Why Shares of Renewable Energy Group Popped 20.9% in April
Shares of biodiesel producer Renewable Energy Group (NASDAQ: REGI) jumped 20.9% in April, according to data provided by S&P Global Market Intelligence. That went a long way toward erasing the stock's March slump. For the year to date, Renewable Energy's shares are only 6.9% lower.
Generally speaking, when oil prices fall, alternative fuel stocks fall, too, on the assumption that cheap oil is going to lead to less expensive gasoline. When a company looks at purchasing new vehicles for its fleet, the prospect of saving money on fuel can be a powerful disincentive to buy a vehicle that runs on biodiesel or biomass diesel, Renewable Energy Group's two main products.
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Source Fool.com
