BGC 0.00% 0.0¢ bridge global capital management limited

Well to put things into perspective, for the medium term at...

  1. 752 Posts.
    Well to put things into perspective, for the medium term at least, NFL will start by processing Palm Oil.

    Now to get some idea of the value of the shares, we really need to consider how many shares there are and how much Biodiesel they can produce. Near enough, they should be producing one Litre of Biodiesel per share.

    Next you need to consider what sort of margin they would expect to get out of Biodiesel production to justify starting the plants. I would suggest they would expect to make a profit of 10 to 20 cents a Litre to justify production which is equivalent to 10 to 20 cents per share. The value of the shares will depend on the PE ratio the market is then willing to place on this company.

    In the short term, we will need to see how much Gylcerine processing they are doing. The result of this may only be "break even", but it could equate to 5 cents per share at full production with current prices.

    In the long term there is no guarantee that Jatropha will be cheap. I believe that long term it will track Crude Oil prices in the same way that other feedstocks track these prices.

    So Do Your Own Research and, more importantly, Wait For Announcements
 
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