How to Invest: BioFuel Crushes it with 533% Returns

by Monday, September 29, 2014

Top 10 NASDAQ Giants

The NASDAQ Composite Index has made amazing recovery from the 2000 stock market crash when the dot-com bubble burst, to out-perform the S&P 500 Index of the largest U.S. stocks this year.

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The abridged index now consists of 2500 stocks and is more diverse, with tech stocks making up just 44% of the index. In fact tech stocks are not even the top bets this year. Technology investments end up unused, surpassed by competitors, & not needed anymore. FLOP Tech investments are also notorious, for being here one day gone the next.

Biofuel is number One

BioFuel Energy Corp. has been sending the same message since years ago, becoming the stock that they are. BioFuel surged 132% on March 30, 2014 after it received a proposal from Greenlight Capital and James R. Brickman to acquire JBGL Capital LP and certain subsidiaries of JBGL Builder Finance LLC. Post the deal on June 10, valued at $275 million, Greenlight Capital owns 49.9% stake in BioFuel, up from its earlier 35.4% stake and Brickman holds 8.4% stake.

The NASDAQ Composite Index has made amazing

Big gains come with big risks, as these are based on speculation. Who would want a 533% return anyway. It would be interesting to look at stocks with lowest forward price-to-earnings ratios.

While a low forward P/E could imply grave issues with the company or even the entire subsector, it could also hint at a potential winner being ignored by investors. However, it is a good base to start researching the company for investment.

Stocksnapper / Shutterstock.com Image Credit.

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