Hey all, we sure made a lot of money on this thing, anyone following over here? The room for growth is still enormous. With Geismar expansion and continued scale to economy with biodiesel, this thing has some serious potential. The PE ratio after this enormous run is still microscopic. Renewable diesel has better margins than their biodiesel, and I think they are going to make a serious expansion beyond Geismar in the next 5 years.
Some of my friends ask me why it still looks so undervalued. Part of it is oil prices have been low for so long and most alt energy went belly up when this happened. REGI has management that operated much smarter than these firms and invested in struggling firms' refineries that spent too much on investments when oil was ridiculously high. When oil tanked, REGI started buying and enhancing refineries at pennies at the dollar. REGI bought SYNM, that is their golden ticket. The stuff has better performance than fossil fuel based diesel built for cold weather, companies want to pay extra for it than regular diesel because of its characteristics, tax incentives, high performance and better margins than biodiesel.
Another reason is investors hate alt energy stocks except for Tesla. They all went broke. REGI isn't going to spend money on a project without thorough evaluation, truly a great company to be in right now!
