Underappreciated “Green” Plays

Interesting short article from Forbes today featured one stock I own, Westport Innovations. Westport Innovations was teased by the Alternative Energy Speculator in their “Clean Air Cash-Outs” piece, the original Stock Gumshoe writeup is here. The Forbes article is here, the section on Westport reads:

“Westport Innovations, listed in Toronto, has partnered with enginemaker Cummins (nyse: CMI – news – people ) to develop technology to shoot clean natural gas into diesel truck engines. This could be a reasonable business if states and cities mandate or subsidize natural gas engines.”

The article also features several other unprofitable or barely profitable growth stocks that are small but have growing sales and interesting potential, including metal recycler Metalico, which also looks interesting at first glance. As I’ve noted before, I own shares of this one and I think it has some good potential, but I’d really like to see a substantial pullback before buying more — on very little news, the shares have moved more than 30% in about ten days. The biggest impetus for that move seems to be a deal with Sterling Trucks, but until we see more progress in their plans for a plant for the engines that will be going into the large Kenworth trucks (the plant is planned for later this year or next), or until more firm orders come through on the ports deal or some more large deals for Cummins-Westport engines for fleets of smaller trucks, I think there’s still plenty of room for the shares to fall back to the $3 range. Might be a wild ride on this one.

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