When you’re putting together your investment thesis on natural gas, are you taking into account what the Chinese truckers are saying? Now you can. Piper Jaffray just asked exactly 51 of these guys what they thought about the viability of natural gas as a fuel source in the Chinese trucking industry.
Here are the results of the survey:
Photo: Piper Jaffray
Here’s the deal, though: all of those truckers that don’t see a future for natural gas say it’s either because a) natural gas engines just aren’t powerful enough or b) the necessary infrastructure isn’t there.
With that in mind, here is Piper Jaffray’s bonus stock pick for you: WPRT.
This is why:
This [survey] is positive news for WPRT, since the company’s high pressure direct injection (HPDI) technology offers torque that matches the performance of traditional diesel engines. A lack of fueling infrastructure was the second most oft-cited reason for scepticism, with 44% of truckers mentioning this as a major hurdle. Presumably, if the Chinese government rolls out the infrastructure and WPRT rolls out the engines, many truckers will start migrating toward natural gas trucks.
That takes care of 90 per cent of the naysayers. Could turn into an interesting natural gas play.