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Beware of the Allure of Ethanol Investing

You were not alone in scepticism about Verasun's IPO
tinyurl.com/6r5cw2

On first days trading the shares soared to US$30 a rise of 30%.

"This puts a value on the company of 200 times its annualized earnings from the March quarter 2006. Compare that with (say) 50 for Google.

Ethanol either from corn, sugar or so called biomass, is expensive, it has less calorific value than regular gas and is simply another method of keeping Iowa / Indy Congressmen and their constituents (briefly) happy.

Ethanol has been a hucksters paradise.

The best way to invest in ethanol is to buy a bottle of Wild Turkey.