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) jumped as much as 12% today after announcing a major partnership.
So what: GE (NYSE:GE) is partnering with Clean Energy Fuels to build two new ecomagination MicroLNG plants from GE, which will be financed by up to $200 million from GE. The two plants will be up and running by 2015 and are designed to produce 250,000 gallons per day with the capability to expand to 1-million gallons.
Now what: Partnering with GE to expand LNG production is a positive for America's Natural Gas Highway but I don't think it really changes the investment thesis for shares. The plants won't be ready for more than two years and in the mean time the more important factor is the adoption of natural gas as a fuel for large fleets. I like Clean Energy Fuels long term, but today's news doesn't make me any more confident that the company will increase adoption rates near term and return to profitability.