Updated: Death-anol?
Ethanol stocks declined severely today
due to Cramer's remarks, even a slight rise in crude oil prices, now at
$61.50 a barrel, couldn't help:
| Symbol | Last Trade | Change | Volume | Market Cap | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ADM | 4:02PM ET | 37.62 |  0.86 | 2.23% | 6,091,600 | 24.67B | |||||||||||||||||||||||
| ANDE | 4:00PM ET | 32.38 | 1.60 | 4.71% | 638,379 | 495.41M | |||||||||||||||||||||||
| AVR | 4:01PM ET | 19.45 | 0.80 | 3.95% | 628,100 | 813.61M | |||||||||||||||||||||||
| GPRE | 3:58PM ET | 18.00 | 1.50 | 7.69% | 38,305 | 79.22M | |||||||||||||||||||||||
| GSCT.OB | 3:59PM ET | 0.0435 | 0.0045 | 9.37% | 1,013,765 | 10.87M | |||||||||||||||||||||||
| GSHF.OB | 3:45PM ET | 0.1150 | 0.0000 | 0.00% | 182,450 | 13.07M | |||||||||||||||||||||||
| MGPI | 4:00PM ET | 22.35 | 1.03 | 4.41% | 411,304 | 363.81M | |||||||||||||||||||||||
| OTD | 3:59PM ET | 0.84 | 0.03 | 3.45% | 570,000 | 61.95M | |||||||||||||||||||||||
| PEIX | 4:00PM ET | 13.76 | 0.95 | 6.46% | 2,257,962 | 512.20M | |||||||||||||||||||||||
| STKL | 4:00PM ET | 9.84 |  0.18 | 1.86% | 867,980 | 563.94M | |||||||||||||||||||||||
| VSE | 4:01PM ET | 15.87 | 0.73 | 4.40% | 468,400 | 1.19B | |||||||||||||||||||||||
| XNL | 3:59PM ET | 2.85 | 0.40 | 12.31% | 459,300 | 77.76M | |||||||||||||||||||||||
| Get a snapshot of today's market action in Market Overview | |||||||||||||||||||||||||||||
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If you haven’t heard already, Cramer yesterday denounced ethanol as “done for good” as a buying opportunity. Cramer has been openly skeptical of ethanol since the IPO of VeraSun Energy (VSE) on June 14th. Let’s see how the ethanol industry has been doing ever since:
| Company Name | June 14-06 | Sep 22-06 | Percent Change |
| ADM | $38.68 | $38.48 | .5% |
| ANDE | $38.46 | $33.98 | 11.6% |
| AVR | $39.27 | $20.25 | 48.4% |
| GPRE | $32.48 | $19.50 | 40% |
| GSCT.ob | $0.09 | $0.0480 | 46.7% |
| GSHF.ob | $0.1150 | $0.17 | 32.4% |
| MGPI | $22.01 | $23.38 | 6.2% |
| OTD | $1.18 | $0.87 | 26.3% |
| PEIX | $21.75 | $14.71 | 32.4% |
| STKL | $7.92 | $9.66 | 22% |
| VSE | $30.00 | $16.60 | 44.7% |
| XNL |
$8.55 |
$3.25 |
62% |
Even if oil goes back up to $70 (currently
at $60) a barrel, Cramer insists that you still shouldn’t buy into ethanol.
There has been speculation that a barrel of oil may hit a surprising $20 or
less:
“An oil economist who accurately predicted two years ago that oil would reach $70 a barrel has reversed course, saying recent steep declines could foreshadow a sell-off to $20 or less.”
This will not be anytime soon as economists believe that a $50 a barrel oil market is a plausible prediction three months from now. This is evidently a prediction which can go the other direction; what happened when we thought it would hit $100?
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