Hello,
I was thinking of investing a large percentage of my investment money into WPRT, WESTPORT INNOVATIONS INC COM NEW.
And wanted to get Fools’ opinions on the company ? Stock Advisor recommended it last year, not sure if they still do.
Thank you.
Over the past three years they have not grown revenue, and they are cash flow negative. I would not view this as a compelling investment.
I have no special knowledge of the industry–perhaps you do and have some insights that I do not. If you decide to invest, I wish you the best. However, I encourage you to open a small position (say 1% of your portfolio) rather than committing a large percentage of your investment money. There are safer, more compelling opportunities, many of which have been discussed on this board.
Good luck to you,
Tom
I was thinking of investing a large percentage of my investment money into WPRT, WESTPORT INNOVATIONS INC COM NEW.
And wanted to get Fools’ opinions on the company ?
Ha ha ha ha! That is a good one!
Just in case this is not a practical joke on Saul, you might want to go to the WPRT board on the Stock Advisor service and look up Saul’s posts there. He basically made his chops in the MF universe by taking this company out to the woodshed in the face of stiff opposition for a long time. (If you look at a stock price chart for WPRT, you will be able to ascertain who was on the right side of that argument!)
Of course, it is possible that things have changed now that the stock is trading at $3.44, down a bit from its all time high in the $40’s.
Rich
CED
Westport is a perfect example of a ‘story’ stock.
If the story plays out the rewards could be very big.
On the other hand, if the story does not work out, a total loss of capital is almost inevitable. (And with WPRT there a quite a few IFs).
Most of the posters on this board avoid story stocks like the plague - it is very ‘un-Saul’.
Some would say that if you want to play the natural gas angle CLNE offers a similar upside, but has ways to succeed whether or not the WPRT story plays out, so would give you a higher chance of success.
An investment in WPRT or CLNE is very risky, so if you decide to roll the dice, only a very small percentage of your portfolio should be committed.
Ian
Hi dars, assuming this isn’t a joke, and you are actually considering investing some of your real money in this company, I have to start by saying I haven’t followed it for a number of years and can’t help with the specifics. However, are you aware that the MF was strongly recommending WPRT when it was well over $30 too? And it has lost 90% of its value since then.
You might ask yourself some questions like:
Have they ever had any earnings?
Have they ever had any positive cash flow?
Do they have any prospects of either of the above?
Best,
Saul
dars,
WPRT is a high risk investment. I would not touch it.
If you do want to touch it, think of it as a speculative investment and only put in money you are willing to lose (ie <1% of your portfolio).
You say you are thinking of putting a “large percentage” of your investment money in WPRT. In my opinion, that is a mistake.
Even if it were to turn out well, it would have been a poor decision because of the risk involved.
In investing, you want to have probabilities working for you, not against you.
-Brandon
Hi and welcome, I work in Supernova, not Stock Advisor but I would suggest that you stick with the recommendation of the SA team- begin with the Starter stocks and every month look at the Best Buys Now. Once you have built a portfolio of at least 15 starter and best buys now, consider other stocks within the universe. Do not over allocate one stock, AND your higher percentage stock should be exceptional in some way: growing revenue better than most, growing earnings, great cash flow and a dividend.
Never buy something only because it is down, that is wealth destroying, companies do go bankrupt and shut down. CAPS player enjoy looking for the because a stock that goes to Zero earns 100 points!
Thanks for posting, we are glad you have joined in the Foolishness. Have fun, learn lots, keep posting, and may you have a orofitable good time.
Flygal
I’m guessing this is a joke trying to troll one of the recent sell recs that was finally admitted by one of the newsletters.
But if you are serious, it’s always better to buy quality, especially since lots of quality companies are on sale lately
Thank you everyone. I did not realize Stock Advisor could be so wrong about a stock. They also recommended these stocks, all way down from their one-year highs:
SWIR, SIERRA WIRELESS INC COM
DDD, 3-D SYS CORP DEL COM NEW
SSYS, STRATASYS LTD SHS
I guess I will just stick with their core stocks and best buys.
I may be wrong, but aren’t we NOT supposed to post the list of recs from a paid service onto a public board?
B.