Biofuel Energy Corp (NASDAQ:BIOF)

going bankrupt

Fundamentals of corn ethanol production are still not favorable. Corn futures prices remain over $7/bushel, making profits difficult even with recent uptick in ethanol futures prices.

This bugger is sooooo manipulated.

To my thinking this is a $3.00 stock, but only if it has a future, which I doubt. BIOF is bleeding money.

Instead it got boosted to a "floor" of $4.15 through big volume interventions, possibly through pump-and-dump campaigns. Between the interventions, the price seems to be held up by small fry.

This ends badly.

As America looks for alternative clean energy sources, I think investor interest will increase for BIOF. Already up over 600% since 2009.

I don't even know what number red thumb this is...3? 4? Now, while this company trades at a huge discount to book value (~0.4 price to book) I happen to know that doesn't matter. As a bioprocess engineer, I've seen plenty of ethanol producers go belly up and sell their assets at liquidation prices. These bankrupt (financially and engineering-ly) have no bargaining power. The big boys (BP, Shell, Renewable Energy Group, etc) know it and prey upon it. And why not?

The best example I know of was Shell's acquisition of the Fulton Ethanol plant in Fulton, NY, which currently supplies all biofuels for the Indy Series and even NASCAR. The company that owned the plant before had some pretty horrible designs (I've been inside the facility) that lead to contaminated batch after contaminated batch. This resulted in bankruptcy, grey hair, loss of bargaining chips, and ultimately a sale to Shell for some ridiculously low figure ($10-$15 million). Shell brings in its A-team, fixes the facility for about $20 million, and ramps up production capacity to 100 million gallons per year. The facility and adjacent property are now worth, what, $100+ million? Just a quick lesson on book value in the EtOH sector!

This stock did quite well last year from Sep to Dec.

Looks like market manipulation.

Huge debt, no profits, bad business.

Biofuel Energy after it's last reverse split 1:20 this past June is setting on a VERY LOW float and it's share price is oscillating It is the type of equity that could spike generating a short squeeze and put me underwater fast. Rather than avoid, the call, however, I've been playing the spikes like the Fool that I am. My confidence on a continued share price decrease despite the low float and the miniscule $16 Million market cap is the higher input prices. Corn will be in high demand due to the drought. Some are calling for a pause on the Ethanol government requirements to conserve corn for feedstock. Biofuel Energy Corp indicates it's supply "should" remain secure as the local areas it pulls from have not been hit as hard by the drought. Even if they maintain supply the cost will rise and they have been unprofitable since inception even at much lower input prices.

Losing subsidies will mean BIOF debt will, over time, need sale of new shares to repay.

Ethanol?

the demand for ethanol is increasing

BIOF a good trading stock right now between .61 and .68
http://stockmarketdouble.blogspot.com/

Will definitely hit $2-$2.15 by the last qtr of 2012.

I don't like ethanol companies, but at BIOF's price, I like it somewhat. I think it could go up 25% by mid 2012.

Biofuel Energy owns and operates two large corn dry grind ethanol plants in the Midwest, one in Nebraska and one in Minnesota. BIOF is a company that went through their construction and startup phases when the corn and ethanol markets turned ugly in late 2008 through early 2010. They survived when many failed. They also recently went through a successful stock offering that allowed them to pay off a bridge loan as well as restructure and pay off some of their long term debt. The fact they were able to pull that off as a pure play ethanol company in today's debt market is impressive all by itself. I think $0.80 for the stock is a pretty good floor given the stock offering price and details. I also think that if they survive, no guarantees here, the stock price will definitely climb. Fundamentally this is a bit of a long term flyer, but I think it is worth the risk.

Biofuel... the way of the future, bound to explode like EEE, don't know what EEE, look that company up and you will see, this is a must buy stock

Ethanol is in. Now that there are US mandates....sorry oil lovers, put your emotions aside and realize this is the logical way to go.

Lucky for me the price jumped up enough to go above the market cap long enough for an underperform call.