This Day On The Street
Continue to site
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

2 Stocks That Could Soar if Gas Reaches $4 a Gallon

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Clean Energy Fuels (CLNE - Get Report)

This company, formerly known as Pickens Fuels, was founded by oil legend T. Boone Pickens. Though he made his fortune in crude oil, he's become much more bullish on natural gas in recent years, especially as a transportation fuel source. He currently controls about 4.7 million shares (or 7%) of the company, so he's got an obvious agenda. And his vision has not yet delivered the shareholder returns he had hoped. Even though Clean Energy Fuels is the largest operator of natural gas filling stations (with almost 250 at last count), bottom-line results haven't added up. The company has never generated positive free cash flow and has had to repeatedly sell more stock to raise capital in order to extend the filling station network.

Yet that network of filling stations may have finally reached critical mass. The company is expected to book quarterly GAAP profits by the middle of next year. Fuel sales shot up 60% in 2010 (to $212 million) and should top $350 million by next year. At a $500 million run rate, the company thinks it would generate solid levels of profitability.

Of course, more natural-gas-fueled cars on the road would instantly change the company's trajectory. And help may be on the way. Honda (HMC) already sells a natural-gas-powered Civic; GM (GM) is launching a line of pick-up trucks powered by CNG (compressed natural gas), and Ford's (F) Transit Connect minivan will soon be available in a similar configuration. European automakers, including Fiat, already sell natural-gas-powered cars in their home region.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
CLNE $8.07 0.00%
FSYS $11.03 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs