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Trade Alert: Vega BioFuels, Inc. (VGPR) Shaping up for a Nice Rebound Play
Fri, December 11, 2009 11:40:10 AMFrom: OTCPicks Publisher




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Vega BioFuels, Inc.
(OTC: VGPR)



Trade Alert:

"VGPR Looks Oversold to Us at around $.0145 and may be poised for a nice rebound into next week. Do your homework on VGPR today"
(See Full News Story Below)



Vega BioFuels Inc. (OTC: VGPR)

Detailed Quote: http://www.otcpicks.com/quotes/VGPR.php

Message Board Search for VGPR: http://www.boardcentral.com/boards/VGPR



Breaking VGPR News:

December 9 - Vega Signs Large Torrefaction Agreement With Hong Kong Firm

VEGA PROMOTIONAL SYSTEMS, INC. (PINKSHEETS: VGPR) announced today it has entered into a Joint Venture Agreement to build multiple manufacturing plants throughout China to produce alternative energy using torrefaction technology.

Vega and its Joint Venture partner, Global Capital Market, LTD (GCM), located in Shenzhen City, China, plan to build up to 10 manufacturing plants throughout the country. The Joint Venture company will utilize special torrefaction technology to produce pellets from organic waste products that will then be sold to power generating companies.

GCM is providing the land for the manufacturing facilities, the factories, and the necessary biomass resources to produce 100,000 metric tons of torrefaction pellets annually in each plant, generating approximately $14 million in annual revenue, per location.

Michael K. Molen, Chairman of Vega, stated, "We have been working on this project for quite awhile and we are very proud to have an Agreement in place. We have a very strong partner in China and look forward to building multiple manufacturing facilities throughout the country. GCM and its partners will provide us with an unlimited supply of raw biomass that will be turned into torrefaction pellets. The demand for this product around the world is substantial. We believe that we are in the right place at the right time. This Agreement has the potential to change our Business Plan tenfold. Our plan is to have the first plant operational within the next few months. We'll have a lot more information about the size and scope of this project in the next couple of weeks."

In addition to China, Vega now has active projects under way in Western Indiana, South Georgia, and Brazil.



VGPR has been a nicely trading stock that OTCPicks.com members have been able to make a lot of money in trading it on the swings lately. Price swings have ranged from around $.015 to as high as $.03 on December 7th.

We wanted to take another look at VGPR as we like this company and we think that it is trading right now at a pretty solid floor for the stock at around $.0145 and think that will the next company news can jump back into the $.02+ range or as high at $.025 to $.03. From this stock price that could be almost a 2X jump with very little effort so we wanted to alert OTCPicks members that this is as low as it has traded for a while so it might be a good time to pick up some shares at these price levels. In fact, we picked up some more shares of VGPR today ourselves and hope that it can pan out and rebound next week.

Looking at the price chart below things look oversold to us and any more good company news could see this one rebound significantly.

Just our opinion but do your own homework on VGPR and see why we like it at this price point.





Company Overview

Vega Biofuels, Inc. (VGPR) was formed to pursue the production and sale of biofuel products throughout the world. With the growing need for clean energy, and the uncertain costs of fossil fuels, power generating plants around the world are looking at more useful and economical methods to run their power systems.

The company has the unique advantage of having experts in the biofuel manufacturing industry involved in the company. The years of experience and the proprietary knowledge and ability to research the best combination of raw materials to make the best product will position the company in a very competitive position in the biofuel industry. Vega Biofuel's current expansion includes building manufacturing plants in various international locations that will produce biomass products and bio-diesel products for power generation units.

The current demand for the company's product in the industrial market is about 20 million metric tons per year and increasing. The wholesale market value is estimated at over $125 per metric ton (FOB manufacturing plant) or over $2.5 billion per year.

With the future demand for alternative energy throughout the world, it appears that the company is in the right place at the right time. With the revitalized demand for alternative energy sources, the popularizing of green energy and value added products, this industry has increased substantially over the past several years. It is estimated that over the next five years the use of biomass products as an alternative energy source could reach $10 billion per year.

Products

As global cross border trade rules have been relaxed or eleminated, many companies around the world have increased their production levels to meet the growing demand of their products. This has caused a significant increase in the demand for energy and the fuels that produce that energy. This increase in the production of energy has also caused an increase in pollution emissions that far surpass acceptable world policy levels. Manufacturing plants and municipal governments at all levels have started looking for alternate sources of fuel that are more efficient, cost effective, and have lower, more acceptable emmissions. Current alternative sources of energy include thermal, wind, light, water, fossil fuels (oil) and organic waste. Vega is concentrating on generating power from recycled waste products.

Biomass

Biomass or biofuel is material derived from recently living organisms. This includes plants, animals and their by-products. For example, manure, garden waste and crop residues are all sources of biomass. It is a renewable energy source based on the carbon cycle, unlike other natural resources such as petroleum, coal, and nuclear fuels. The use of biomass fuels can therefore contribute to waste management as well as fuel security and help to prevent global warming.

In addition to creating and selling energy, Vega Biofuels will produce two consumer products; fuel pellets and fire logs. These products will be generated from organic raw materials found in the timber industry and from organic raw materials found in the timber industry and from organic agricultural bi-products. The key to the quality of the company's products will depend on the combustion and heat value of the raw materials and the combination of the raw materials that go into it. We have the expertise to achive the required quality of our products on a consistent basis.

These raw materials are organic waste bi-products from saw mills, lumber yards, and agricultural waste after harvest. Millions of metric tons of saw dust is produced.by sawmills and lumber yards when producing wood. Some of the saw dust is used to make other products like roof shingles and wood panels. However, at least 80% of the saw dust cannot be used by these industries as the saw dust is too fine or not the right fiber content. Vega Biofules can utilize this waste product by cleaning, sorting and pelletizing it. The coarser the saw dust material is perfect for pelletizing and can be used to make fuel for power generation plants around the world. More and more power generation plants in Europe are being converted from using diesel to pellet fuel use.

Fuel Pellets

Fuel pelets are a type of fuel, generally made from compacted sawdust or other organic waste products. They are usually produced as a by-product of sawmilling and other wood transformation activities. The pellets are extremely dense and can be produced with a low humidity content that allows them to be burned with a very high combustion efficiency. Their regular geometry and small size allow automatic feeding with very fine calibration. They can produce energy by being fed into a burner by auger feeding or by pneumatic conveying.

The pellets are produced by compressing the biomass material which has first passed through a hammer mill to provide a uniform dough-like mass. This mass is fed to a press shere it is squeezed through a die having holes of the size required (normally 6 mm diameter, sometimes 8 mm or larger). The high pressure of the press causes the temperature of the wood to increase greatly, and the lignin plastifies slightly forming a natural glue that holds the pellet together.

A fuel pellet's high density also permits compact storage and transport over long distances. They can be conveniently blown from a tanker to a storage bunker or silo. As the price of the heating with fossil fuels increases, the demand for pellet heating has increased significantly. The demand has increased all over Europe and a sizable industry is emerging worldwide. A large number of models of pellet stoves, central heating furnaces and other heating appliances have been developed and marketed recently as an alternative to conventional heating units.

Emissions from pellet burning equipment are in general very low in comparison to other forms of combustion heating, making this one of the less-polluting heating options available.

The combustion of sustainably managed and harvested wood or biomass is generally sindidered to represent one of the best practical and available means for sustainable use of low net-carbon combustion for economic sectors that require the use of combution. The medium of wood or biomass pellets as a form of energy transfer provide a fungible, mass-producible, commerce-ready product capable of putting sustainable biomass combustion technology to work for the modern-day consumer - and in many cases, wood/biomass pellets are less expensive and nearly as convenient as other fuel sources.

In addition to home use, fuel pellets are sold in bulk and are used by power companies as a clean, efficient alternative to fuel their power plants and to generate electricity.



For a more comprehensive report on Fuel Pellets CLICK HERE



Fire Logs

Fire logs are made our of wax, sawdust, and other organic ingredients.

There are various sizes of fire logs. The most popular size has been the 5 pound log. However it has been superseded by the 6 pound log as North American sonsumers are now leaning towards bigger products because of the perceived value. In Europe, the 3 pound log is still the most popular because of smaller fireplaces and more stringent fire regulations.


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Vega Biofuels, Inc.

Phone: [phone]

Website:
http://www.vegabiofuels.com







Disclosure: OTCPicks.com has not been compensated for VGPR advertising and promotional services but has purchased free trading shares on the open market and still holds three hundred thousand shares.




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