1 reply to this topic

[ogm]

I've mentioned BIOF here and some people were interested. So I'm posting an update. VSE this morning announced that its buying 3 ethanol plants for 725 mil, with production capacity totaling 330 mil gallons. BIOF has 2 plants under construction ready to be complete in Q1 2008, with production capacity totaling 230 mil gallons. At the same time BIOF market cap is... 133 mil. So if you use the same value that VSE puts on the production per gallon, BIOF should have market cap of 500 mil, or the stock should be trading close to 30 dollars per share. Currently trading at 9. I think its a very conservative estimate in general and ethanol stocks are still very underappreciated. But even in this market for ethanol stocks, BIOF presents significant value.

Edited by ogm, 23 July 2007 - 08:22 AM.

[PorkLoin]

Thanks, OGM. Been vacationing and haven't traded in a couple months but now am starting to look at some stuff and I appreciate you mentioning it. Best, Doug