Barr out and natural gas notes -2

11:33 15-Dec-20

As further evidence of investors being way out over their skis on green energy, I'll document today's 15% rise in VUZI to $5.68, aided by the 25%+ rebate rate.  What does Vuzix have to do with green energy?  Nothing other than potentially reducing travel via remote maintenance and training, and vaccines mean that companies will soon be able to make freer remote vs travel decisions.  However, today's jump coincides with a press release that Plug Power (a hydrogen fuel-cell provider) used Vuzix products to alleviate such constraints.  I'll still see and what Vuzix has to say tomorrow, but I'll be more interested in what happens with Walmart's pilot project.  In the meantime, I suggest investors re-read this note.

There are two news items that I want to note quickly this morning.  The first is the resignation of Attorney Genera William Barr, which could be indicative of further Trump antics now that the electoral college has certified the Bide n win.  I continue to hold VIRT in order to benefit from such eventualities.

The second is a press release from Clean Energy saying that it has inked deals for over 58M gallons of RNG fuel.  Of course, it paints this in glowing terms, but I am unimpressed.  The only date given is for one of the contracts to be completed by mid-2021 and the company delivered 143M gallons last year.  To me this looks like evidence that natural gas momentum in the transportation sector is slowing instead of growing, as I expected.  I doubt the market will see it that way just yet, but any lingering WPRT investors might take note, even though Westport is mostly internationally focused.  The situation is similarly cautionary for Xebec, whose stocks are currently overpriced in my eyes.  However, both it and Golar have more opportunity to benefit from electricity generation from natural gas.  Even the Fed is now getting on board with a greener, all electric economy and I see investors as way out over their skis.  I think the latter are not fully appreciating the bridge role that the natural gas has to play in that transition as it shifts from a fossil fuel to an extra revenue stream for the agriculture and waste industries.