Monday, June 11, 2007

Update LTD NBF

Today I added more to my long term holdings of NBF. The stock is in an apparent free fall, moving from $3.00 to $2.50 in a little over a week. While this kind of price movement is totally against my trader mentality, the investor in me believes the long term prospects significantly outweighs short term volatility. In my opinion NBF is a complete steal under $2.50. If price continues to deteriorate, I might be forced to use my margin buying power until I can flush my account with fresh capital.

Below is a recent publication from the Wisconsin State Journal, highlighting one of NBF's third party bio refineries, due for completion in late June.

Production at the plant, which has a capacity of 20 million gallons per year and sits on a 3-acre lot on the north side of DeForest, has been low as it tests its equipment. But Read expects the plant to produce 60,000 gallons per day by the end of June.

n other action I ended up buying some LTD July $25.00 put options today for $.40. While this puts me at odds with a recent Barron's article, I feel that short term volatility, weakening technicals and strengthening bond prices favor near term bearish sentiment.

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