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VeraSun's Corn Costs - Another Bearish Sign for Ethanol Stocks

Please explain: "The fact is that VSE's pricing structure is capable of absorbing the rising cost of corn and keeping their margins inside a band."

And no I am not shorting any ethanol stocks. If you haven't realized, the ethanol sector has been in a crap hole for quite some time now. The incentive to invest in this sector is minimal as all I'm doing is stating the facts.

VeraSun's Corn Costs - Another Bearish Sign for Ethanol Stocks

All I'm doing is estimating VeraSun's corn costs for the first quarter. In the most recent conference call, VeraSun stated that corn should be in the range of $4.45 to $4.55 per bushel but it looks like they underestimated. VeraSun did this before, I believe in its second quarter conference call, when they estimated corn costs to be in the $2.90-$3.00 range for the third quarter but in actuality they ended up paying an average of $3.32. This news isn't good to hear.