FutureFuel Corp. (FF), Renewable Energy Group Inc (REGI): Buy This ‘Gasoline Killer’ For A Shot At Triple-Digit Returns

Despite an upward EPS revision in the past 30 days from $1.10 to $1.34 — an increase of 21.8% — FF is only up 5.8%. This price disparity suggests that the full potential in FutureFuel Corp. (NYSE:FF) has not been recognized by Wall Street, keeping the stock at a discounted value. Momentum in the stock should keep the uptrend going as the 20-day moving average continues to widen the gap from the 50-day average.

Risks to Consider: The biofuel industry is reliant on the continuation of the federal RFS2 mandate, which, while recently renewed, is still subject to political changes. In addition, Future Fuel’s small operations are highly dependent upon tax credits, the loss of which could cause a discontinuation of biodiesel operations.

Action to Take –> Based on FutureFuel’s earnings history and growth expectations, the fair value of the stock should be between $23 and $34, a gain of up to 103%.

P.S. — FutureFuel is far from the only company doing well with alternative fuels. In fact, one tiny company is poised to kill the gasoline engine. Deals are already quietly being made with top automakers. Billions are being invested. For more on how this company could change our way of life — and make you triple-digit gains in the process — click here.

– Daniel Cross

The article Buy This ‘Gasoline Killer’ For A Shot At Triple-Digit Returns originally appeared on StreetAuthority and is written by Daniel Cross.

Daniel Cross does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.