Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

FutureFuel Looks Undervalued, But Mind The Volatility

For most of the past decade, investors have been badly burned by energy-tech and bio-whatever. In many cases, investors bought into bad business models that were built more on hype than sound economic principles. Yet, throughout that time, ethanol and biodiesel use has continued to grow and the U.S. government has continued to encourage (and in many cases, mandate) increased use of these fuels.

That leaves the very small FutureFuel (NYSE:FF) as an interesting, albeit very risky, stock to consider. Not only does FutureFuel have a real biodiesel plant up and running, but it uses a different feedstock than most if its competitors. FutureFuel also has a specialty chemical business that not only offsets some of the volatility...

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