Here's Why Renewable Energy Group Is Plunging Today
Shares of Renewable Energy Group (NASDAQ: REGI) fell as much as 24.7% today as global markets reacted to the crude-oil price war between Saudi Arabia and Russia. While the company is a leading provider of biomass-based diesel, the selling prices of biodiesel and renewable-diesel fuels are largely determined by the price of petroleum-based diesel fuel.
For what it's worth, the business received a net cash benefit of $499 million in the fourth quarter of 2019 due to the retroactive reinstatement of federal tax credits supporting biomass-based diesel. That could be enough to cover operations for a year or two in a worst-case scenario, although the company has more pressing needs.
As of 1:37 p.m. EDT, the small-cap stock was down 13.9%.
Source Fool.com
