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Harris L. Berenholz, CFA
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I like analyzing stocks, especially small caps and micro caps. My firm, Carpe Diem Advisors, LLC provides investment ideas, research and analytical services. Before establishing my firm I was (for 18 years) a Managing Director of Invemed Associates LLC, a New York Stock Exchange member firm,... More
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  • Business in Brazil will boom for International Fuel ($IFUE)
    Last Friday, Brazil-based Petrobras (NYSE:PBR, StockTwits: $PBR) announced that it has taken a 50 percent stake in local biodiesel company BSBIOS Industria e Comercio de Biodiesel Sul Brasil S.A. for  about  $128.4 million. The acquisition is part of Petrobras’ initiative to more than double its biofuel output over the next few years

    As reported earlier, International Fuel entered the huge Brazilian market via its purchase order from Petrobras, the world's  third largest energy company, to supply PerfoLiFT BD-4 to Petrobras for use in its three wholly-owned bio-diesel manufacturing plants in Brazil.PerfoLiFT BD-4 is part of the PerfoLiFT BD-Series of proprietary IFT fuel additive formulations which provide superior oxidation stability and deposit formation control in bio-diesel fuel blends. Both IFT and its distribution partner in Brazil, Next Group Brazil, are on Petrobras’ Registered Vendor list.

    Petrobras is a $139 billion (in revenues) company that has become one of the world's leaders in "green" fuel technology. Affiliation with Petrobras could mean substantial  revenues for  International Fuel. It also provides the company with  the credibility  necessary to call on other major, prospective customers both in Brazil and elsewhere around the world.

    Its been a long, arduous task for International Fuel on the road to commercialize its revolutionary, breakthrough  destructive technology--fuel additive formulations that not only improve fuel economy but also reduce pollution and engine maintenance costs and are easy to use (splashing).But the company has persisted and the payoff appears to be at hand.

    Disclosure: I own IFUE shares
    Jul 08 1:52 PM | Link | Comment!
  • Wisdom Tree’s (WSDT) Assets under Management continue to grow

    In June, (see below) the company  was one of only two of the top eight  ETFs (Exchange traded Funds)  to  increase  assets under management (AUM), according to data provided by NSX (National Stock Exchange).

     

     

    Month End June 2011

     

     

     

     

     

     

     

    Assets ($Mil)

    By Issuer

    Jun-09

    Jun-10

    May-11

    Jun-11

    Products

    Blackrock

    $291,646

    $361,719

    $484,908

    $474,240

    213

    SSgA1

    $149,834

    $193,354

    $259,569

    $259,331

    101

    Vanguard

    $59,250

    $102,718

    $177,248

    $174,750

    64

    Invesco/PowerShares

    $25,565

    $32,095

    $46,292

    $44,142

    114

    ProShares

    $27,537

    $25,404

    $26,184

    $27,152

    121

    Van Eck

    $8,052

    $14,486

    $22,999

    $22,904

    34

    Deutsche Bank2

    $7,528

    $9,750

    $13,859

    $13,265

    21

    Wisdom Tree

    $4,027

    $6,231

    $12,295

    $12,934

    46

     

     

    Furthermore, as noted in the past, the company  is  one of the best investment plays (and the purest) in this growth industry of ETF sponsors and management. It is already cash flow positive; has turned profitable on a GAAP basis; and has a rock solid, debt-free balance sheet.

    The shares  soon will be  registered with the SEC and listed on an exchange instead of trading on the Pink Sheets. There is  also a takeover aspect in that  40% of the stock is owned by Chairman Michael Steinhardt, a proven, successful, money maker. It’s possible that at some point he becomes the catalyst for sale of the company at a higher valuation on a much higher AUM level.

     

    • Disclosure: I have no positions in WSDT, and no plans to initiate any positions within the next 72 hours.
    Jul 05 11:44 AM | Link | Comment!
  • International Fuel ($IFUE) stands to capture share in the worldwide bio-fuel market

    Trying to commercialize a revolutionary, breakthrough technology is a long, arduous process. Despite clear evidence of   efficacy in the lab and in the field, there is always resistance to change-- especially from those existing products that have the most to lose.International Fuel faced enormous roadblocks in its efforts to launch its fuel additive formulations that not only improve fuel economy but also reduce pollution and engine maintenance costs and are easy to use (splashing).

     

    The company has persisted and the payoff appears to be at hand:

     

    The worldwide production of bio-diesel as a diesel fuel renewable extender is rapidly increasing, fueled by the emergence of national and/or regional bio-fuel mandates. All these bio-diesel productions need to be stabilized in order to meet the oxidation stability specifications that have been adopted around the world to guarantee the quality of bio-diesel.

     

    Worldwide production (outsourced) and distribution are in place to sell the company’s engineered liquid fuel additive formulations specifically designed to provide superior oxidation stability, long term storage stability, and deposit formation control to bio-diesel and bio-diesel fuel blends.

      

    Patent position is strong, with a number having been granted and more expected.

     

    Potential markets are large: In Brazil alone, there is a $30 million potential. In the European Union (NYSEARCA:EU), 100% market penetration could produce revenue approximating $37 million. Sales have already been posted in several of these EU countries.

     

    IFT’s breakthrough technology is gaining recognition as one of the top performing technologies for bio-diesel stabilization. It has received the coveted “No Harm” certification from the German-based Association for the Quality Management of Bio-diesel (AGQM) under its “No-Harm and Efficiency” program.  AGQM’s “No Harm” certification is the international standard in the bio-diesel industry due to the demanding requirements necessary to obtain such certification. In many markets, AGQM “No Harm” certification is required to enter that market.

     

     

    Harris L. Berenholz, CFA

    Disclosure: I own IFUE shares.

    Jun 29 6:34 PM | Link | 2 Comments
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