Natural Gas Engines are Beginning to Look Pretty Good (OTC:OMTK)
Americans are Driving Less and Complaining More about Gasoline Prices…
The share valuation at OMNITEK ENGINEERING CORP (OTC:OMTK) has surged since its news last month that it will supply India-based Tata Motors original equipment high-pressure natural gas filters for 2012 passenger vehicles, expanding a supplier agreement for commercial vehicle filter applications that commenced in 2009.
OMTK shares were trading in the $1.75 range on Dec 20 and are currently trading in the $5.03 range; a gain of 187% in a little less than 10 weeks: Some very happy shareholders here.
By reading the Company’s filings, obviously management is making ‘growth’ moves such as considering a bigger exchange than the bulletin board for greater exposure to investors; bringing in a little operating capital via a stock pledge; and working with some big shareholders of OMTK stock to think ‘long-term’ and not flood the market with shares as that big 187% gain was forming.
Selling natural gas parts and engines to Tata seems the best way to me to hold that new share value and increase it over time. I think the big shareholders know that as well.
"The expansion of our supplier relationship with Tata Motors reflects the rapidly expanding utilization of natural gas vehicles in India and advancements in engine technology, particularly the shift to fuel injection systems in which a coalescing filter is a critical component of a compressed natural gas system, providing 99.9 protection from solid particulate matter and oil aerosols which can damage fuel injections, carburetors and regulators.
"We are gratified by Tata Motor's confidence in our high-pressure filter and look forward to continued growth in India," said Werner Funk, president and CEO of OMTK.
Funk also pointed out that U.S. domestic demand for Omnitek's high-pressure filter continues to expand, enhanced by the acceleration of natural gas engine conversions across the country, particularly with light and heavy duty vehicles.
Conversion kits to transform liquid fuel engines seems like a “Fleet” revenue proposition to me and with new car manufacturers looking for compressed natural gas alternatives, like Tata, I wouldn’t be surprised to see a new “Hybrid” rolling off an assembly line of any of the big three auto makers.
I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.
Do NOT buy or sell OMTK until you have read everything.
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| Date: | May 24, 2013 | |
| Price: | Free | |
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