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bm1087
20 Comments
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Pacific Ethanol: Juicy Details From Tuesday's 10-K
For example, here’s a quote from a press release from a startup: "The failure of corn-based ethanol stocks spotlights the contrast between Gulf Ethanol and it competitors. With corn at $5.64 per bushel, we can get cellulose at $45 per ton," noted JT Cloud, Gulf's President. "Our feedstock costs will be about $0.45 per gallon while existing producers' feedstock costs are near $2.00 per gallon. That revolutionizes the economics of ethanol and makes Gulf ethanol a great contrarian play to corn based ethanol stock," he concluded.
So it looks like the news can’t get any worse for corn ethanol, and it just so happens to coincide with the commodity bubble ready to pop. Are we at a bottom? It’s really a shame that guys like Herb loath the industry so much, because our foreign oil policy is a joke.