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Westport Fuel Systems Inc T.WPRT

Alternate Symbol(s):  WPRT

Westport Fuel Systems Inc. is a global company focused on engineering, manufacturing, and supplying alternative fuel systems and components for transportation applications. Its segments include Light-Duty, High-Pressure Controls & Systems, Heavy-Duty OEM, Corporate, and HPDI joint venture (JV). Light-Duty segment manufactures liquified petroleum gas (LPG) and compressed natural gas (CNG) fuel storage solutions and supplies fuel storage tanks to the aftermarket, original equipment manufacturer (OEM), and other market segments across a range of brands. High Pressure Controls & Systems segment designs, develops, produces and sells components for transportation and industrial applications. Heavy-Duty OEM segment provides transitional services. The HPDI JV sells systems and components, including LNG HPDI 2.0 fuel system products, to engine OEMs and commercial vehicle OEMs. Its fuel systems and associated components control the pressure and flow of alternative fuels.


TSX:WPRT - Post by User

Bullboard Posts
Comment by contrainvestoron Dec 09, 2009 2:13pm
424 Views
Post# 16569768

RE: RE: RE: So Westport dropped...

RE: RE: RE: So Westport dropped...Bugoff, you make some valid points, any of which could bear out to be true.  However, I think a few counterpoints need to be highlighted.  First, your comment about WPT's stock generally dropping off 20% after they complete financings is not really fair.  The last financing they completed was last summer right before the market collapsed, so that is not a fair comparison.  And every financing before that was before they became a US listed stock and had US brokers running the show, so that is also not a fair comparison.  In terms of your comment that WPT management would not have done this financing if they could foresee a higher offering in the next six months, I think this is not entirely correct.  Companies always need to make a judgement when to do a financing, and you need to balance the risk that you are pricing too low with the risk that the window may not be open in 6 months, which is a real possibility after the run the market has had this year.  So further to my previous post, I think when one considers where this stock was 6 months ago, and the fact that it continues to lose money, they are getting the financing done at a decent price.  I do think you are correct about your timeline for the Nat Gas Act, but that doesn't mean that you will not hear alot of positive vibes coming out of Washington in advance of it actually being passed, which is just as important.  And there are still also all the other catalysts for their business which are not necessarily reliant on the Nat Gas Act.   So my bottomline is that I don't love this financing, but I also see it as a necessary evil at this point in time, and I also think trying to read too much into the future of this business based on this financing alone is probably a little presumptuous.  Cheers.
Bullboard Posts