Westport Innovations Inc. (USA) (WPRT), The Procter & Gamble Company (PG), Power Solutions International Inc (PSIX): Another Company That Could ‘Kill The Gasoline Engine’

Power Solutions International Inc (NASDAQ:PSIX)’s customers love all this, a fact that is borne out on the income statements. In 2010 it reported sales of about $100.5 million while last year it reported sales of about $202.3 million — a 101% increase in two years. And it’s on track to continue that climb this year: Earnings came in 9% higher in the first quarter than they did in the first quarter of 2012.

Usually companies like this take on an enormous amount of debt to get off the ground, but when you check Power Solutions International Inc (NASDAQ:PSIX)’s balance sheet, you’ll find that it is debt-free.

Risks to consider: The switch from gasoline to natural gas-powered vehicles is still in its infancy. I wouldn’t advise anyone put more than a small percentage of their portfolio in a stock like PSI. 

Action to Take –> Factor in Cohen’s belief that the “on-highway market is prime and capable of delivering $500 million in business,” and I see a company ready to capture growth building “America’s Natural Gas Highway.”

– Andy Obermueller

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