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:
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.
Today's Index:
Symbol | Last Trade | Change | Volume | Market Cap |
---|---|---|---|---|
ADM | 42.19 | ![]() | 6,668,900 | 27.61B |
ANDE | 104.67 | ![]() | 853,258 | 795.39M |
GPRE | 40.99 | ![]() | 20,603 | 177.08M |
GSHF.OB | 0.255 | ![]() | 945,657 | 28.85M |
MGPI | 28.52 | ![]() | 1,183,687 | 457.09M |
OTD | 1.21 | ![]() | 870,800 | 56.19M |
PEIX | 32.86 | ![]() | 5,790,310 | 1.00B |
STKL | 9.66 | ![]() | 1,249,896 | 549.79M |
VRDM.OB | 0.137 | ![]() | 8,794,992 | 33.33M |
XTHN.OB | 10.98 | ![]() | 881,024 | 177.51M |
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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