4-Star Small-Caps Poised to Pop: Renewable Energy

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biodiesel producer Renewable Energy (Nasdaq: REGI  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Renewable Energy and see what CAPS investors are saying about the stock right now.

Renewable Energy facts

Headquarters (founded)

Ames, Iowa (1996)

Market Cap

$149.0 million

Industry

Oil and gas refining and marketing

Trailing-12-Month Revenue

$983.5 million

Management

CEO Daniel Oh (since 2011)

CFO Chad Stone (since 2009)

Return on Equity (average, past 3 years)

(1.8%)

Cash / Debt

$88.3 million / $76.7 million

Competitors

Archer Daniels Midland (NYSE: ADM  )

BP (NYSE: BP  )

Imperium Renewables

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 40 members who have rated Renewable Energy believe the stock will outperform the S&P 500 going forward.

A couple of weeks ago, one of those Fools, All-Star BlacknGold, tapped Renewable Energy as a particularly attractive growth pick:

The company has a current production capacity of 212 million gallons per year (mmgy) with another 135 mmgy under construction. Furthermore, [Renewable Energy] is building an impressive distribution network along the country's most important transportation hubs. ...

Wall Street struggles to maintain confidence in [Renewable Energy] for long, as the company is currently constantly tied to the government announcements of the [Renewable Fuel Standard Program]. ... Within the next year or two I see shares of [Renewable Energy] breaking out of their dependency on RFS2 catalysts (although they will certainly help) and appreciating to a much more realistic price that factors in growth, market reach, and feedstock advantages.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Renewable Energy may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Archer Daniels Midland Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On November 05, 2012, at 3:09 AM, lanceim59 wrote:

    REGI has a CAPs rating of 5 stars not 4. Typical foolish mistake.

  • Report this Comment On November 06, 2012, at 10:08 AM, TMFBlacknGold wrote:

    That's because another All Star gave a green thumb on November 5th, the day of your comment. Must have bumped it to 5 stars.

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