Seeking Alpha

Westport Innovations falls after offering prices at discount

  • Westport Innovations (WPRT -8.5%) slides hard after pricing its 6M share public offering at $25.39, a 7.5% discount to Wednesday's close.
  • The underwriter option is for 900K shares, and if exercised in full, proceeds to WPRT will be $175.2M. (PR)
Comments (5)
  • The Umpire Strikes Back
    , contributor
    Comments (10) | Send Message
     
    All of the other players in this space have done incredibly well lately; i.e., FSYS, QTWW, Chart Industries, etc. What is their problem? Please cummins, buy them out and put me out of my misery.
    26 Sep 2013, 09:56 AM Reply Like
  • burger guy
    , contributor
    Comments (218) | Send Message
     
    @Umpire. Everything I hear makes me think they are doing fine. Its just that it will be two more years before you should expect profitability. This is based on listening to earnings calls, interviews, etc.

     

    There is tons of demand. They need money for the huge pile of opportunity sitting in front of them. I too own a chunk ( but I've sold many more options than the amount of stock i actually own. )

     

    I am looking at this secondary offering as a low-risk place to sell more options.

     

    I would prefer that they don't seriously entertain any buyout offers for 4 more years. Of course, if they were seriously thinking about it, they probably wouldn't have done this secondary offering.

     

    If you were looking for a short term trading vehicle, i understand your pain. But if you are looking for a longer-term play ( which i am ) I am really not concerned about this secondary offering.
    26 Sep 2013, 10:27 AM Reply Like
  • josephchiam
    , contributor
    Comments (31) | Send Message
     
    The pay back period for their natural gas heavy trucks are just too long, it wouldn't attract buyers. Worst still, difference between CNG and Diesel used to be $1.50, now it is only $1.0. To be safe, get out of this stock wouldn't be a bad idea.
    26 Sep 2013, 09:34 PM Reply Like
  • Dan Greenberg
    , contributor
    Comments (2) | Send Message
     
    I think long-range trucking will take a while to materialize fully; but the opportunities discussed at the last earnings call (Ford F-150 - literally just picking up orders as WPRT is now the partner, heavy off-road and rail) all point to growth opportunities that weren't being discussed a year ago and are more easily executed given higher fuel demand. I'm actually surprised WPRT didn't start going after rail first; maybe the engines needed to evolve first. I bought more and, like burger guy, sold puts on that news and this. That said, I wish they'd done this capital raise by rights (giving current owners a chance to buy stock at a discount to current price) than a market offering.
    27 Sep 2013, 12:33 PM Reply Like
  • Tbray15126
    , contributor
    Comment (1) | Send Message
     
    Why screw the current stock holders? No confidance in their own company? Very disappointed in a company that has a product of great value if they can ever get their act together!
    2 Oct 2013, 03:33 PM Reply Like
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