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Microcap & Penny Stocks : Quantum Fuel Sys (NAS.GM: QTWW)
QTWW 0.08010.0%Apr 8 5:00 PM EST

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From: Hawkmoon12/12/2014 9:39:42 AM
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The price action on the stock is definitely ugly.. But is it UNWARRANTED?

Is CNG really no longer an option for trucking companies because of low oil prices? Or is it, in part, responsible for undermining the price of oil?

This article says that the BTU equivalent price for NG to Oil is about $23/bbl..

Which suggests that, while maybe some truck companies may hesitate until they see where the economic actually are at the pump, but the longer term trend suggests that CNG is really undermining the oil markets and remains an attractive alternative fuel..
We think one of the biggest catalysts for the oil-price collapse is the disturbing price premium it commands over natural gas when the two are compared on an "energy equivalent" basis. Wet and dry natural gas production has risen 34 percent since 2007, capping natural gas prices, which drifted continually lower. When you take the natural gas price and run some numbers on it to make an apples-to-apples comparison to crude oil, it's "BTU-equivalent" price in barrels is just $23.

cnbc.com

I welcome other opinions.

Hawk
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