Opinions
Derek Warren
Westport Innovations
WPT-T
COMMENT
Jun 13, 2014
Stock price when the opinion was issued
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Do they still have an R&D arrangement with Cummings? He believes the very long-standing relationship is still there. The stock has been very disappointing over the last year and even more so after the last 5 years. It has always been “promise without delivery”. Until they are producing a lot of buses powered by technology, going somewhere else will be a more productive use of your money.
It was unfortunate that this had such a fall from grace, but he thinks it got caught up in one of those cult stocks. When it was up in the $40 level, they had to take on roughly 50% of the market share in order to justify their valuation if and when we did see a reasonable adoption of natural gas vehicles. They really don’t have that much of a proprietary technology. He is Short this stock.
On a short-term basis, there is nothing to indicate that anything is going to change on this one. The trend is down. Whatever the fundamental story that you are pinning your hopes on, it had better be a big enough catalyst and something that the market hasn't already discounted.
Natural gas engines for big trucks. As Canadians, we should be very happy and hope they are successful. As investors, it hasn’t been a very fun ride for their shareholders. Made a major acquisition last year. Doesn’t think either of these companies were successful commercially, so putting them together gave it a bit of a bump in share price. Also, when crude comes down, it is less attractive for people to switch to natural gas.
Thinks this is one of the great opportunities in the market right now, even after the run. Invests in US industrial properties, but very large ones. One of the tenants is Amazon (AMZN-Q). The e-commerce trend is something that is here to stay, and companies like this are going to benefit. Trading quite inexpensively. 7.1% yield.