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An Update On Westport Fuel Systems

Jun. 09, 2020 10:45 AM ETWestport Fuel Systems Inc. (WPRT), WPRT:CA39 Comments


  • The stock fell to a new low with the rest of the market in March.
  • The shares doubled on high volume.
  • A promising Q1 report from the company.
  • Insider buying is a positive sign.
  • Is WPRT a buy again?
  • Looking for more stock ideas like this one? Get them exclusively at Hecht Commodity Report. Get started today »

The last time I wrote about Westport Fuel Systems Inc. (NASDAQ:WPRT) on Seeking Alpha was on October 29, 2019. On that day, WPRT shares were trading at $2.71. I suggested that “November 7 is the next time the company has the potential to surprise the market and ignite a rally.” On November 8, the stock reached its peak at $3.39 per share, where it ran out of steam on the upside.

WPRT engineers, manufactures, and supplies alternative fuel systems and components for use in transportation applications worldwide. The company has a joint venture with Cummins Inc. (CMI), a leading engine manufacturing company.

Like many shares, WPRT fell like a stone during the price carnage in the stock market in March. After closing at $2.37 per share on December 31, 2019, the stock fell to a low of 70 cents on March 23. WPRT shares made an impressive comeback since the March low, but there is still room for the stock to move higher. I had not recommended a long risk position in WPRT shares since the stock was at just above the $1 level in February 2019, but now could be an excellent time to add this stock to your investment radar.

The stock fell to a new low with the rest of the market in March

The high is WPRT shares was at $2.86 on January 13, which was the highest level since mid-November 2019.

Source: Barchart

The chart shows that the selling that hit the stock market in late February through mid-March took the price of WPRT shares to a low of 70 cents. The bottom on March 23 was the lowest in history.

The shares double on high volume

When a stock moves to the upside and higher volume accompanies the rally, it tends to be a technical

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This article was written by

Andrew Hecht profile picture
Weekly commodities commentary and calls, from a Wall Street veteran
Andy Hecht is a sought-after commodity and futures trader, an options expert and analyst. He is the #2 ranked author on Seeking Alpha in both the commodities and precious metals categories. He is also the author of the weekly Hecht Commodity Report on Marketplace - the most comprehensive, deep-dive commodities report available on Seeking Alpha.

Andy spent nearly 35 years on Wall Street, including two decades on the trading desk of Phillip Brothers, which became Salomon Brothers and ultimately part of Citigroup.

Over the past two decades, he has researched, structured and executed some of the largest trades ever made, involving massive quantities of precious metals and bulk commodities.

Andy understands the market in a way many traders can’t imagine. He’s booked vessels, armored cars, and trains to transport and store a broad range of commodities. And he’s worked directly with The United Nations and the legendary trading group Phibro.

Today, Andy remains in close contact with sources around the world and his network of traders.

“I have a vast Rolodex of information in my head… so many bull and bear markets. When something happens, I don’t have to think. I just react. History does tend to repeat itself over and over.”

His friends and mentors include highly regarded energy and precious metals traders, supply line specialists and international shipping companies that give him vast insight into the market.

Andy’s writing and analysis are on many market-based websites including CQG. Andy lectures at colleges and Universities. He also contributes to Traders Magazine. He consults for companies involved in producing and consuming commodities. Andy’s first book How to Make Money with Commodities, published by McGraw-Hill was released in 2013 and has received excellent reviews. Andy held a Series 3 and Series 30 license from the National Futures Association and a collaborator and strategist with hedge funds. Andy is the commodity expert for the website about.com and blogs on his own site dynamiccommodities.com. He is a frequent contributor on Stock News- https://stocknews.com/authors/?author=andrew-hecht

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The author always has positions in commodities markets in futures, options, ETF/ETN products, and commodity equities. These long and short positions tend to change on an intraday basis.

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