BURP'S PLACE!

[rru2s]

$REGI US biodiesel producer. Market-moving news last Friday: EPA 2013 mandate announced requiring 1.3 billion gallons of biodiesel blending into diesel fuels, a 30% increase in the mandate from the 1 billion requirement for 2012.

From NASDAQ, REGI's latest 10Q shows $0.39 quarterly EPS w/out tax subsidies, suggesting a 12 mo. FWD EPS > $1.37. With a 30% increase in EPS in 2013 to be directly attributable to a proportionate increase in national blending quotas for biodiesel, expect an EPS of $1.79 in 2013. Post-election REGI will see a de-risked P/E, since industry renewable fuels mandates are likely to be extended and even increased for another 4 years.

Assuming a FWD P/E = 12 and a FWD EPS = $1.79, PPS = $21.50, about 350% upside from Friday's closing price of $6.11.