maverick

Ethanol Is Oversold: Three Bounce Stocks - Barron's

Ethanol contains about 1/3 less energy than gasoline, it is impossible for your mileage to be greater on 90% ethanol. Grab any chemistry book. These companies are not profitable, that's why so many are being mothballed, closing, or being canceled, some substantially into construction. Just sell the shares before they are worthless. If you force me, I'll open my book and give you the exact energy content numbers. You didn't believe those cold fusion guys, did you?

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.

Increasing Ethanol Demand and the Likely Price Implications for Corn

Acres planted isn't an accurate indicator when you don't know what seed was used. Each year, more of the GM seeds, with higher yields, are planted. You could plant less acres with better seed and end up with a bigger crop. Throw in the weather variable and it's not even worth speculating yet.