Thursday, August 28, 2014

Seeking Alpha: Chart Industries Has Deflated On A Slower LNG Buildout

It's been a rough year for companies tied to the LNG infrastructure market, as once-rich valuations continue to smack into the reality that development of the U.S. market remains frustratingly slow and China continues to be consistently inconsistent. Chart Industries (NASDAQ:GTLS) is down another 15% or so from when I last wrote about the company but still sports a double-digit trailing EBITDA, while Westport (NASDAQ:WPRT), Clean Energy (NASDAQ:CLNE), Linde (OTCPK:LNEGY), and CBI (NYSE:CBI) are likewise all down on a year-to-date basis.

The arguments for an LNG capacity build out still make sense - the U.S. has extensive natural gas reserves and LNG offers not only an alternative to oil-based fuels but also a way for countries like China to address air quality issues. Chart Industries addresses those opportunities with leading technologies in heat exchangers, storage, and distribution, but even after a 40% pullback the expectations built into the valuation don't exactly seem undemanding.

Read more here:
Chart Industries Has Deflated On A Slower LNG Buildout

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