Puzzled? I'm not.I have followed this forum since BX IPO'd. I must state that I have the utmost respect for TheRock07 but I respectfully disagree that this is a solid investment.
Firstly, any company that relies on government subsidies has an increased element of risk that is outside the control of the company. Secondly, their cash position has decreased dramatically and consistently since their IPO. Thirdly, even if they had received the Cdn. government subsidy to build the second plant (which they did not), they no longer have the cash to pay for it 100% - they would have to take on debt to fund it entirely (and furthermore their construction costs are misaligned with industry averages). Lastly, biodiesel prices increase lockstep with oil prices... their profitability should increase with higher oil prices.
I have no idea what their next Q performance will look like. In past quarters I was uncomfortable that they were storing biodiesel in anticipation of higher spot prices. The strategy worked for them as it turned out, but these sort of hedging activities can obviously go the other way.
In any event, it always seems compelling to jump into a stock when it trades below its cash value. However I would want some assurance that the business is sustainable.
Take my comments for what they are worth. I have never been a shareholder and frankly won't become one any time soon. Take a look at what US biodiesel facilities can be purchased for. Generally 10 cents to 25 cents on the dollar. BX is unique in Canada. In the US there are a number of biofuels and biodiesel companies that are traded publicly. Furthermore I do not believe that BX's "technology" is unique, contrary to what the spin may be.
I could have called a 50 cent bottom FWIW on this stock a year ago when it was around $1.25 but there wasn't much point. My last dig is on management compensation. Very rich for where the company is at. Recognizing they replaced the prez some time ago...
There are some wonderful references on the web on the biodiesel industry, subsidies, players, and technology etc. if anyone is interested. All the best. retsina