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CUI Global gets U.S. purchase orders and more on gas +3

08:32 20-Feb-18


CUI Global has announced the receipt of four purchase orders "in as many months" for its GasPTi devices.  The devices are being used to optimize the efficiency of gas-fired compressor turbines in the northeastern United States.

My guess is that this doesn't have a huge immediate fundamental impact, given the lack of detail on volume and margins.  I spent some time trying to look into what or with whom the use case might be, but there are just too many possibilities.  I've spent even more time pondering the gas market as a whole, particularly in light of General Electric's latest divestiture.  I reached out to a contact in conjunction with that, but the opinion I got back was that GE's problems are largely of its own making and that pressure on gas generation is limited to the efficiency of utility-scale planning and does not extend down to the corporate level yet. 

Subscribers might also want to know that I'll be looking at the earnings report from Macquarie Infrastructure Corp over the next two days in order to gain more data points.  More market turbulence could put MIC pricing relative to an imminent dividend at levels that are finally worthy of an ephemeral investment, but there are tax and built-in dilution factors to be weighed against the almost 9% yield.  I will only issue a post-earnings note on MIC if clarity and the quality of the opportunity improve, but questions are always welcome.