The recent leak of an EPA proposed rule suggests that the RFS2's volumetric mandates in 2014 will be significantly reduced from their original levels. This caps a 3-month period that has seen RIN prices collapse, reducing a major driver of biofuel demand. While I originally expected the share price of biodiesel producer REGI to increase by 150% or more by the end of 2014 due to the impending arrival of the ethanol blend wall and the company's unique ability to get around it, I am reducing my price target to $15.68 due to the impact that the proposed reduced volumetric mandates will have on REGI's earnings if they remain unchanged in the final rule. Due to the recent...
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