By JGillman, Section News Posted on Sun Aug 10, 2008 at 10:55:13 AM EST
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In a prior post, I told you about a possible profit motive by Nancy Pelosi. I thought it might be educational to post the actual proposal: California Clean Alternative Fuel Initiatve. And though the proposal is for California to spend $5,000,000,000.00, we must remember that it also calls for seeking matching Federal funding as well. Part of what I find obvious may elude some reading that post, so I have broken it down a little, and added a little info for clarification.
The list...
$5 Billion dollar investment in "clean fuel" (read Natural gas) means that a company which has postured itself for servicing such demand will have a pretty nice start up contract should the state of California adopt the measure.
Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. It is also Owned by T. Boone Pickens, and other stockholders.
Clean Energy Fuels Corp. has funded the initiative to the tune of about $3.7 Million.
Clean Energy Fuels Corp. Has no record of public stock availability prior to May 25, 2007, suggesting that date is when it became public.
Clean Energy Fuels Corp. has assets of approx $137 Million
Nancy Pelosi Purchased between $50,000-$100,000 in CLNE stock on May 25, 2007 apparently on it's initial public offering.
If OIL prices fall as they would with increased supply, Gas prices would be cheaper, and people making a decision on such a proposal might not see it as much of a benefit.
Nancy Pelosi is doing her best to STOP a vote which would allow the US to develop better SORT, and long term oil supplies.
While one might argue this as a coincidence, and that $50,000-$100,000 investment is a drop in the bucket to a rich woman like Pelosi, let me put a little perspective on the map. Think Microsoft, Think Google, Think Dell.. Very SMALL as start up corporations, which which have very large customers, and have grown to be incredibly profitable for initial investors. Because I do not have the economics knowledge to be able to calculate the actual financial result of such a proposal passing for Clean Energy Fuels Corp., I would suggest we think on the order of at least a double digit multiplier over a few short years.
