BioFuel Energy Corp. (BIOF)
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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Ethanol, except for possibly from cellulose, is a looser in the US, as the costs are too high. If you want a good long-term solution the answer is bio-diesel. The problem is that the current energy bill in the US will support this venture, even if it is not the way to go, and would lose money if not for the government subsidy.
I am bullish on renewable energy and energy stocks overall, but see this stock as a limited upside as the prices of the feedstock that will support their plants (ie food sugars) go up in price.
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Lucky for me the price jumped up enough to go above the market cap long enough for an underperform call.
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BIOF is supported by Cargill Inc. and are building ethanol plants next to Cargill's silos. BIOF will be a medium to major supplier of alternative fuel in the years to come.
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The biofuel industry is going to be big money in a few years. This company seems to be on the right track with its expansion and ties to major players- cargil. I believe given enough time and patience this company can outperform the market.
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Bio Fuel is coming, demand will continue its all good.
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Ethanol should get good exposure this election year. BIOF is lined up with strong partners. They are ramping up considerably. Look for a double from here.
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Not another "gasahol" company. Sliding from $10.40 IPO price. Expect will take awhile to get back there.
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http://valueplays.blogspot.com/2007_06_01_archive.html
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The company has a strategic partnership with Cargill, a mego-power. The Chairman has an amazing track record in the energy sector. It is a winner!
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This one is near and dear since it deals with bio fuels.
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ipo in an emerging market, even if you just sit on it for a year or two I can't see how you could possibly go wrong. Even if it is all hype, it will certainly rise in it's first year or so.

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