Positive Westport Research-Week 43 Results

MONSTER PORTFOLIO 2011


Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 42 11/04/11
$1,506.28 Stock
$1,059.87 Cash
Total $2,566.15

Since Inception: -1.52%

Back out cash inflow and we have a balance of $1,960.65 

Stocks are extremely resilient over the past few days!  I’ve seen a lot of strength in the energy sector with oil reaching $96.87 a barrel.  This is the strength I have been looking for.  The overwhelming need for energy brings Westport Innovations (WPRT) back into mind. 

I know I haven’t covered WPRT in quite some time, but you can’t deny the fact that Westport has been performing extremely well announcing big name deals with Caterpillar, Shell, GM, and Ford.  WPRT has also made some strategic acquisitions and Chesapeake/Clean Energy announced it plans on investing $300 million into LNG refueling infrastructure.  That being said a small $1.33 Billion company like Westport has plenty of room for growth. 

Westport’s recent earnings announcement had a lot of good information indicating that Westport sees strong growth continuing on into 2012.  The CEO David Demers sees 2011 as a tipping point for Westport.  Other positive remarks are as followed

-record revenue for the quarter of $80.2 million
-80% Growth year over year in revenue
-raised guidance on the year to generate $240-$250 million in revenue
-record revenues for the CWI business unit with $49.2 million in sales
-shipments of 85 Westport HD units up from 19
-expectation of more HD units to ship in the 4^th qtr

The list above is just a glimpse of what I researched from Westport’s earnings.  I wish I had the opportunity to ride this big move since I have been out of WPRT since July 6^th when the stock closed at $24.55, but once it took off I never saw a chance to get back in.  Now is the time as the stock is well of its 52 week high of $34.23.  17.67% off the high to be exact!  I will be looking for another chance to buy even more WPRT very soon. 

My last piece of evidence that Westport is going higher is what the CEO David Demers had to say about the investment of LNG infrastructure in regards to Chesapeake, Clean Energy and Shell.  Here is what he had to say “That’s a lot of infrastructure, a lot of fuel and there’s going to have to be a lot of trucks to use up that much fuel.”  That is all I needed to hear.

Have a great night! 

Clay-

“When in doubt buy more!”

(All research was derived from Yahoo Finance and Westport.com)

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)
Westport Innovations (WPRT)