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:

SymbolLast TradeChangeVolumeMarket Cap
ADM38.21 4:01PM ETDown 2.08 (5.16%)10,608,30025.01B
ANDE75.36 4:00PM ETDown 6.06 (7.44%)1,197,332572.66M
GPRE31.50 3:54PM ETDown 4.16 (11.67%)20,183136.08M
GSHF.OB0.152 3:58PM ETDown 0.038 (20.00%)2,636,00216.28M
MGPI21.75 4:00PM ETDown 2.42 (10.01%)989,708351.24M
OTD1.16 3:59PM ETDown 0.14 (10.77%)505,70084.06M
PEIX20.14 4:00PM ETDown 2.89 (12.55%)6,167,418633.34M
STKL7.47 4:00PM ETDown 0.40 (5.08%)1,286,528425.15M
VRDM.OB0.088 3:58PM ETDown 0.011 (11.11%)3,979,80121.98M
XTHN.OB8.27 3:59PM ETDown 0.05 (0.60%)326,704217.67M
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.


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