The Ethanol Slide

  With oil prices recently decreasing, falling below $69 a barrel it is obvious that it correlates to ethanol’s recent drop. With no news and analyst overvaluing these companies, it will be difficult for a reversal to occur, until optimistic news will be published. Evaluating the future of these companies is difficult as Micheal Judd, an analyst at Greenwich Consultants that covers Pacific Ethanol says "There is no valuation that makes any sense at all, this is just a bubble situation."Other things to worry about ethanol is its cost. The price for ethanol is currently around $2.80 a gallon, which is similar to the price of gasoline. In order for ethanol to continue its competitiveness gasoline would have to remain at its record highs, or the price of ethanol would have to drop. Another problem is its very feasible to enter the ethanol game, as its technically simple to produce. This is another risk that shareholders have to keep in mind as these large companies such as Exxon or BP can easily take these small market. cap companies out the game.

 Today's Index:
SymbolLast TradeChangeVolumeMarket Cap
ADM42.19 4:01PM ETDown 1.84 (4.18%)6,668,90027.61B
ANDE104.67 4:00PM ETDown 7.81 (6.94%)853,258795.39M
GPRE40.99 3:45PM ETDown 2.56 (5.88%)20,603177.08M
GSHF.OB0.255 3:59PM ETDown 0.01 (3.77%)945,65728.85M
MGPI28.52 4:00PM ETDown 1.63 (5.41%)1,183,687457.09M
OTD1.21 4:00PM ETDown 0.06 (4.72%)870,80056.19M
PEIX32.86 4:00PM ETDown 3.79 (10.34%)5,790,3101.00B
STKL9.66 4:00PM ETDown 0.45 (4.45%)1,249,896549.79M
VRDM.OB0.137 3:59PM ETDown 0.009 (6.16%)8,794,99233.33M
XTHN.OB10.98 4:00PM ETDown 0.25 (2.23%)881,024177.51M
Get a snapshot of today's market action in Market Overview

What to look forward too:
 Veridium has made an announcement that it has plans to release its financial results for the first quarter of 2006 later this month.

GreenShift makes announcement that it has plans to release its financial results for the first quarter of 2006 later this month.

 

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