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Tuesday, July 12, 2011

Clean Energy Fuels Corp. -- an update

A week and a half ago, I named Clean Energy Fuels Corp. (symbol CLNE) the stock of the month for July on the basis of a megatrend that ought to be very kind to the company, namely, the growth of natural gas as a fuel for vehicles in the USA. Last night, Chesapeake Energy announced that it was investing $150 million with Clean Energy that will be used to help CLNE buld out a system of highway filling stations for natural gas powered trucks. Chesapeake, of course, is one of the biggest producers of natural gas in the USA. Obviously, the more cars and trucks that use natural gas, the better it will be for Chesapeake's bottom line. The truth is that is will also be extremely helpful to the economy in general as any regular reader of this blog knows. The investment is a strong signal that Clean Energy will be the beneficiary of the trend to nat gas. So far this morning, the stock is up $1.80 which is just under 14%.

I could not fault anyone who wants to take profits here. Nevertheless, I strongly believe that the future will bring much more growth to CLNE and that this remains a good long term investment, especially in the current market environment.


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