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Stock sectors that could do well if Democrats win in November are outpacing those that favor...

Stock sectors that could do well if Democrats win in November are outpacing those that favor Republicans if they get control of the White House and Senate, according to an index created by LPL Financial. The move towards Democrats started back in April and May,” says LPL's Jeff Kleintop. But since the Supreme Court upheld health care legislation in June, it's been more dramatic.
Comments (5)
  • Ted Bear
    , contributor
    Comments (655) | Send Message
     
    I could care less who wins, as there is unlikely to be any real change to the borrow and spend tactics in Washington until the people decide they have had enough.

     

    However, Obama has been crushing mittens in the polls, and the margin seems to increase daily. It doesn't take rocket scientry to figure out that Obama has four more years, and the stock market is behaving accordingly.
    17 Sep 2012, 08:35 PM Reply Like
  • mike8599
    , contributor
    Comments (596) | Send Message
     
    Crushing ? LOL

     

    you and Hender must sit in the same room.... blogging together....liking each other "posts"... lol

     

    oh come on that is comedy gold...
    17 Sep 2012, 09:53 PM Reply Like
  • Hendershott
    , contributor
    Comments (1634) | Send Message
     
    Yup. Romney/Ryan are now reduced to courting Catholic deer hunters.
    17 Sep 2012, 09:06 PM Reply Like
  • Hendershott
    , contributor
    Comments (1634) | Send Message
     
    You don't suppose Romney has been one of the 47% not paying income tax in the past?
    18 Sep 2012, 04:47 PM Reply Like
  • rru2s
    , contributor
    Comments (310) | Send Message
     
    Renewable fuels are guaranteed favorable treatment if the democrats win, although it is still probable that even if a republican wins the White House, future renewable quotas such as the biodiesel RFS2 mandate will continue to grow for years 2014 and beyond. Nevertheless, under democrats this quota would be expanded with much less argument and less uncertainty.

     

    EPA just announced on Friday a 30% increase in the Renewable Fuels Standard (RFS) for biodiesel for 2013, 1.3 billion gallons up from 1.0 billion gallons in 2012. 1.3 billion gallons is the amount of biodiesel that is required to be blended in with ordinary diesel fuel by conventional diesel producers, and sales of Renewable Identification Number RIN credits are what drive the market. That number is expected to increase to 1.9 billion by 2015, a doubling of biodiesel usage in only 3 years.

     

    Renewable Energy Group REGI, the largest US producer of biodiesel, stands to benefit directly as this represents a guaranteed market demand for their 6 production facilities, which have a diversified feedstock of used oil, animal fats, and soybean oil, none of which compete with the corn market, making biodiesel not as controversial as ethanol quota mandates.

     

    REGI has a record of rapid expansion and has been profitable even without tax credit subsidies. Applying REGI's most recent quarterly EPS of $0.39 to three out of the next 4 quarters and an EPS of half of that value to one more quarter, yields a forward EPS of $1.37. Factoring in a 30% EPS increase directly associated with the 30% biodiesel quota increase, REGI has a 2013 forward EPS of $1.79.

     

    After the presidential elections biodiesel stock sentiment will be de-risked because there will be very high confidence in the RFS mandate being extended 4 more years. Assuming a de-risked P/E of 12 and a forward EPS of $1.79, REGI has a 2013 price target of $21.50, a 270% upside from the current price in the low $8s.
    18 Sep 2012, 08:32 AM Reply Like
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