FutureFuel: Recent Operating Challenges Create Potential Buying Opportunity

Summary

• FutureFuel Corp. has seen a 28% stock price decline since January, largely due to market tensions and a rough Q4.
• Despite the decline, FF's high cash balance relative to market cap presents a buying opportunity for risk-tolerant value investors. Its enterprise value has dropped by half during this time.
• FF's diversified revenue streams and stronger balance sheet set it apart from peers in the biofuel industry.
• I expect another poor quarter in Q1 2025 due to a halt in production, but that could be the start of a turnaround in the stock price.
• I will be waiting for Q1 results to be released, then reassess a potential investment at that time.