Oil & Gas - Energy - Commodities - Resources (OILBRENT)

[rru2s]

$REGI - FWD PE = 1.0. Largest biodiesel independent in US.

Market reacted to 2012 earnings because biodiesel tax blender credit was issued too late to bolster 2012 earnings, retroactive $58M or $1.70 now being added to 2013 earnings. Combine that with another $73M from 2013 tax blender credits, and you have $133M tax blender profits into a mere 34M shares. That $3.91 EPS just from the credits. Adding in real earnings from sales of RIN and biodiesel for 2013 (Q1 - Q3 EBITDA about $10M + $20M + 27M), guessing $10M for Q4, and you get an EPS of $6 with a current share price of $6.

REGI retired most of their debt in December, $66M cash. Also added capacity from acquisitions last year and adding another 150M gallons capacity this year. Renewable mandate for blending biodiesel was increased to 1.28 billion gallons for 2013 from 1.0 billion gallons for 2012. So you can see 2013 will be a good year.

GLTA.