Biofuel Energy Corp (NASDAQ:BIOF)

CAPS Rating: 1 out of 5

The Company is considered development stage as its only asset is its investment in Energy LLC. The Company's plan is to become an ethanol producer in the United States.

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Player Avatar TMFBlacknGold (99.37) Submitted: 9/17/2012 4:19:41 PM : Underperform Start Price: $10.35 BIOF Score: +33.77

Somehow, this company is trading at a discount to shareholders' equity. However, with only 230 million gallons of ethanol capacity, tons of debt, and little cash, this company has very little to look forward to. I don't see how they can compete with the numerous other EtOH producers with a higher capacity, better distribution network, and more customers. This short-term pop from the long overdue RFS2 mandates for 2013 will not be sustained.

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