons sold is pumping the stock? . . . OK.

  • Report this Comment On April 28, 2014, at 12:25 PM, Upside wrote:

    Buyer beware: CLNE is a highly-leveraged, risky stock to own. Raymond James points out that while EBITDA is expected to turn positive in 2014, at just $12 million it would cover less than a third of the $38 million total interest expense the firm expects, and that balance sheet leverage is getting close to the "danger zone." It took the company 17 years to grow into the position of operating some 350 refueling stations serving 30,000 vehicles. Yet this can’t begin to service debt overhang.

    Over a half billion in debt was taken-on to finance the "America's Natural Gas Highway" LNG station fiasco of which only a fraction of stations are up and running due to competitive CNG stations for trucking overtaking the field. This debt begins to come due in 2016 at which point I believe bankruptcy will be inevitable.

  • Report this Comment On April 28, 2014, at 3:27 PM, neptasur wrote:

    Upside: you've been through all that before. I don't understand why you would be so fixated on this stock other than your short interest. If you don't want to own it, don't buy it. There are lots of bad buys out there, why do you keep hyper-focusing on this one?

    You think it's a bad investment. Fine. That's why there's a market: there's always a bull case, and always a bear case. Move on.

  • Report this Comment On April 28, 2014, at 4:06 PM, Upside wrote:

    Oh yes, and we "have been through all that before" as to the CLNE misinformation as well. Today's video provides nothing new in the way of analysis or information, nor did the nearly two-hour hot air session with Andrew Littlefair posted at Motley Fool one week ago today.

    The challenge here is to balance ongoing hype with harsh realities. Motley Fool recommends CLNE and is lending its support to authors and video bloggers to assist in keeping the discussion skewed in favor of this ridiculous company.

    I'm long and short a number of companies but CLNE is an especially rare find: the perfect short down to zero such as happened to ENERQ. These opportunities don't come around very often.

  • Report this Comment On May 01, 2014, at 10:19 PM, neptasur wrote:

    Well Upside, with such a sure thing on your side, and with it being so easy to figure out the folly of LNG, the inevitability of CLNE's demise, etc., why would you be "long and short" any other positions? With your certainty of CLNE going from $9 down to $0 by 2016 that is greater than a 50% return per annum. Are your other positions going to beat that? Why don't you short CLNE your entire net worth?

    When you see such a sure thing, you should surely place a huge bet, right?

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Jason Moser

Jason A. Moser is an analyst for Motley Fool One. He finds stocks that make money and tells the world about them. He's also won a Buzzy. And an Awessie.

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Related Tickers

8/31/2015 1:41 PM
CLNE $5.29 Up +0.12 +2.32%
Clean Energy Fuels CAPS Rating: ****