One of our readers mentioned an interesting cellulose ethanol idea to us today, which we’ll describe below. However, given the nature of how we found out about it, it gives us a good reason to remind you that we’re open to your ideas - just send them in.

If you’re simply spamming us to pump a stock you already own, don’t bother…. we won’t post your note, and we’ll probably ban you from the site. If you’ve got a good idea or an interesting argument though, we’d like to hear it.

Anyway, rather than reinvent the wheel, here’s the take on penny stock Bluefire Ethanol Fuels, Inc. (BFRE.OB) straight from our reader….

I suggest looking at Bluefire Ethanol Fuels, Inc.(BFRE), a start-up cellulosic ethanol producer. This company has a patented and proven process for using all kinds of organic waste products and say they can make ethanol for around $1.00/gal. They have an agreement with Waste Management to build plants on or near landfills and sort out the organic waste products for their feedstock (no dependence on the price of corn or other grains).

After declining to $0.51 earlier in the year while two big corn ethanol producers were going bankrupt, BFRE is now establishing a recovery uptrend at $1.17 (1 pm, 5/13). The selling price of ethanol is again moving up in concert with gasoline prices, and there is renewed interest in clean energy funding by the Obama administration. Bluefire already has significant financing from the Bush admin., and is now only waiting for full funding for its first plant to place orders to commence construction. A second, larger plant, is also close to the construction phase, pending funding. Bluefire has huge plans for producing over a billion gallons of cellulosic ethanol in future years as fast as it can obtain funding and/or fund from its own growth once it becomes profitable.

This appears to be a good long-term speculative play on the energy independence plan for our nation.

[name withheld be editor]

ps- I am a chemical engineer and have studied BFRE’s website process details ( use of concentrated acid vs. the less-effecient use of enzymes to extract sugars from cellulosic materials) and believe theirs is probably the most efficient and lowest-cost cellulosic process that has been reported to date.

There you go… the kind of information that could get any of us started down the due diligence path. Our thanks go out to the reader who put these thoughts and info together.

Rather than us picking up the ball and running with it, we’re going to turn this one over to our readers. Does anybody else out there see a particular pro or con with Bluefire? Is there another company that’s doing the same thing, but better? Here’s your chance to speak up.

If you’re not making any real money in the stock market, you need to sign up for the free Micro Cap Press newsletter. We’ll give you the trading ideas nobody else has even thought about yet.