Friday, August 22, 2014

Beach Boys Revamp

Over the months we have added a number of companies to our Beach Boys Index of companies using the power of the sun to create alternative fuels and chemicals.  There was considerable change in all groups as some companies threw in the towel and others took their place in the competition.  Importantly, all the groups in the Beach Boy Index increased in numbers, suggesting that alternative energy has been firmly established as a sufficiently viable sector to attract both human and financial capital.   

Upfront in the Beach Boy Index are the algae cultivators, a group which seems to have missed the memo circulated a couple of years ago that algae are not reliable enough to produce renewable fuels.  New on the list are Cellana, Alvigor and Bioalgene among several others. 

Ethanol producers still abound even after sector consolidation. We added Pine Lake Corn Process and Riazen to the Ethanol Group and Qteroo, Viaspace and Virdia among several others to the Cellulosic Ethanol Group. 

The Biofuel and Biodiesel Groups have also seen a bit of change as we lost a few developers.  However, both groups grew in numbers as others developers like Arisdyne Systems, Blue Sun Diesel, Proterro, and Methes Energies International reached our criteria.

With the tremendous pressure on alternative fuel producers to reduce costs and compete effectively with fossil fuel, it should be no surprise that there has been growth in the number of companies trying to use waste materials for biofuel production.  New additions to the Waste-to-Energy Group include Licella Pty., Terrabon, Agilyx and Blue Sphere Energy.

Some of the advanced biofuel producers simple gave up on economical fuel production and diverted their technologies to bio-chemicals instead.  The market is hungry for renewable chemicals and profit margins are typically attractive.  We added GlyEco, Agrivida, Verdezyne and Green Biologics to our Alternative Chemicals Group.

Please visit the Crystal Equity Research website for the complete Beach Boys Index.

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.


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