Renewable Energy Group (REGI)

[Ramberts]

I was a holder of SYNM and did not do well. When I heard REGI was buying...I went in large. I think REGI has a great management team and I know where they are going for the future, renewable diesel (higher margin, easier blending, better cold weather properties than biodiesel). I sold 50% of shares yesterday for a decent profit. The market wants the tax credit, in the future REGI will not need it IMO because they are going towards higher margin renewable diesel. I am not expecting the May 2 earnings to be great.

I am going to try to buy back in before this bill gets voted on, maybe even May 3rd at a larger position than before...
http://biomassmagazine.com/articles/16060/finkenauer-introduces-house-bill-to-extend-biodiesel-tax-credit

I expect a nice rise in price if it is voted in.

The Air Force, Navy, Army wants renewable fuel...with more refineries, I think around 2025-2030 they will get it, and the only company that will be in a position to sell it is REGI. Dynamic Fuels was not to scale when they were selling...they had to transport renewable diesel to other facilities for additional refining, not ideal. I think by 2025-2030, they will have it down pat all in house.

I also like their patent portfolio, specifically Phase Change Materials, which they are still working on.

https://www.linkedin.com/in/raminabhari/
This guy is one of the smartest scientists in the oil and gas industry that goes along with a solid management team that is conservative financially, yet willing to invest in R&D so one of the smartest scientists in the oil and gas industry can make his magic.

I think eventually...REGI is going Algae due to Ramin Abhari, but they won't make the SYNM mistake, they will do it when the margins are right and when production within the refineries are truly ready. Could be a decade or two away...but that is the true gold mine IMO.