Forbes.com notes that the general economic malaise is affecting share prices of several of the top ethanol companies. Aventine Renewable Energy Holdings (AVR) plummeted to its lowest share price ever on Monday, bottoming out at $1.93 before climbing slightly to close at $2.10. Pacific Ethanol (PEIX) dropped 15.6% to close at $1.08, while VeraSun (VSE) dropped 12.4% to close at $1.84.
Even agribusiness giant Archer Daniels Midland (ADM) was not immune from the slump, falling … Read the rest
Pacific Ethanol, which posted a second quarter loss of 2.2 million, is attempting to purchase Phoenix Bioindustries and its ethanol plant in Goshen, CA. If the deal goes through, this will put Phoenix in control of the first ever corn-to-ethanol plant in California. Currently, Pacific Ethanol is only involved in distributing ethanol. The purchase of the plant will allow them to break into the far more lucrative production channel, with average profit margins of … Read the rest
According to StreetInsider.com, Soleil Securities downgraded BioFuel Energy (BIOF) to Sell citing the company’s need for additional debt in order to cover hedging losses and construction costs.
They also reiterated their sell rating on Pacific Ethanol (PEIX) and lowered the price target to 1.50 from 2, saying “the outlook remains weak given the forecasted ehtanol environment and their debt heavy balance sheet. As we are modeling negative margins going forward, we do not anticipate … Read the rest
Pacific Ethanol (PEIX) reported a big loss this morning of .23/share, much larger than the .12/share loss analysts had been expecting as soaring corn prices eroded profits. Revenues came in on the light side as well at 198 million, vs the estimate of 206 million
Shares are down more than 15% this morning and the stock is once again trading below the 50 day moving average.… Read the rest
James Altucher of TheStreet.com posted an article this morning highlighting 6 alternative energy stocks that could go to zero. He likens the green stock mania to the dot com bubble and to some degree he’s right. There is one important lesson in all of this: stick to companies growing rapidly and decreasing debt with strong technical indicators and you won’t get burned. Simple as that.
The six he highlighted are :
Verasun (VSE), Capstone … Read the rest