GET READY TO ROCK and ROLL

The SkunK pulled out this paragraph since I think it may have an obvious impact on investors - both old and new:

"We find it notable that GE, which has been under a great deal of financial pressure itself, elected to make a sizable investment in this area and chose to work with a tiny company such as GreenShift."


CEOCAST Newsletter
SPECIAL SITUATION: Greenshift (OTCBB: GERS) $0.042
In a difficult environment such as the one which we are currently in, good companies with sound business plans often begin to fall through the cracks and are presumed dead as they struggle to find capital, even though there may be nothing fundamentally wrong with the business. One such example is GreenShift, a company that develops and commercializes clean technologies that facilitate the efficient use of natural resources. Despite having a fundamentally sound strategy in a rapidly emerging market, the company’s resources all but dried up as capital markets seized up in recent months, resulting in the company’s stock trading as though it was going out of business.

In recent weeks however, as things have begun to stabilize, GreenShift has seen an influx of capital and shares have begun to surge accordingly. Just last week, the company announced the formation of a joint venture with GE Energy Financial Services and an institutional investor, which has served to breathe some life back into the beaten down shares. Under the terms of the agreement, the newly formed subsidiary, CleanBioenergy, will invest up to $38 million in GS NextDiesel – a newly formed GreenShift subsidiary - to help deploy twelve new corn oil extraction facilities across the country and double the capacity of GreenShift’s Michigan-based NextDiesel biodiesel refinery from 10 million gallons per year to 20 million gallons per year. We find it notable that GE, which has been under a great deal of financial pressure itself, elected to make a sizable investment in this area and chose to work with a tiny company such as GreenShift.

GreenShift’s biodiesel production model is based on the integration of its patent-pending corn oil extraction technologies into corn ethanol production facilities to extract crude corn oil from distillers grain, a co-product of ethanol production. The crude corn oil is then transported to the NextDiesel refinery in Michigan for processing into biodiesel. GreenShift installs its extraction technologies at its expense and then purchases the extracted oil for a price that is indexed at a discount to the price of diesel fuel. This hedges GreenShift’s biodiesel production margins and provides important benefits to participating ethanol clients, including increased revenue, decreased financial risk, and enhanced biofuel yield from corn, in addition to reducing the carbon emissions resulting from production. The company’s extraction technologies are currently in use at four corn ethanol plants in Michigan, Indiana, New York and Wisconsin, with plans to deploy at a number of additional U.S. ethanol plants thanks to their newly formed partnership.

The company believes that their newly formed joint venture will give them the resources they need to scale their corn oil biodiesel model into sustainable profitability, and with net revenues of over $24 million for the first three quarters of this fiscal year and with a market capitalization of less than $10 million, investors may well be able to get into a company that is positioned to grow rapidly at a substantial discount. Shares may continue to rebound due to the influx of capital and increasing global demand for biodiesel, while the company is set to capitalize on its increase in production capacity thanks to this newly formed joint venture. As markets continue to stabilize, commodity prices may rebound to their pre-crisis levels, reemphasizing the need to commercialize a better, more sustainable type of energy production: with this new funding and plans to expand production in place, GreenShift seems extremely well-positioned to capitalize on the growing demand for alternative fuel production.

http://stockreads.com/Stock-Newsletter.aspx?id=6161

SkunK