Surandy,I guess there are so many factors effecting the NFL...

Surandy,

I guess there are so many factors effecting the NFL share price, even beyond the obvious factors such as Palm Oil price and Crude Oil price.

At present most of the Biofuel companies listed on the ASX have yet to prove themselves and many are presently trading at about 25% of their original float price. If one of these drops or rises in price, the others are likely to follow.

The one Biofuels company that seems to be doing well is Mission Biofuels. Like NFL and SBI they seem to have lots of money in the bank even if much of that is due to a recent Convertible Notes Issue. One that has done very poorly is ABJ which is one of the tallow based companies. A "7 for 3" rights offer certainly didn't do much for their share price.

As for the others, Agri Energy is the first company that should be giving us a real indication of how these new Biofuel companies are likely to perform. Agri Energy's Beatrice Biodiesel Plant is due to come on line in Nebraska this month.

Another important factor is the Federal Governments support of the Biofuels industry. In short, in Australia, there really isn't any. We have a Biofuel target of 350 million litres a year. The US has a target of 35 BILLION gallons of Biofuels by 2017. A change in Government in Australia could have a huge impact on the future of the Biofuels industry.

The third factor is the possible benefits from Carbon Credits Trading. NFL have recently mentioned this in an annoucement, as have ARF.


You may be right that the NFL share price could fall further. I still have a buy order open at 32 cents. 2008 is when the NFL plants in Singapore are due to come on line and that is when we should see some positive share price movements.