Clean Energy Fuels shares rise on Cramer comments
BANGALORE (Reuters) - Shares of Clean Energy Fuels Corp (CLNE.O) rose more than 8 percent after Jim Cramer, the host of CNBC's "Mad Money," recommended the stock citing the vehicular natural gas provider's growth potential if California authorizes an alternative fuel statute.
The California Proposition 10, also called California Alternative Fuels Initiative, seeks to use $5 billion in government funds to promote alternative fuel vehicles and renewable energy.
More than $3 billion of these funds would be given as cash payments to people who buy high fuel-economy or alternative fuel vehicles.
Cramer also highlighted a Wall Street Journal report saying that House Speaker Nancy Pelosi and her husband have invested between $50,000 and $100,000 in the company.
Analyst Robert Brown of Craig Hallum said the mention of the Pelosis' investment by Cramer may have focused attention on the company, but the fundamental reason remains the likelihood of gains because of the passage of California fuel initiative.
Analyst Ronald Oster of Broadpoint Securities said the authorization of Proposition 10 could have a "significant impact on the number of natural gas vehicles in the U.S."
"Clean Energy would be a significant beneficiary if this were to pass," Oster said.
Clean Energy Fuels was started by T. Boone Pickens, who has more than 47 percent stake in the company as on July 31.
The company has several fuel stations in California, among 119 spread across several U.S. states and Canada. It also serves 51 other stations which belong to its customers.
Shares of the company were up $1.04 at $15.25 in afternoon trade on Nasdaq. Volumes almost tripled over the 50-day moving average volume to about 1.6 million.
(Editing by Gopakumar Warrier)
