Thursday, May 10, 2012

Seems Natural to Speculate in WPRT

Generally CCI's investment style is conservatively biased towards grinding out modest, higher probability gains.
However, every portfolio can probably benefit from having a few speculative positions.  I've taken a small, speculative   position in Westport Innovations. (WPRT).

WPRT is a leader in the field of Natural Gas based engines.  In general, I'm thinking the upcoming political season will generate some press about this space, and could be a catalyst to drive a significant increase in the stock price.  On the other hand, there are many issues with this (and any) smaller company which makes this a very speculative investment.

My overall rational and timing about taking this position is described in a Seeking Alpha article here. 

FYI, since the article was drafted a few days ago, the stock has fallen a few dollars. So now it is obviously  even a better buy....lol!    More seriously, as discussed in the article, this weeks pull back makes it seem like a good thing that options were used to enter the position, thereby lowering my cost basis.

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