Ekaterina Zelenkova

BioFuel Energy Corp. (NASDAQ:BIOF) Stock Rushed By Non Company's News?!

by Ekaterina Zelenkova July 16, 2010
BIOF_price_chart.jpgYesterday, BioFuel Energy Corp. (NASDAQ:BIOF) stock suddenly spiked up 31.67% as it seemed like the Congress allowed the subsidy for bio diesel, to expire after two years.

Except announced yesterday election of the new independent director of BIOF, who has excellent professional background, the company has not seen news since mid May. Then, financials of BIOF for the first quarter of this year were announced.

On the background of the overall declining shares in the bio fuel industry, resulting by the facts that the federal subsidy of $0.45/gal for domestic ethanol is set to expire at year's end and the increase of prices of the row material for biofuels, BIOF stock surprised pleasantly its holders with strong rush.

Seems, that yesterday the financial and leadership experience of the new member of the board of directors, for both private and public companies within the information technologies, telecommunications, and directories industries, in addition to BIOF stock price jump, inspired a more than six times the average volume traded.

BIOF_from_the_site.pngAt the same time, shares of BIOF's competitor, Verenium (VRNM) also exploded 30.08%. As opposed to BIOF shares, VRNM stock was rushed on the news, that BP plans to buy its cellulosic bio fuels business for $98.3 million.

Yesterday, BIOF stock after strong surging closed at $1.58, being in sight of investors at scale of interest, comparable only to this from the end of March, when the bearish shooting star confirmed the downward direction of shares.

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