$7.04 -0.20 (-2.76%)
12/3/2009 4:02 PM

Darling International, Inc. (DAR)

CAPS Rating: 5 out of 5

The Company is a provider of rendering, recycling and recovery solutions to the nation's food industry; it collects and recycles animal by-products and used cooking oil from food service establishments and provides grease trap cleaning services.

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Member Avatar VikingKing66 (< 20) Submitted: 12/9/2008 4:16:33 PM : Outperform Start Price: $3.73 DAR Score: +43.93

DAR is the victim of forced selling in the short run. They have excellent cashflow and are currently selling for 2X EBITDA enterprise value. They have very little long-term debt and will therefore weather any downturn. They are well-positioned to benefit directly and/or indirectly from increased biodiesel production into 2009, with a Renewable Fuel Standard being adopted. As biodiesel feedstocks trade closer to their energy values, DAR being long feedstock will stand to benefit greatly. Plus, the federal blender's credit for yellow grease will begin to get a full $1/gal incentive from the feds. No one has more yellow grease than DAR.

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