FuelCell Energy Inc (NASDAQ:FCEL) Preferred Stock Pricing Rattles Investors

FuelCell Energy Inc (NASDAQ:FCEL)

FuelCell Energy Inc (NASDAQ:FCEL) slumped 3.75% after announcing the pricing of a $33.5 million convertible preferred stock transaction. Investors sent the stock lower even after the company announced a new 20 megawatt fuel cell project in South Korea.

FuelCell Stock Performance

The sell-off is already arousing concerns as to whether it will mark the end of a bullish run that began in May. FuelCell Energy Inc (NASDAQ:FCEL) is currently trading in a $1.45 – $1.63 trading range with a 52-week low of $0.80 a share.

FuelCell Energy Inc. (NASDAQ:FCEL) has struggled to rise above the $1.55 mark which acts as a key resistance level. The stock closing above the $1.63 could fuel a run to the $2.00 a share mark, which appears to be another resistance level.

FuelCell Energy Inc (NASDAQ:FCEL)
One month stock price chart for FCEL.

However, investor’s sentiments on the stock is waning after the pricing of the new stock offering. A point of concern is that the offering could plummet the company into more debt.

FuelCell Energy Inc (NASDAQ:FCEL) plans to offer 33,500 shares of convertible stock with a stated face value of $1,000 a share. The shares carry a 0.0% dividend and can be converted into common shares at $1.84 per common share. Each preferred share is being sold at $895.52 for gross proceeds of $30.0 million.

The company plans to use net proceeds from the offering for working capital purposes as well as financing of a number projects already underway. The offering should close on or about September 8, 2017.

20 Megawatt Fuel Cell Project

Part of the funds from the proposed offering are to be used to finance 20-megawatt fuel cell project that FuelCell Energy Inc (NASDAQ:FCEL) is working on, in conjunction with Korea Southern Power Company. Works on the project should begin before the end of the year with the facility poised to be fully operational next year.

The SureSource 3000 power plant is to produce clean electricity and thermal energy for use in district heating systems. Hanyang Industrial Development Company is to provide the engineering procurement and construction services for the project.

“This is the first fuel cell project for KOSPO and we are pleased that the value proposition of our SureSource solutions meets the exacting needs of KOSPO, one of Korea’s largest utilities. Our multi megawatt, scalable easy-to-site clean energy solutions are well-suited for utility-scale applications such as this project,” said FuelCell Energy Inc (NASDAQ:FCEL) CEO, Chip Bottone.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms

MMEX Resources Corp (OTCMKTS:MMEX) Secures Construction Permit

MMEX Resources Corp (OTCMKTS:MMEX)

Shares of MMEX Resources Corp (OTCMKTS:MMEX) traded lower after the company announced it had received permits for the construction of a 10,000 barrel per day crude distillation facility in Texas. The stock was down by 19.32% in Friday’s trading session to end the week at $0.0167 a share.

Stock Performance

MMEX Resources Corp (OTCMKTS:MMEX) continues to trade in a downtrend after retreating from this year’s highs of $0.06 per share. The stock is currently trading in a $0.01 – $0.02 trading range having struggled to rise above $0.03 a share mark, a key resistance level.

The development stage company specializes in the exploration, extraction, refining, and distribution of oil, gas, and associated petroleum products. It appears the stock’s sentiments on Wall Street have taken a hit on oil prices struggling to rise above the $50 a barrel mark as uncertainty continues to grip the energy industry.

MMEX Resources Corp (OTCMKTS:MMEX)
One month stock price chart for MMEX

Investment Drive

Amidst the uncertainty in the industry, MMEX Resources Corp (OTCMKTS:MMEX) continues to invest in projects it believes will have a positive impact on its long term growth prospects. In July, the company confirmed the acquisition of 126 acres of land in Pecos County, where it intends to construct the 10,000 barrel-per-day (bpd) crude distillation facility.

MMEX Resources Corp (OTCMKTS:MMEX) plans to acquire an adjacent 350 acres of land where it will construct its Phase II 50,000 bpd refinery. The refinery site is strategically located, which should allow the company to take advantage of the existing railway as well as roadway and pipeline infrastructure.

“The closing of our Phase I land site is a major milestone for the Pecos County refinery project and a catalyst for significant milestones to come […].We’re eager to begin construction on this exciting project and start bringing new jobs to the region,” said CEO Jack W. Hanks.

Construction of the crude distillation facility is to start anytime and slated for completion after 15 months. The company expects the facility to have a significant economic impact on Pecos County during the construction phase and when it becomes fully operational.

The new facility marks yet another milestone in MMEX Resources Corp (OTCMKTS:MMEX) push to reinvigorate its growth prospects. In June, the company reached an agreement that paved way for it to gain access to $3 million in new financing. Part of the funds is to be used to pay down the company’s debt, cater for the construction of the new facility while also financing working capital operations.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $MMEX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Northern Dynasty Minerals Ltd (NYSEMKT:NAK) Seeking Partners

Northern Dynasty Minerals Ltd (NYSEMKT:NAK)

Northern Dynasty Minerals Ltd (NYSEMKT:NAK) continues to elicit renewed investor’s interest in the wake of the Trump Administration’s lifting a veto on the development of the Pebble Mine. The stock was up by 10.88% in Tuesday’s trading session as the Environment Protection Agency rolled back restrictions on the development of the underdeveloped copper and gold mine.

Pebble Mine Development

Hopes that the Trump administration will do away with all the restrictions imposed by the Obama administration on the Pebble Mine may continue fueling bullish momentum on the stock. The stock faces immediate resistance at the $1.80 a share mark above which it could rise to May highs of $2.40 a share.

During the Obama administration, Northern Dynasty Minerals Ltd (NYSEMKT:NAK) lost a good chunk of its market value after losing two Pebble Mine partners, Anglo American and Rio. The company has already started to look for new partners in the wake of the EPA initiating the process to withdraw a Proposed Determination that prevented the development of the Pebble Mine Project.

Northern Dynasty Minerals Ltd (NYSEMKT:NAK) has also taken a number of key steps that it hopes will help reduce opposition from native tribes and advocacy groups for the development of the massive gold and copper mine. The steps are designed to reduce the potential environmental impact of the project while also giving voice to the opposition.

“We believe the project design we are preparing to advance into permitting, as well as the social and stakeholder programs and commitments we are building around our project, will address many of the priorities and concerns we have heard from stakeholders in Alaska,” said Northern Dynasty Minerals Ltd (NYSEMKT:NAK) President & CEO Ron Thiessen.

Pebble Mine Development Impact

The chief executive officer remains confident that they will have a partner by the end of the 3rd quarter. Fundamentally, Northern Dynasty Minerals Ltd (NYSEMKT:NAK) stands to benefit a great deal from being given the go ahead to commence mining operations at Pebble Mine.

There is also a possibility of the company being acquired by another company given the Pebble Mine potential. However, the Northern Dynasty Minerals Ltd (NYSEMKT:NAK) management has, on many occasions, insisted on pursuing partnerships instead of buyouts.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NAK and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Is Westport Fuel Systems Inc (USA) (NASDAQ:WPRT) Topping Out?

Westport Fuel Systems Inc (USA) (NASDAQ:WPRT)

The Q2 2017 financial release by Westport Fuel Systems Inc (USA) (NASDAQ:WPRT) supported a two-day run that moderated in the last half of today’s trading day. On Monday WPRT stock ended trading around $1.90. On Tuesday the stock gapped higher to open and ended at $2.20. WPRT shares gapped up to open again Wednesday morning and quickly hit $2.39 when sellers stepped in and proceeded to take the stock down throughout the day. WPRT stock closed at $2.23. Volume was about 3.5 times the daily average.

Westport Fuel Stock Chart:

Westport Fuel Systems Inc (USA) (NASDAQ:WPRT)
One month stock price chart for WPRT

Westport Fuel Systems Inc (USA) (NASDAQ:WPRT) is a transportation green technology company. Westport develops, manufactures, and markets clean-burning fuel systems and components. The company wants to change the way the world moves in a manner that creates value for their employees, customers, investors, and benefits the environment. Westport operates globally in more than 70 countries.

Westport Fuel Systems Inc (USA) (NASDAQ:WPRT) reported a Q2 2017 adjusted net loss of (-$0.12) per share from continuing operations. That loss was less than the street’s expected (-$0.15) loss and is likely what sent WPRT shares higher. Adjusted net income was reported at $0.04 per share. Total net loss from continuing operations amounted to $13.3 million. The reported net income for second-quarter 2016 was $3.4 million. Westport Fuel Systems posted Q2 consolidated revenues of $62.1 million, up 66.9% for the same period of the previous year and $7.1 million more than the consensus estimate. Growth was primarily driven by the addition of Fuel Systems’ revenues. Q2 consolidated gross margin increased to $15.8 million (25.4% of sales) from $8.2 million (21.9% of sales) recorded in Q2 of 2016. The improvement in gross margin came on the back of the Fuel Systems’ merger. Consolidated adjusted EBITDA amounted to a negative (-$5.3) million, compared with a negative (-$11.5) million in Q2 2016.

Westport Fuel Systems Inc (USA) (NASDAQ:WPRT) is up over 97% YTD, and up over 33% for the year.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $WPRT and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Atacama Resources International Inc (OTCMKTS:ACRL) Rallies

Atacama Resources International Inc (OTCMKTS:ACRL)

Atacama Resources International Inc (OTCMKTS:ACRL) rallied 30.43% in Tuesday’s trading session as investors reacted to the outcome of the company’s annual general meeting and prepayment of a convertible promissory note. The meeting held on August 11, 2017, saw the company detail its revenue projections for the year as well as provide corporate highlights.

Atacama Resources International Inc (OTCMKTS:ACRL)
One month stock price chart for ACRL

Tuesday’s rally did little to reverse a strong downward trend that has pushed the stock to this year’s low. The stock has underperformed the overall industry after dropping from March highs of $0.45 a share.

Atacama Resources International Inc. (OTCMKTS:ACRL) bills itself as a consulting company, focused on providing services to companies and individuals participating in the mining industry. The company also manages actual mining operations. Its 40 mining claims include a 1,680-acre mine in the Kirkland area of Ontario. In addition, the company owns and sells smartphone applications.

 Smartphone Apps Push

During the annual general meeting, Atacama Resources International Inc (OTCMKTS:ACRL) detailed a new smartphone app slated for release early next year. Dubbed SeniorGuard, the new app should strengthen the company’s suite of safety-driven mobile applications front that is currently made up of the Good2Drive app.

Good2Drive mobile app is designed to test driver’s cognitive alertness before they get behind the wheel in cars. The app monitors impairment to driver’s judgment which may be caused by alcohol, medical condition prescription, and illicit drugs. The mobile app is currently available in iTunes and Google Play stores.

Stock Promotion Concerns

Due to the high volume of shares traded, Atacama Resources International Inc. (OTCMKTS:ACRL) says it recently carried out an internal investigation to ensure that all the company’s officials and directors comply with SEC and FINRA rules. The audit came after the company was informed about possible illegal stock promotion activities.

Atacama Resources International Inc (OTCMKTS:ACRL) has since refuted claims of stock promotion activities by reiterating it had no involvement or knowledge of any material posted with regards to the same.

In addition, the company says it prepaid in cash a convertible promissory note late last month, which will now be converted into shares this month.

“By recent board action, the company policy will be, if at all possible, to prepay convertible notes prior to any conversion to ACRL shares. ACRL was not required to convert several million shares as the result of the prepayment,” Atacama Resources International Inc (OTCMKTS:ACRL) in a statement.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ACRL and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) Tanks As Q2 Net Loss Widens

SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF)

Shares of SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) shed 17.81% as investors reacted to a wider than expected second quarter net loss. The precious metal company says it generated a net loss of (-$0.6) million for the three months ended June 30, 2016, compared to a net income of $0.2 million for the corresponding period last year.

SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF)
One month SGSVF stock chart

Net loss for the first six months of the year came in at ($2) million compared to a net loss of ($0.4) million for the corresponding period last year.

SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) has been on an impressive run having rallied from lows of $0.70 a share as of the start of the year to highs of $1.90 a share this month. Tuesday sell off threatens to bring to an end the bullish run that has seen the stock trade in a tight $1.45-$1.77 a share trading range. The stock should find immediate support at the $1.34 mark below which it could tank to $1.16 a share.

The precious metal company engages in the business of acquiring, exploring and development of mineral resources across Canada. The company owns 100% interest in the Back River Gold Project located in Southwestern Nunavut Canada as well as the silver royalty on the Hackett River.

SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) attributes the wider than expected second quarter net loss to lower sales of Pure Gold Mining Inc. this year compared to last year. The company ended the second quarter with cash and cash equivalent of $36.6 million.

Mining Activities

Despite the massive loss the company’s chief executive officer, Bruce McLeod says they achieved a lot as they continued to advance the Back River project through basic engineering and optimization studies.

During the quarter, the company completed its first phase exploration drilling program at the Goose property.

“In addition, the exploration success we had at the Goose Project this spring has provided opportunities to extend the mine life of the project. In particular, grades at the Vault Zone are more than double the average grade of the Back River resource and could offer opportunities to positively impact Project economics,” said Mr. McLeod.

Following the successful first phase exploration program, SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) intends to expand its summer drilling program, focus this time being on the Vault zone.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SGSVF and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Is NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) A Buy After 500% Rally?

NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF)

Shares of NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) were up by 26.05% days after the mining company announced the acquisition of further interests in Karratha region, Western Australia. The company with its Australian subsidiary has signed an option agreement to acquire certain tenements.

NOVO Resources Stock Chart:

NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF)
One month stock price chart for NSRPF

Novo Resources Bullish Run

NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) has been on an impressive run since the start of the year, its shares having rallied by more than 400%. The bullish run that started in June shows no signs of slowing down as the stock continues to trade at the upper end of its $2.94-$3.70 trading range. The stock is also closing in on its 52-week high of $3.70

The mining company with its subsidiaries evaluates acquires and explores gold properties in Canada, Australia, and the United States. Its lead project is the Pilbara, Paleoplacer project in Western Australia. Build on a significant land project covering 10,000 sq. Km. Novo Resources also owns 100% interest in the 2 sq. km in the Tuscarora Au-Ag vein district Nevada.

Mining Operations

The mining project where the company has acquired further interests consists of seven prospecting licenses, five exploration licenses, and six prospecting license application. NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) is to make an option fee payment of 500,000 Novo common shares as part of the option agreement signed with the Optionor.

Novo will have 12 months from the signing of the agreement to decide whether to exercise its Option and purchase the Pipeline project outright. The Optionor is to retain non-gold rights to the Pipeline Project as well as 1% of gross royalty on production from the project.

NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) has already announced its first bulk sample from the Karratha Gold project. The company has since announced plans to work with Nagrom to generate a refined protocol for sampling and analyzing the gold mineralization in the project. There are also plans to undertake a full systematic trench bulk sampling at Purdy’s reward, which is part of Karratha gold project in West Pilbara.

“Not only was the grade of this bulk sample encouraging, the Steinert XSS T sorting machine proved highly efficient at picking rock with coarse gold particles. We see value in its use for helping determine grade of this very unusual mineralization as well as potential use for future commercial applications,” said Dr. Quinton Hennigh, Chairman, President, and Director of NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF).

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NSRPF and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Abraxas Petroleum Corp. (NASDAQ:AXAS) Gets Some Relief from Sell-Off

Abraxas Petroleum Corp. (NASDAQ:AXAS)

Abraxas Petroleum Corp. (NASDAQ:AXAS) stock is up over 9% in early trading after shares fell yesterday following the company’s Q2 earnings announcement. On Tuesday, Abraxas reported revenues of $13.2 million – $3.5 million below expectations. Q2 net income was $7.2 million, a positive result after the company posted a Q2 loss in 2016. Abraxas, based in San Antonio, TX, said it had per share profit of $0.04 cents. Earnings, adjusted for non-recurring gains, came to $0.01 cent per share. The financial results failed to meet analyst expectations which had earnings coming in at $.02.

Abraxas stock chart:

Abraxas Petroleum Corp. (NASDAQ:AXAS)
One month Abraxas stock price chart

Despite the adoption by Abraxas Petroleum Corp. (NASDAQ:AXAS) of a controlled flowback protocol on the recent Caprito completions, current production is averaging over 9,000 Boepd. As these two wells ramp up to expected levels, Abraxas expects to meet or exceed the Company’s originally forecasted 2017 exit rate of 9,500 Boepd in the coming weeks. Abraxas is adjusting the Company’s target exit rate to approximately 10,750 Boepd. Abraxas is adjusting guidance for 2017 to account for the Company’s current planned completion schedule and well performance.

Bob Watson, President and CEO of Abraxas, commented, “As expected, second quarter 2017 volumes dipped due to well shut-ins in the Bakken from offsetting completions. Unfortunately, we were also plagued by gas curtailments in South Texas and in the Permian, which negatively impacted the quarter. With the past now behind us, we expect to approach our anticipated year-end exit rate in the next few weeks. This bodes for a much stronger than anticipated second half 2017 production outlook as evidenced by our increased anticipated exit rate to 10,750 Boepd.

At the end of 2016, Abraxas Petroleum Corp. (NASDAQ:AXAS) stock was trading near $3.00 but yesterday shares closed at $1.61. YTD, AXAS stock is down over 37% but up almost 43% for the year. Analysts have given AXAS stock a consensus price target of $2.68.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $AXAS and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Enphase Energy Inc (NASDAQ:ENPH) Stock Rallies on CEO Resignation

Enphase Energy Inc (NASDAQ:ENPH)

Enphase Energy Inc (NASDAQ:ENPH) stock rallied 4.27% after the company announced the resignation of current CEO, Paul Nahi. The rally also came after the company reported a smaller than expected second quarter net loss.

Enphase stock price chart:

Enphase Energy Inc (NASDAQ:ENPH)
One month Enphase stock price chart

Enphase Stock Performance

Enphase Energy Inc (NASDAQ:ENPH) shares face a lot of uncertainty in the market even after the brief rally. Enphase stock had initially powered to highs of $1.10 a share, before retreating to $0.928 a share. A bearish tone appears to be building on the stock as investors continue to react to Q2 net loss and imminent management changes.

The company bills itself as a leading provider of energy management solutions. Enphase Energy Inc (NASDAQ:ENPH) designs, develops and manufactures micro inverter systems for the solar photovoltaic industry. The global energy technology company also delivers smart easy to use solutions for connecting solar generation storage management solutions on one intelligent platform.

Enphase Q2 Earnings Report

Enphase Energy Inc (NASDAQ:ENPH) says it generated total revenues of $74.7 million for the three months ended June 30, 2017, representing a 36% year over year increase. Gross margin in the quarter dropped to 18.1% from 18.9% as of last year. GAAP operating expense dropped 22% to $22.8 million.

Net loss for the quarter dropped to (-$12.1) million from (-$16.7) million reported in Q2 2016. Enphase energy generated a total of $1 million in cash in the quarter to exit with a total cash balance of $31 million.

“We believe the combination of operating expense reduction, supply chain optimization and the transition to our sixth-generation IQ Microinverter System will enable us to achieve non-GAAP operating income profitability by the fourth quarter of 2017,” said Bert Garcia, CFO of Enphase Energy Inc (NASDAQ:ENPH).

For the third quarter, Enphase Energy says it expects revenues of between $72 million and $80 million which should lead to a gross margin of between 18% and 21%.

CEO Appointment

Enphase Energy Inc (NASDAQ:ENPH) has also confirmed that it has started the process of recruiting a new CEO following the resignation of Mr. Nahi.

“It has been an enormous privilege to lead Enphase since inception and through its growth to become a leading global energy technology company,” said Paul Nahi

Following Mr. Nahi resignation, Enphase Energy Inc (NASDAQ:ENPH) board of directors has appointed Bert Garcia, CFO, and Badri Kothandaraman, COO to oversee and provide leadership pending appointment of new CEO probably before August 31, 2017.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ENPH and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Clean Energy Fuels Corp (NASDAQ:CLNE) Q2 Earnings Disappoint

Clean Energy Fuels Corp (NASDAQ:CLNE)

Clean Energy Fuels Corp (NASDAQ:CLNE) has dropped 20%, in eight days, from $3.00 to less than $2.40 on an inter-day basis. The market sold off the clean energy stock after it reported Q2 earnings in which revenue fell over 25% from the same quarter a year ago. Volumes were heavy during the period and, on Friday, the number of CLNE shares traded was more than double the 30-day, daily average.

Clean Energy Fuels Corp (NASDAQ:CLNE)
One month daily candlebar chart for CLNE

Clean Energy Fuels Corp (NASDAQ:CLNE) provides natural gas fuel for use in North America’s transportation industry. The company builds and operates clean natural gas (CNG) and liquid natural gas (LNG) vehicle fueling stations and also manufactures CNG and LNG equipment and technologies. Clean Energy is the leading provider of CNG and LNG vehicle fuel in the United States. Clean Energy also sells Redeem™ RNG fuel and claims that it is the cleanest transportation fuel commercially available, reducing greenhouse gas emissions by up to 70%.

The Newport Beach, CA-based company delivered 88.4 million gallons in Q2 2017, a 6.6% increase from 82.9 million gallons delivered in the same period in 2016. Q2 2017 revenue was $81.0 million, a 25.0% decrease from the reported Q2 2016 revenues of $108.0 million. Clean Energy claimed the decrease was primarily due to a lower effective price per gallon due to the company’s sale of certain assets related to the upstream production portion of its RNG business. Like the rest of the industry, the company’s revenue was hit by the expiration of the U.S. federal excise tax credits for alternative fuels (“VETC”) on December 31, 2016.

Andrew J. Littlefair, President and Chief Executive Officer of Clean Energy Fuels Corp (NASDAQ:CLNE), stated: “Continued volume growth and positive adjusted EBITDA made for a favorable second quarter with what we believe is positive momentum moving forward. Particularly of note were several significant customer wins with our Redeem™ renewable natural gas, demonstrating how the transportation industry continues to embrace the cleanest fuel available.”

In 2012, Clean Energy Fuels Corp (NASDAQ:CLNE) was trading over $24. Since then CLNE shares have been on a continual slide and have a 52-week low of $2.18. YTD CLNE shares are down over 15%, and are down over 13% for the year. CLNE shareholders have experienced losses every year since 2012 when the company posted a loss of (-$1.16), however the smallest loss was last year at (-$0.10). Sales have been lackluster. In 2015 the company reported $384.3 million but that figure increased to just $402.7 in 2016.

Two investment firms follow Clean Energy Fuels Corp (NASDAQ:CLNE). One rates CLNE shares as a “Strong Buy”, while the other rates the shares as a “Hold”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $CLNE and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.