This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Why George Soros Is Buying Westport Innovations

Stocks in this article: WPRTBRK.BCLNEFSYSLRVOLVY

In April, Westport announced a deal with Delphi Automotive Systems to supply its HD natural gas fuel injectors to the global auto supplier spun off from General Motors last year.

It's the Westport patented technology for the heavy duty truck market that sets it apart from peers in the natural gas vehicle stock space, according to analysts who cover the sector. And it's important to remember that Westport's technology for heavy duty trucks is more proprietary than other natural gas conversion kits, from players like Clean Energy Fuels and Italian company Landi Renzo (LR), said Shawn Severson, analyst at ThinkEquity.

"These companies don't compete with Westport in heavy duty trucks. Westport has that game wrapped up," the ThinkEquity analyst said.

Nevertheless, the critical question is, When this game that the analyst refers to will actually begin?

The natural gas vehicle stocks received a big -- albeit "iffy" -- endorsement, when the climate bill recently introduced by the Senate included a provision from the T. Boone Pickens-supported Natural Gas Act to double the size of the current federal subsidy for trucking fleet operators, including the long-haul truckers and shipping companies, to purchase natural gas powered vehicles.

Stocks like Clean Energy Fuels spiked on the introduction of the climate bill. Yet given the uncertain fate of the climate bill -- some analysts believe it may never see the light of "legislative passage" day in 2010 -- these natural gas vehicle stocks remain extremely volatile.


A telling example of the difficulty in timing entry into a stock like Westport is the fact that Jefferies recently downgraded Westport to market perform from outperform, based on the fact that the Jefferies analyst believes it might take until 2011 or 2012 until the federal climate mandate passes.

Ultimately, it's still a moving target as to how long it will take for the long-term natural gas story to play out in terms of profitability returned to shareholders.

In fact, now that the Senate has again delayed introduction of the bill, some analysts believe that long haul trucking companies and other likely purchasers of natural-gas trucks will delay capital spending until the federal government makes the doubling of the natural-gas vehicle subsidy law.

The Jefferies analyst is expecting a breakeven year in 2011. However, the price target of $20 to which Jefferies lowered Westport is still well above its current share price of $15.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs