Westport Innovations Inc. (NASDAQ: WPRT) is surging on news this morning that it has signed a second deal with General Motors Co. (NYSE: GM) for the company’s compressed natural gas engines for light-duty vehicles. The reaction is likely being exacerbated by a short squeeze. Keep in mind that this is the second pact rather than a new pact and financial terms were not disclosed in this news. Still the reaction is one which cannot go unnoticed.
The street has a belied that Cummins Inc. (NYSE: CMI) can crush the company, but this may be more overlap than totality. One boost may also be that Navistar International Corporation (NYSE: NAV) could still be at-risk and its shares have continued to drop of late.
To prove that a short-squeeze is taking place on top of the news, the June 15 short interest that was just released showed that 17.156 million shares were short. That is not the highest days to cover at 5.5 but that is the largest nominal short interest reading in at least a year.
Westport shares are up 9.8% at $35.70 and the 52-week range is $20.01 to $50.19.
JON C. OGG