Jeffrey Campbell, a former analyst at Suffolk Capital Management for 11 years and current Managing Director at Rosenblatt Securities in charge of Energy, has composed a 60-page memo exclusively for SumZero members on fast-growing demand for natural gas alternatives.
Campbell teamed up with Dr. Walter Kemmsies, Chief Economist at Moffatt & Nichol, one of the world’s leading port and freight infrastructure design companies, to compose the piece. Together they have amassed an impressive array of data, primary sources and expert analysis. Their findings have direct, downstream implications on specific securities which they identify by name.
Excerpt from the report:
"Our work suggests that adoption of natural gas (NG) as a fuel alternative to diesel will accelerate. This alternative NG adoption is wide-reaching and driven by the following five forces:
*The wide and durable price spread between natural gas and oil-based fuels
*“Sweet spot” natural gas truck engines have arrived in 2013
*Freight transportation modalities are interconnected
*Ports are the locus of freight interconnectedness
*Environmental strictures must be met if ports are to grow
Throughout the report--which identifies 50 companies in 16 sectors levered to alternative NG consumption trends--we look at barriers and impediments as critically as we do positive drivers to arrive at forecasts which we believe are both feasible and potentially conservative."
We encourage all investors to dig in.