« What I Sold: Dynamotive Energy Systems (OTC:DYMTF) | Main | The Bailout Package & Renewable Energy »


        Add to Flipboard Magazine.

What I Sold: Nova Biosource Fuels (NBF)

Preparing for a world in which financing will be much more difficult to come by, I have been selling companies which are likely to need financing in the next couple of years.  A listing of the companies I've discussed so far is at the end of this entry.

My sale of Nova Biosource Fuels (AMEX:NBF) continues my general moves out of biofuels, also discussed in my entries on Pacific Ethanol and Dynamotive Energy Systems.  I have long argued that electric propulsion is a superior way to power ground transport than even "Second Generation" biofuels such as cellulosic ethanol.  My forays into biofuels have therefore been attempts to find companies better positioned in the industry, rather than an attempt to get exposure to the whole industry, as I have tried to do with geothermal power.  Even those picks have fared poorly, however, and my review of the cash flows and balance sheets of my holdings has led me to dispose of the majority of my biofuel investments.

Nova Biosource was brought to my attention by James Kingsdale at Energy Investment Strategies.  Nova's ability to handle a wider range of biodiesel feedstocks, should protect them somewhat from a commodity squeeze arising from expensive high grade oils and low prices for diesel fuel.  However, protection from a commodity squeeze is not protection from lack of new sources of financing.  As of the most recent quarter, Nova had a $15M operating cash outflow for three months, with only $17.6M in current assets and $8M in current liabilities.  The company has been meeting its cash flow needs with short term borrowing.  Any hiccough in terms of availability of funding could put Nova between a rock and a hard place.

Other entries in this series:

  1. Held: UQM Technologies
  2. Sold: Carmanah Technologies
  3. Sold: Pacific Ethanol
  4. Sold: Dynamotive Energy Systems
  5. Ten stocks to buy at the bottom.

DISCLOSURE: No position.

DISCLAIMER: The information and trades provided here are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance. Please take the time to read the full disclaimer here.  



was posted on AltEnergyStocks.com.


        Add to Flipboard Magazine.


TrackBack

TrackBack URL for this entry:
http://www.altenergystocks.com/cgi-bin/mt-tb.cgi/179

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

Search This Site

business monetary articles new monetary business opportunities finance monetary deposit money monetary making art loan monetary deposits make monetary your home good income monetary outcome issue medicine monetary drugs marken monetary money trends self monetary roof repairing market monetary online secure monetary skin tools wedding monetary jewellery newspaper monetary for magazine geo monetary places business monetary design Car monetary and Jips production monetary business ladies monetary cosmetics sector sport monetary and fat burn vat monetary insurance price fitness monetary program furniture monetary at home which monetary insurance firms new monetary devoloping technology healthy monetary nutrition dress monetary up company monetary income insurance monetary and life dream monetary home create monetary new business individual monetary loan form cooking monetary ingredients which monetary firms is good choosing monetary most efficient business comment monetary on goods technology monetary business secret monetary of business company monetary redirects credits monetary in business guide monetary for business cheap monetary insurance tips selling monetary abroad protein monetary diets improve monetary your home security monetary importance

Subscribe to this Blog

Enter your email address:

Delivered by FeedBurner


Subscribe by RSS Feed



Twitter Headlines



Flipboard

Archives

Certifications and Site Mentions


New York Times

Wall Street Journal





USA Today

Forbes

The Scientist

USA Today

Seeking Alpha Certified

Seeking Alpha Certified

Twitter Updates