BIOX Corp (TSX-BX) Rating Change

Mon, 2013-01-07
Energy & Resources

application/pdf iconbiox-update-report-2013-01-07.pdf

Title: BIOX (TSX-BX) Fresh start for the biodiesel industry; however, long-term outlook remains challenging. BIOX moved from Neutral to Not Rated

Synopsis: On January 1, 2013, the U.S. House of Representatives reinstated the biodiesel tax incentive program that expired December 2011. The reinstatement is retroactive starting from January 1, 2012, and will expire on December 31, 2013, which will provide a short-term boost to the struggling biodiesel industry. Shares of biodiesel producers. Although the news is positive, we believe this is a relatively short-term catalyst for the industry and has already reflected in the share prices. We see the more prominent issue that the industry is the depressed renewable identification number (RIN) price, which makes up a significant portion of biodiesel producers’ top-lines.

Report length: 3 pages (excluding legal disclaimer)

Miller Chu
Peter Fang, CFA