For most of the past decade, investors have been badly burned by
energy-tech and bio-whatever. In many cases, investors bought into bad
business models that were built more on hype than sound economic
principles. Yet, throughout that time, ethanol and biodiesel use has
continued to grow and the U.S. government has continued to encourage
(and in many cases, mandate) increased use of these fuels.
That leaves the very small FutureFuel (FF)
as an interesting, albeit very risky, stock to consider. Not only does
FutureFuel have a real biodiesel plant up and running, but it uses a
different feedstock than most if its competitors. FutureFuel also has a
specialty chemical business that not only offsets some of the volatility
of the biodiesel business, but also offers growth prospects in its own
right.
Continue to the full article here:
FutureFuel Looks Undervalued, But Mind The Volatility
Showing posts with label Darling. Show all posts
Showing posts with label Darling. Show all posts
Friday, December 21, 2012
Friday, March 4, 2011
Investopedia: Darling: Dirty Business, Sweet Cash Flow
Well-known fund manager Peter Lynch once wrote that he often knew he had found an interesting investment opportunity when the company in question performed a service that was unpleasant or sometimes even disgusting. The example Lynch used was Safety-Kleen, a company that built an attractive business from the collection and recycling of oil and other industrial waste products. The same could certainly be said though for Darling (NYSE:DAR), the only publicly-traded company with significant operations in the field of rendering, recycling and recovering the food industry's biological waste products.
The full article awaits at:
http://stocks.investopedia.
A Solid End to the Fiscal Year
Darling took a bit of the wind out of its own sails by preannouncing results for the fourth quarter a little while ago. Nevertheless, reported revenue growth of 52% (and organic growth of 33%) is still quite impressive and was quite a bit better than the original projections for the quarter. Likewise, the company's adjusted EPS of 0.22 was not only a bit ahead of updated expectations, but well ahead of the 17-18 cent range in place a month ago.
Although Darling does not include much information with its press release, the company followed its press release with its 10-K. To that end, free cash flow again ticked up for fiscal 2010. Investors should note that free cash flow growth has been trailing revenue growth, but increased amounts of capital expenditures have clearly played a role in that equation.
The full article awaits at:
http://stocks.investopedia.
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