I've been watching the D1 Oils story unfold over the last week. To sum up, the company is suffering from;

i) Negative sentiment in general concerning the marginal effect of biofuels to reduce carbon and the negative environmental consequences of growing crops for fuel at the expense of say, virgin tropical rainforest. Clearly, it's not fair for D1 to be bracketed with other biofuels, because unlike other biofuel producers, D1 Oils' crop is jatropha and can grow just about anywhere, even wasteland at very low environmental cost.

ii) As I just mentioned in my newsletter (have you signed up yet? You should, it's free !) D1 is struggling to compete with US importers of Biodiesel who have been able to exploit a double subsidy through a regulatory loophole. This loophole will be closed by the beginning of next year under the terms of the new US Energy Act - so theoretically, isn't there light at the end of the tunnel?

iii) A highly adverse reaction to plans to cut the workforce by 30% announced last week.

iv) Yesterday's resignation by Karl Watkin - followed by his stormy remarks attacking the City - that's what I call ill-advised - where's the upside of laying into a community who may be helpful to you in the future and have already helped you until now?

And so, just moments ago, I gather from Reuters, that Karl Watkin may be preparing a buyout bid. to take advantage of a record-low share price and a global commodity boom.

Definitely a stock to watch - let's see what happens . . .