Earth Biofuels, Inc. (NASDAQOTCBB:EBOF.OB)
CAPS Rating:
The principal business of the Company is the production of pure biodiesel fuel (B100) and the distribution of petroleum/biodiesel blended fuel (B20) for sale through the Company's network of wholesale and retail outlets.
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Yet another company in a new, still overvalued sector losing money and surviving only by selling stock and borrowing money. And when a company is priced 83 times its assets (as this disgraceful company is), I usually consider the company overvalued, especially if it is losing more money every year, gaining liabilities, has decreasing margins, and has a very small amount of cash. And did I mention that the company has negative book value?
Good grief, use common sense and you'll know this company is INSANELY overvalued. Simply yet another biofuel company that will plunge huge amounts over the next five years.