The main activity of Biofuels is the large scale production and exploitation of biodiesel and glycerine following the construction and commissioning of the initial plant.

Biodiesel is produced from vegetable oils and, as an environmentally friendly product, can make a significant contribution towards reducing green house gases and meeting Kyoto targets.



RNS's from BFC can be viewed at:

http://www.uk-wire.com/cgi-bin/index?search_type=3&words=bfc&go.x=17&go.y=8

http://www.biofuelscorp.com/

Glad you've seen it, Bones. I'm no fundie so interested in your analysis.

It looks more of a rumour to me, at present, and the fact CSCS have been desperate to keep a lid on the rise this week makes me suspect they want it down to allow someone in cheaper. If it does go ahead, then I suspect it will be placed very easily indeed.

Pays to check news even after Friday's close! ;-))) Sad, but true

Since they want it, presumably, for positive expansionary needs, this has to be a positive move for mid to long term holders. They will have to put up a good case to convince the placees, which should be a good enough case for us to want to stay in and even add at any dip on the discounted placing - anyone expect a partial rights issue to be on the cards? - 'd be nice.

SD

AL, you are right it will be placed very easily indeed . Met someone this weekend who is quite happy to take at least 50% of the placing.....My eyes are still out on stalks:-)

From Saturday mail.......

BIOFUELS AIMING TO LIFT SPIRITS-investment extra by Brian O'connor

You could, of course stay at home and make your own diesel out of vegetable oil. This is the game plan at Biofuels Corporation which enjoyed some 'animal spirits' this week, soaring 53p to 258.5p to value it at 75 m.
The rise was on an 'illustrative projection' of 30 mill a year profits from its first factory. Since it could build 5 more plants, excited punters multiplied 30 m by 6 and rushed to buy.
The factory will not be built untill july. It needs funding, so a share issue looks imminent.
Diesel from vegetable oils is very costly and needs big tax breaks to be economic. Several firms already make it using rape seed oil.
Biofuels aims to use palm oil, which is cheaper but attracts flak from 'greens' over deforestation.
Diesel for cars is only allowed to contain 5% 'biodiesel' so the market is limited.
Biofuels could still be worth a punt. It has hired good managers, but competition abounds, so do no get overexcited. Running with the bulls is fun, but keep an eye on the exit.

Jules - interesting. Your messaging isn't activated - mine is! ;-))

Dailos - very true and thanks for spotting it. I've checked a few newspapers over the weekend and found little. Happy to run, but aware it's driven by newsflow.

Jules, this chap who will take 50% of a placing himself given the chance, is it because the price is favourable (eg 200p) or because it's worth having at any price? Whatever, it sounds like a good bullish phase is approaching. That's fine by me with my holding :)

Dailos - am puzzled by your statement "Diesel for cars is only allowed to contain 5% 'biodiesel'".

I thought EU and UK directives were aiming for 20% by 2008 or something, Who is limiting the biodiesel content currently? Don't think this is right. Please state source.

SD

stockdog
I aint got a f*cking clue! just copied and pasted an article sent to me as part of a roundup of weekend press stories, this one from Brian O'Connor by the looks of it.
Have reduced BFC holding, but still quite long.
d.

Its possibly correct. Petrol and diesel rules vary from country to country. They might be standard for the EU. The rules define limits for various parameters, eg flash point, autoigntion temperatures, boiling points, maximum amounts of certain chemicals, etc. It could well be that a main chemical is biodiesel currently has a limit on it to ensure a quality parameter of diesel is okay.
If you accept that you are getting a different product, then there should surely be different rules. As a buyer of petrol (for example), I wouldn't want it thinned with alcohol like the American gasoline - alcohol contains oxygen and that is in the air, so why pay to fill my tank with some? On the other hand, if I was buying biodiesel on ethical grounds - forget the deforestation for a moment - then I'd want 100% surely. Another reason for these rules is for example too much lead in the old petrol might leave deposits, too much sulpher can lead to bad emissions, octane ratings in petrol and cetane ratings in diesel should be okay. Odd stuff in the fuel can corrode fuel lines. Other things can affect the freezing temperature of the fuel.

I dont know! All I'm saying is there might easily be an existing limit on diesel which restricts the content of biodiesel in diesel. Whatever the case, 5% of the market is big, and we can surely expect the limit to change, or biodiesel to be marketed as a separate product with its own rules.

I too would appreciate a reference for the 5% remarks!

=

I don't think a biodiesel company should set out to make 6 refinaries.
I think they should start by refining to prove it works, and then buy a source of the bio-product, otherwise the price of the organic material will be beyond their control. Hedging is a short term strategy, like car insurance. Crash your car and the insurance cost goes up. How long can BMW hedge their $€X rate? Long term it doesn't work. Hedging stabilizes something volatile, but it doesn't cure a trend. Once you have source and refinary you can play around with quantities to maximze profit while limiting risk, but they should have a foot in both doors.

Thanks, crystalclear - interesting thoughts.

Still asking myself the price differential (mid to long term) of locally processed jatropha beans versus transported palm oil.

SD

Why is BFC moving down whilst DOO is moving up?

>> hlyeo

What makes you think they should always move in the same direction?

BFC is settling back to a new trading base, whilst DOO which got to its peak earlier is now exploring a gentle rise off its new base.

Both should be a constant opportunity of buying in the dips, and even trimming at the peaks if you can spend that much time watching, over the course of the year until they start producing a regular cash stream when they will probably become less volatile.

Their principle difference will remain that BFC is a hardware company, building plants, but not growing them, whereas DOO is more a software company growing the plants, but not investing in building them. The latter get the edge in my estimation by JVing on the plant (construction that is).

My favourite plant is of course the dog rose.

SD

And of course neither stock is a dog...eh SD.

rgrds
gk

The cat's whiskers, definitely! gallick.

oh dear !

Where are they going?http://bfc

Don't ASC me! Looks like a really good dreary down-hearted day to BUY more.

SD

Grabbed some more at 230p. ;-)

Cashed them in +8