No they sell it at the same price as all the other bio-diesel producers. Unless they are under contract. Prices have come down over the last several months. Furthermore, most of those contracts will be expiring soon and will be renegotiated. Btw.. not sure what you are smoking, but the credit is the only thing keeping them alive at the moment. Additionally, I agree with grgsvll, the mandate is the biggest thing we are waiting on. Additionally, stop using RSF2 as if they are an entity. RSF2 is the standard or rule. The EPA is the entity that develops the rule. I would run your numbers again. Make sure you use 8 lbs for white and yellow grease in your calculations. (I’m actual being gracious with that number.. it could be as high as 8.5). btw. They even put it in their 10q. 7.6lbs is only for soy calculations. if you are going to run numbers you might as well be accurate.
OMG.. Stupid people. Your thought process jumps around more than a 6 year old. Next time you should be more precise before making blanket statements. It makes you look foolish. Such as “its from yellow grease and its much better than the fuel they are buying now made from crude. It freezes at a much lower temp” Next time use a knowledgeable thought process and state something like “because of the “A” process at the “B” plant they are able to deliver “C””. You are in a tread that did not specify any plants or processes. I totally understand what they are doing at the plant. I completely believe what they are doing at the Geismar plant is environmentally and scientifically great. Feasibility is another question all together. The same issue still clouds the industry in general. Let’s not forget about past. The industry has a history of failure and corruption due to purely written laws and a properly regulated secondary market.
If you are going quote something please make sure you know your facts. Yellow grease and Tollow is terrible in cold weather. It clouds at much higher temperatures then Soy, corn and other plant derivatives. The higher the Feedstock is in Saturated fat the higher its Cloud points is. before calling someone a moron, stop being one yourself.
I pretty much have to laugh at people like you. I completely understand the margins associated with REG and the industry. You can't face the real facts the next several quarters are going to be dismal and majority of real investor won't touch it with a 10 foot pole. Yeah.. it maybe good for a few short term trades other than that its dead money. lol.. What a comment.. Do you even know what RFS2 is? Thanks for giving me one of the biggest laughs i had all weekend.
You have to agree the next couple of quarters will probably going to suck. Heating oil prices have been dropping and. feed stock doesn't look like its getting any cheaper. Additionally, Not all their plants are setup to do use yellow or other cheap feedstocks, some are still stuck using Soy and more expensive feedstocks. RFS2 is a joke. RIN fraud is still running rapid, creating uncertainty in the industry UDSA and other government subsidized programs are more than likely going to cut even further Its a corrupt industry that has failed once and it will probably fail again. OMG And you guys wonder why its at 8.50. Not Until Bio-fuel and RIN's have a real trading market and where the government doesn't have to subsidize to keep the industry afloat, are you going to get any real money investing in this company and or the industry in general. It might be good for a few short term trades but that's about it.
I've been out of this stock for a while.. Once and a while I take a moment and read some of the comments. I have to laugh.. Last year the same people were saying its a pump and dump putting out news on everything they do. Now that they are quiet the same people now saying move on, because they don't have any news. wow. You guys are like heckle and jeckle with Mr. Hyde poking his head around the corner.
The next 45 to 90 days is going to be interesting for this company. There Lots of people giving rosy pictures to their EBITDA and margins. I would personally take some money off the table. The last time prices dropped below $3.00 it sent many companies into bankruptcy.