Clean Energy Fuels (CLNE) was out with some more contract news this morning, but traders are more focused on a negative Barron’s piece over the weekend, warning that the company needs cash to expand while Pickens will need to cash out sooner rather than later.  Yep, that means dilution and Barron’s believes the stock could take a 30% hit after quadrupling in the past year.  Here are a few highlights from the article..

– stock has largely priced in a boost in government subsidies for nat gas fueled cars and trucks
– big oil and gas companies could step in and compete if larger fleets use nat gas
– company needs large amounts of cash to expand – that means dilution
– management has awarded itself a mountain of stock options which they will want to cash out of, including Pickens which stands to lose $150 million if he doesn’t exercise warrants by 2012
– company was receiving a hefty .50/gallon excise tax credit from Uncle Sam and still operates at a loss on a GAAP basis – that subsidy expired in December, but the company is confident it will be renewed soon

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To sum up, Barrons says, “Pickens and Littlefair have done an admirable job of hurdling obstacles in establishing natural gas as an alternative to dirty diesel imports from nations that hate us. At Clean Energy’s recent stock price, however, a new investor won’t get to enjoy much of the upside”.

Shares of CLNE are recovering off the morning lows and found support at the 50 day moving average.  The 19.50 level is a big level of support which it should hold at, but if in fact news of dilution hits, I can’t imagine that level holds.