y2kurtus

VeraSun Energy:Buyout Candidate, If Obama Wins

The only problem with this thesis is that over the long-term no company will ever be able to profitably turn corn (the grain) into fuel ethanol. There are lots of companies who do profitably produce ethanol from corn but that's because they sell it for $10 to well over $100/ gallon. If you don't belive me on that here are some ticker symbols to do some research on DEO, FO, STZ.

If you want to profitably make ethanol for fuel you must use a feedstock that is an ORDER OF MAGINITUDE cheaper than corn. Sugarcane works already, (just ask CZZ) and optimistic scientists seem to think wood chips or corn stover (corn stalks and husks) are only a "few years" from commercial viability. Time will tell what will work in the long term but the only reason it ever looked reasonable to turn grain into fuel was because of goverment crop subsidies that were as foolish as they were massive.

Toyota, Honda, and T.Boone Pickens look to have it just about right.

-y2kurtus