I would dearly like to chat today about the profound dangers of embroidering tartiflette with excessively strong reblochon - even if a powerful and not entirely subtle Pic Saint Loup is to hand to restore some semblance of edibility to the result.
However, given the nature of this blog, I ought to find some non heavy-handed way of paralleling this saving-of-a-meal-by-a-blunted-as-a-result-red with the large fiscal stimuli coming on stream in 2010 with a vengeance (aimed at saving us from the hole in the Credit Machine dadidadida ad nauseam). Screw that.
More interestingly, hopefully, is a growing conviction that the synthetic fuel maker, Syntroleum, will break out successfully of its historic consulting role to become the first US producer of a non-food, residual-based superior biofuel.
Educated guessing a valuation based on Chinese peers (not truly apples to apples) could, improbably, extend to decimal places. More appropriate data (perhaps) is the company's forecast operating cash flow from next year: $15m-$20m provided crude averages higher than $60/barrel.
Add some conservative capex assumptions and that suggests a free cash yield of at least 4% - though I would suggest 'realistic optimists' could argue a ratio that approaches double digits.
Overweighting the existing holding by 50% at open.
Post script (1): additionals purchased @ $2.75 (2) WNC closed @ $2.77 for technical reasons.
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