Methes Energies Inc (MEIL)

[MissionIR]

MEIL Receives Bullish Review for Strong Biodiesel Portfolio

A recent article by Seeking Alpha contributor Fusion reviews the use and potential of biodiesel, an engine fuel produced from vegetable oils and animal fats that can reduce the consumption of diesel and its toxic emissions. In this review, Fusion lines up three publicly traded biodiesel companies for comparison and market potential:

• Renewable Energy Group (REGI)
• Future Fuel (FF)
• Methes Energies International (MEIL)

To read the full article visit http://seekingalpha.com/article/1937041

Each of the companies have biodiesel products registered with the Environmental Protection Agency for importing in the U.S. As Fusion points out, however, Methes differs from its industry counterparts by also providing biodiesel technology to its clients.

Fusion writes: “Methes Energies may be small compared to Renewable Energy Group in installed capacity or sales of biodiesel, but unlike other players, Methes provides biodiesel technology in addition to producing biodiesel. Methes Energies offers a wide range of products in biodiesel, including biodiesel equipment, feedstock to biodiesel producers, and biodiesel itself. Although most of the revenue is derived from selling biodiesel, having multiple revenue streams is expected to help grow the company’s top line even with any future risk related to biodiesel.”

Methes products include two fully automated biodiesel processors: the Denami 600 and Denami 3000. The company also provides equipment buyers with support such as maintenance and a lifetime warranty on the equipment, in exchange for a royalty fee based on the client’s biodiesel production. Methes also reports increased interest from ethanol producers for using Denami processors to convert corn oil into biodiesel.

After comparing various other aspects of all three companies, the article concludes that Methes is strongly positioned to achieve its fair share of the market.

In conclusion the author writes that, “Methes Energy is positioned to post record top-line growth next fiscal year. As per the company’s projection, it believes its total revenue will increase to $55 million next year. This was based on its November presentation, before the OTC Technologies acquisition, so these estimates will likely change, and the actual figure will be much bigger as sales from the newly acquired technology will bring additional revenue to the company: for example, the ethanol market is much larger than that for biodiesel. …. Therefore, it is a good investment opportunity, and looking at its growth initiatives, Methes Energies could generate good returns for shareholders next year.”

For more information visit www.methes.com