Wednesday, October 17, 2007

Our D1 Oils (Jatropha) Play Jumps 21%

Yesterday, despite the punishing markets, our play on the coming jatropha biofuel revolution - D1 Oils (DOOIF.PK) - jumped from $3.75 to $4.55 in a single trading session.

That's a nice 21% pop.

But why? Why would this happen to teeny-tiny, British D1 Oils on a day when the rest of the markets were taking a giant poop for the second straight day?

Why D1 Oils Is Looking Very "Slick"

In my humble opinion, D1 Oils shot up yesterday *not* because the entire world suddenly fell in love with jatropha, per se. (Jatropha, of course, is the biofuel-bearing weed that D1 Oils is cultivating around the world to the tune of 1 million acres over the next 5 years.)

Instead, it comes down to oil prices.

Yesterday, crude oil continued to surge... big time. It's pushing $88 a barrel, an historic high to say the least.

As Crude Oil Gets Pricey, Jatropha Makes Even MORE Sense

The higher oil gets in price, the more jatropha's apparent solution to the energy problem becomes more obvious. In other words, expensive oil means jatropha gets more econonomical to farm and produce by comparison.

Knowing this, speculators are likely to pile into D1 Oils the higher crude oil gets.

That's part of the reason we added D1 Oils to our Evergreen Portfolio in the first place:

Meanwhile, the global economic expansion continues forward, led by India and China. With all that expansion, we'll continue to see increasing demand for fuels and commodities. And with biofuels taking center stage as the leading alternative to oil and gasoline, D1 Oils stands to benefit over the long haul.

Let's hope this little pop in shares is just the beginning of a very long runup for our favorite jatropha stock... Hell, this is the ONLY true jatropha stock on the planet right now as far as I know.

If you know of another good jatropha play for green stock investors, please let us know.

Meanwhile, good trading,


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