New Earth initiates coverage of BlueFire with "speculative buy" rating

December 16, 2010 |

In California, New Earth Capital Group initiated coverage on BlueFire Renewables and rated the company a “Speculative buy”.  “After 3+ years of development, BlueFire appears to have secured the various elements necessary to secure financing for its first commercial-scale biorefinery: permits, DoE grants, EPC contract, feedstock agreement, and off- take agreement. BlueFire’s stock price has rebounded from a recent low of $0.05 on news of the various agreements. In our view, the stock has yet to fully reflect the company’s significant progress.

In addition, selling pressure on BlueFire shares may be tailing off, as a former owner appears to be done liquidating a sizable position. The company’s share price declined sharply through the summer, partly due to consistent sales by former owner David Gelbaum (and his Quercus Trust), who owned as much as 15% of BlueFire at the peak.

A copy of the New Earth report is here.

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