Tristan R. Brown
Alternative energy, long/short equity, commodities, energy

Renewable Energy Group Has 150%+ Upside On Higher Capacity And The Blend Wall

Summary: The arrival of the ethanol blend wall in the U.S. makes biodiesel the primary biofuel growth market in the U.S. over the next two years. Already the country's largest biodiesel producer by volume, REGI's recent purchases of additional capacity and a stronger balance sheet give it 164% upside by the end of 2014.

Renewable Energy Group (NASDAQ:REGI) is one of the rare success stories in the U.S. biofuel sector at present. Of the four producers of biodiesel and/or renewable diesel to have gone public in recent years, it is the only one that is currently trading above its IPO price (see figure). Its performance in 2013 has been especially notable, as the company's shares have increased...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details