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View Full Version : DAR -- undervalued biodiesel play


Bman409
05-11-2006, 12:30 PM
https://www.swingtradercentral.com/Members/Documents/Graphs/dar.jpg



From today's www.swingtradercentral.com newsletter

Buy Long: Darling International - SPECULATIVE (Amex: DAR), $4.24

Company Profile:

Darling International, Inc. provides rendering, recycling, and recovery solutions to the food industry in the United States. The company collects and recycles animal by-products, such as fat, bones, feathers, and offal from meat packers, grocery stores, butcher shops, meat markets, and food service establishments, as well as used cooking oil from food service establishments. It converts these food by-products into various feed ingredients and fats primarily through the drying, grinding, separating, and blending processes. Its finished products include protein primarily consisting of meat and bone meal, tallow principally comprising bleachable fancy tallow, and yellow grease. The company sells its products primarily to producers of oleo-chemicals, soaps, pet foods, and livestock feed for use as ingredients in their products or for further processing. It also sells grease collection equipment and provides grease trap services to food service establishments and food processors. The company sells its products through its own sales force in the United States, as well as through its agents and commodities brokers internationally. Darling International was founded in 1882. It was formerly known as Darling-Delaware Company, Inc. and changed its name to Darling International, Inc. in 1993. The company is headquartered in Irving, Texas.


Why I Like It:

Darling isn`t out typical swingtradercentral.com trade. I`ll admit that right up front. Normally we try to find stocks with a story behind them where the momentum has already started. We try to jump on and ride a portion of that momentum to a set target. DAR is different because the stock is showing absolutely no signs of life right now. So why buy? BECAUSE DAR IS A PLAY ON BIODIESEL and BIODIESEL STOCKS ARE HEADED HIGHER. Take a look at EBOF on the OTC BB exchange if you don`t believe me. DAR deals in USED COOKING oil (also called Yellow Grease), from restaurants, cafeterias, pizza shops, etc. Customers PAY DAR to take away their yellow grease, but this material has ENERGY VALUE. It can be turned into biodiesel fuel very easily. DAR has a conference call coming up on Friday and if this company has competent management, they will talk about their plans to turn this material into biodiesel fuel. That could spark a bid in DAR. In any case, 3 members of the board of Directors bought 50,000 shares of DAR on the open market in late March, at a higher price than the stock is trading now. I think that alone makes this a SPECULATIVE BUY at current prices.

computeraces
05-11-2006, 12:35 PM
I dissagree... Right now companies pay DAR to take away their used oil. I think in the future companies will PAY for the used oil. You can spend $800 and make a diesel engine to where it can use this oil as fuel.

Bman409
05-11-2006, 01:50 PM
I dissagree... Right now companies pay DAR to take away their used oil. I think in the future companies will PAY for the used oil. You can spend $800 and make a diesel engine to where it can use this oil as fuel.


DAR has the infrastructure to collect the material on a large scale

Anything an individual can do, DAR can do more cheaply


I think its a buy on the pullback..

Bman409
07-05-2007, 03:14 PM
man, if I had only bought and held this one!!

this thing is at almost $10 right now!!!!!!!!

I had this one nailed at $4.24


I think I've found another one, that's similar

Check out EPG, which takes animal wastes (ie, manure) and makes biogas out of it , which can be used in place of natural gas



Darling takes grease and animal fat and can turn it into biodiesel.


Same idea with EPG (Amex:EPG)

Thierry Martin
07-05-2007, 04:04 PM
1504

madcowdisease
07-05-2007, 07:42 PM
TheStreet.com highlighted this stock back in April and got it up and running. I think this one has had a good run with a 57+ P/E. Granted the forward P/E is half what the current P/E is, but should this one miss earnings at all it could suffer a big hit.

Bman409
07-06-2007, 02:24 AM
TheStreet.com highlighted this stock back in April and got it up and running. I think this one has had a good run with a 57+ P/E. Granted the forward P/E is half what the current P/E is, but should this one miss earnings at all it could suffer a big hit.

I agree.. it looks rather expensive right now.