Gushan Environmental Energy (GU)

greenwave3 (97.20) Submitted: 6/20/2008 1:04:09 AM : Start Price: $13.21 GU Score: -75.97

Largest biodiesel capacity and production in China. Huge proportion of their inputs are waste products, which leaves their margins intact (think - turning garbage into gold). The Chinese government requires waste oils to be properly recovered and recycled. This means that all vegetable and animal oils must be recovered, and GU is a welcome buyer.Production capacities at existing plants are between 100%-115%. These guys are busy -- really busy. They are also building more plants, two of which will come online later this year.And, the kicker? The Chinese government just announced that they are raising fuel prices (the Chinese government subsidizes petro fuel, as do many countries - they are effectively reducing their subsidie). Higher prices for diesel means that much more in the pockets of GU and its shareholders.