Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

More on NGBF

Leading Technical Indicators Show that New Generation Biofuels (OTC:NGBF) Could Be on the Verge of a Huge Breakout!!

MACD, Stochastics and RSI Indicators All Point to (NASDAQ:NGBF) Being OVERSOLD and Poised for a Big Turnaround!

New Generation Biofuels NGBF is a renewable biofuel provider positioned for explosive growth by marketing a new class of “Second Generation” biofuels for use in diesel fuel applications including power generation and commercial and industrial heating.
We are especially excited about this pick because NGBF has developed patent-pending groundbreaking technologies and all of our technical indicators show that NGBF is Extremely Oversold right now. We think that NGBF may very likely on the verge of a Tremendous Breakout!

Technical Indicators Show that NGBF is Extremely Oversold and Undervalued!

NGBF is currently trading close to its 52 week low and was double where it is today just a few months ago; but if you look at the technicals, you’ll see that it can easily return to these levels and higher in the very short term.
The most commonly used technical indicators by savvy traders are Moving Average Convergence Divergence (MACD), the Relative Strength Index (RSI) and Stochastic Oscillators. 
As you can see on the chart below, all three of these indicators show that NGBF is on the verge of a significant trend reversal back to previous levels that are 5 TIMES HIGHER than its current price!
MACD – Moving Average Convergence Divergence

According to the MACD indicator, NGBF is about to enter a “Bullish Crossover” meaning the MACD Line is on the verge of crossing the red Signal Line on an upward trajectory. Also, the MACD’s histogram that measures the actual moving average divergence at extremely low levels clearly indicating that NGBF is about to reverse its current downward trend.
RSI – Relative Strength Index

The Relative Strength Index (RSI) is a momentum indicator that oscillates on a scale from 0 to 100 where a stock is considered overbought when its RSI is above 70 and oversold when its RSI is below 30. NGBF has an RSI of 32.81 which means that the stock is currently OVERSOLD and poised for an upward bounce
Slow Stochastics

Slow Stochastics on NGBF also indicate that the stock is OVERSOLD and looks poised to cross the bottom range of 20 on an upward trajectory in the near future which is the THIRD CLEAR BUY SIGNAL for NGBF!



In addition to technicals that indicate this is an ideal time to get into NGBF, here are some highlights of how New Generation Biofuels is set to transform the Biofuel Industry!

NGBF’s Proprietary Technology Has Led to Significant Competitive Advantages

The demand for Biofuels is skyrocketing worldwide because when compared to traditional fossil fuels, they have the ability to reduce greenhouse gas emissions and environmental pollution while promoting energy independence through a sustainable, renewable future energy supply.

While “First Generation” biofuels can provide the benefits mentioned above, they have one significant Drawback – Their feedstocks may divert food from human use and contribute to price increases and food shortages, particularly in lesser-developed countries.

NGBF has created a Superior “Second Generation” of Biofuels that provide superior environmental and technical performance than the “First Generation” at a lower cost!

The reason that NGBF’s “Second Generation” biofuels are superior is because they are precision blended products made from new or recycled plant oil or animal fat feedstocks and without using a complicated chemical reaction producing by-products.  In fact….

NGBF has commercialized a patent-pending process to economically produce a renewable biofuel that can be used as a replacement for diesel, #2 heating oil, kerosene and other fuel oils representing a staggering market opportunity for the Company!

The Biofuels Industry and Market Trends

Biofuels are solid, liquid or gas fuels produced from renewable, recently living biological resources, such as plant biomass. They are perceived to have a number of potential benefits over fossil fuels including the ability to reduce greenhouse gas emissions and environmental pollution, promote energy independence through the growth of domestic energy sources, increase rural development and establish a sustainable, renewable future energy supply.

“First generation biofuels,” such as ethanol or biodiesel, use conventional technologies to produce fuel from crops high in sugar, such as sugar cane or sugar beets, or high in starch, such as corn or maize, or from crops containing high amounts of vegetable oil, such as soybeans or palm oil, or from animal fats. The growth of first generation biofuels has been criticized because of perceptions that their feedstocks may divert food from human use and contribute to price increases and food shortages, particularly in lesser-developed countries.

“Second generation” or “advanced” biofuels use newer technologies to produce fuel from food crops, non-food plants and waste vegetable oil sources. The Company calls its biofuel “New Generation Biofuel” because it can be produced using their less complex, proprietary blending technology to derive fuels from both food crops like soybeans and non-food sources such as recycled vegetable oil.

Biofuels Market Size and Growth

The Energy Information Administration (“EIA”) has projected that the use of alternative fuels, such as ethanol, biodiesel and coal-to-liquid, will increase substantially as a result of the higher prices projected for traditional fuels and the support for alternative fuels provided in recently enacted federal and state legislation.

According to a recent report, direct economic output from the advanced biofuels industry, including capital investment, research and development, technology royalties, processing operations, feedstock production and biofuels distribution, is estimated to rise to $5.5 billion in 2012, $17.4 billion in 2016 and $37 billion by 2022.

Government initiatives are expected to contribute to this growth. According to a 2008 study performed in connection with the legislation, the economic impact of increasing renewable fuels production to 36 billion gallons between 2008 and 2022 would include:
  • Adding more than $1.7 Trillion to the U.S. Gross Domestic Product
  • Generating an additional $436 Billion of Household Income
  • Supporting the creation of as many as 1.1 Million new jobs 
  • Generating $209 Billion in new federal tax receipts

NGBF's Market Opportunities

New Generation Biofuels believes a significant market opportunity exists for its biofuel in three target market segments that consume approximately 15 billion gallons of fuel per year:

Power Generation - The power generation sector consumed approximately 2.2 billion gallons per year of distillate and residual fuel oils, according to the estimates available from the Energy Information Administration. This sector includes “peaking” power plants eligible for government renewable energy credits and constrained by emissions limitations.

Commercial and Industrial - This sector consumes approximately 6.4 billion gallons of distillate and residual fuel oil per year that could switch to our biofuels, according to the estimates available from the Energy Information Administration. This segment includes large institutional customers like state government buildings, hospitals and sewage treatment facilities that are taking a leadership role in reducing greenhouse gases.

Marine - According to the estimates available from the Energy Information Administration, diesel fuel consumption in the marine market is approximately 6.3 billion gallons per year and includes commercial and private boats, such as pleasure craft, fishing boats, tugboats, and ocean-going vessels, including vessels operated by oil companies. This sector is exploring renewable fuels due to tighter emissions standards and restrictions on cruise liners idling in port.

Key Advantages of NGBF’s Biofuels 

  • NGBF’s biofuel is ready to use in industrial applications without mixing or blending with other fuels, equipment modification or substantial loss of performance.
  • NGBF’s biofuels can serve as a complete fuel replacement wherever distillate or residual fuel oils are used today.
  • NGBF has the flexibility to deliver biofuels directly to the end user customers or to license the technology to customers for manufacturing our biofuels for themselves, without relying on distributors or other intermediaries.
  • NGBF also has the flexibility to blend our biofuels with other fuels, such as diesel, depending on the needs of the customer.
  • NGBF’s biofuels are renewable “carbon neutral” fuels with virtually no sulfur emissions and minimal net carbon dioxide emissions. Their biofuels have demonstrated reductions in nitrogen oxide emissions of 40% or more in utility scale.