maverick

Ethanol Is Oversold: Three Bounce Stocks - Barron's

First of all, these companies are NOT profitable. Most are losing money, nobody does better than break even, all hoping the price of corn will drop. Well, it won't. It is in fact headed higher, and a wet Spring in the midwest suggests a lot higher. Much of the corn has to be replanted, and for those that do, the yield won't be very good. Many will replant, but not with corn, they'll switch to soy. There probably aren't any shares left to borrow, but these stocks are headed for bankruptcy.