There
are 15 cellulosic ethanol projects under development in the United States
today with a construction value worth an estimated $2 billion, according to
Industrial Info Resources, a provider of global market intelligence in the industrial process, heavy manufacturing and
energy markets.
Iowa
alone will soon see the opening of two large commercial-scale
cellulosic ethanol plants. Cellulosic ethanol is a biofuel produced
from wood, grasses, or the inedible parts of plants. But cellulosic
ethanol is only one type of biofuel. As an investor you want to pick
the right biofuel stock that will keep your portfolio running clean
and green. Pacific Ethanol, Inc. (NASDAQ:PEIX) may be a good pick
for a “biofuel rush” in California.
Pacific
Ethanol
Pacific Ethanol is the leading producer and marketer of low-carbon renewable
fuels in the Western United States. Pacific Ethanol also sells
co-products, including wet distillers grain, a nutritional animal
feed.
Serving
integrated oil companies and gasoline marketers who blend ethanol
into gasoline, Pacific Ethanol provides transportation, storage and
delivery of ethanol through third-party service providers in the
Western United States, primarily in California, Arizona, Nevada,
Utah, Oregon, Colorado, Idaho and Washington. The company has a 91
percent ownership interest in PE Op Co., the owner of four ethanol
production facilities. Pacific operates and manages the four ethanol
production facilities, which have a combined annual production
capacity of 200 million gallons. These operating facilities are
located in Boardman, Ore., Burley, Idaho, Stockton, Calif. and
Madera, Calif. The facilities are near their respective fuel and feed
customers, offering significant timing, transportation cost and
logistical advantages.
PEIX
shares are up 519 percent over the last 52 weeks (Sept. 3, 2013 to
Aug. 29, 2014). This year alone the stock is up 354 percent, closing
Friday at $23.11 per share, up three percent for the day. PEIX has a
52-week low of $2.33 and a high of $23.15.
For
a dividend play we turn our attention to FutureFuel Corp. (NYSE:FF)
in Montana.
FutureFuel
FutureFuel
is a leading manufacturer of diversified chemical products and
biobased products comprised of biofuels and biobased specialty
chemical products.
In
its chemicals business, it manufactures specialty chemicals for
specific customers (custom manufacturing) as well as multi-customer
specialty chemicals (performance chemicals).
Its
custom manufacturing product portfolio includes a bleach activator
for a major detergent manufacturer, a proprietary herbicide and
intermediates for a major life sciences company, and chlorinated
polyolefin adhesion promoters and antioxidant precursors for a major
chemical company. The performance chemicals product portfolio
includes polymer (nylon) modifiers and several small-volume specialty
chemicals for diverse applications.
In
its biofuels segment, the company predominantly produces biodiesel.
FF
shares are down 13 percent over the last 52 weeks (Sept. 3, 2013 to
Aug. 29, 2014). This year alone the stock is down 11 percent, closing
Friday at $13.92 per share, down 0.3 percent for the day. FF has a
52-week low of $13.34 and a high of $22.25.
The
company paid a dividend of $0.25 in November and $0.12 in February,
May and August.
Disclaimer: This
post is provided for information purposes only and should not be used
as the basis for any investment decision. I am neither licensed nor
qualified to provide investment advice. Keith
Stein has no position in any stocks mentioned in this post.
DCNewsroom has no position in any of the stocks mentioned in this
post.
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