Ethanol Stocks Tumbling
With all the anxiety over inflation, not even declining oil ($68.51 a
barrel) and gold prices (568.6) could correct the Markets bearish week.
The declining oil prices though, still had as usual a negative impact
on the ethanol sector. Recap of Today's Ethanol Index:
Today's results are a culmination of what has been occurring in the past weeks. Oil prices have declined (due partially to the death of Terrorist Abu Musab al-Zarqawi) , and analysts have been questioning the current status of this industry (A turn around in either of the two can still have a large impact on these stocks). Has the speculation dried up? Has the miniature bubble popped? Companies, such as PEIX, have to start proving its shareholders worthy of buying its shares. PEIX, one of the largest gainers since Bush's State of the Union Address has yet to produce one gallon of ethanol. Currently, its reasonable to say its all hype and potential. Lets take a look at the graph below:
It's been a difficult week as summarized by this graph. On a more optimistic note, some speculation which can correct these stocks of their recent decline is the IPO of the three ethanol companies: VeraSun, Hawkeye Holdings and Aventine Renewable Energy. Depending on the outcome of these IPO's, they can have a great impact on other ethanol stocks as stocks in this sector usually correlate with eachother. VeraSun, the most highly awaited IPO, was set to debut June 8th, but rumor has it that tommorow is the day. Other news in the industry is that the American Stock Exchange approves the listing of Xethanol.
Symbol | Last Trade | Change | Volume | Market Cap |
---|---|---|---|---|
ADM | 38.21 | 2.08 (5.16%) | 10,608,300 | 25.01B |
ANDE | 75.36 | 6.06 (7.44%) | 1,197,332 | 572.66M |
GPRE | 31.50 | 4.16 (11.67%) | 20,183 | 136.08M |
GSHF.OB | 0.152 | 0.038 (20.00%) | 2,636,002 | 16.28M |
MGPI | 21.75 | 2.42 (10.01%) | 989,708 | 351.24M |
OTD | 1.16 | 0.14 (10.77%) | 505,700 | 84.06M |
PEIX | 20.14 | 2.89 (12.55%) | 6,167,418 | 633.34M |
STKL | 7.47 | 0.40 (5.08%) | 1,286,528 | 425.15M |
VRDM.OB | 0.088 | 0.011 (11.11%) | 3,979,801 | 21.98M |
XTHN.OB | 8.27 | 0.05 (0.60%) | 326,704 | 217.67M |
Get a snapshot of today's market action in Market Overview |
Today's results are a culmination of what has been occurring in the past weeks. Oil prices have declined (due partially to the death of Terrorist Abu Musab al-Zarqawi) , and analysts have been questioning the current status of this industry (A turn around in either of the two can still have a large impact on these stocks). Has the speculation dried up? Has the miniature bubble popped? Companies, such as PEIX, have to start proving its shareholders worthy of buying its shares. PEIX, one of the largest gainers since Bush's State of the Union Address has yet to produce one gallon of ethanol. Currently, its reasonable to say its all hype and potential. Lets take a look at the graph below:
It's been a difficult week as summarized by this graph. On a more optimistic note, some speculation which can correct these stocks of their recent decline is the IPO of the three ethanol companies: VeraSun, Hawkeye Holdings and Aventine Renewable Energy. Depending on the outcome of these IPO's, they can have a great impact on other ethanol stocks as stocks in this sector usually correlate with eachother. VeraSun, the most highly awaited IPO, was set to debut June 8th, but rumor has it that tommorow is the day. Other news in the industry is that the American Stock Exchange approves the listing of Xethanol.
Comments