Vertex Energy Inc (VTNR)

[jasonak]

VTNR .40

Vertex is a classic value stock currently selling for a p/e of around 4.

The exciting thing about VTNR is the TCEP product sales. They earned 208k last quarter without any TCEP sales. They upgraded their TCEP processesduring the 3rd quarter, making them more efficient and started producing again in OCT per the release of 75k barrels sold in OCT + NOV 2010. Their margins are higher on the value added TCEP diesel product generated and sold to an Intl fuel blender. According to Marlon Nurse (hired IR guy), there is no seasonality to producing and selling the TCEP product and they have the current capacity to produce 45k barrels per month.

Given the higher margins on TCEP sales vs. their other Black Oil sales, and given the 75K barrels sold in two months, I think we see a large quarterly revenue/earnings jump in the coming quarters.

I am buying.