Ethanol a good buy? PEIX

Discussion in 'Stocks' started by WallstYouth, May 7, 2006.

  1. Very late......

    Look at BG for a new ethanol play as of Wed. of this week.....

    STKL still could make large moves, and ADM is the largest supplier of ethanol and is a very safe company....but I feel it's overvalued over 38.00

    The ones i feel that are over valued....PEIX, MGPI, GPRE, XTHN.ob,
  2. figures lol thanks for the heads up :)
  3. Warren Buffet recently told his groupies in Omaha that ethanol plays offer little value to the investor over time. Ethanol production has historically been a very low margin commoditized business. That being said, some of these stocks might have some more upside for traders (STKL especially, MGPI and ADM). The escalating Iran dilemna and rising gas prices during the peak driving season and constant media coverage should continue to stoke interest in alternative fuel source stocks.
  4. 60 mins came out last night and was pumping ethanol as a strong buy$$$
  5. Noc


    Here is last nights 60 minutes piece.

    Nothing that most who are following ethanol don't already know. Brazil has turned to ethanol (from sugar cane) some 15 years ago and using flex fuel auto's. The US is learnig from them and is usng corn. Also the US is studying the cellulose method to produce ethanol. The piece didn't label it as a strong buy thats a conclusion you'll have to make on your own.
  6. trendo


    Dateline NBC also did a positive piece on ethanol. (It ran in the same timeslot as 60 Min.)
  7. But there is a lot you do not know.

    US is not learning from Brazil at all, in fact, US has zero intention learning anything from Brazil when that info is already known. Only reason Brazil went for ethanol is because it can be made from sugar and for Brazil, sugar is like beach sand. Ethanol is not a logical solution, stop using propaganda for your research and check out a variety of studies that show the efficiency of corn & wheat ethanol comparable to the current administration's fiscal discipline.

    Sugar is more efficient than corn for ethanol, so one would think that US would at least try sugar also, let alone focus on other actually efficient & logical sources. Unfortunately the game is USA is whose lobbyist is more powerful. The winner?

    ADM, ladies & gentleman, please give it up for the biggest scumbag of the bunch. ADM is the big time winner of enourmous corn ethanol subsidies courtesy of the American taxpayers.

    I've said it before, the ethanol hype in US is a big scam. That's why I would be careful with it. Although if I had the choice, I would go with the big money that makes the rules aka big time corporates like ADM. What's funny is that ADM has little plans to expand their ethanol operations while they are more than happy to accept all the subsidies. Talk about things that make you go "HMMMM".

    P.S. Some research on Brazil and ethanol would also yield contoversial conclusions. Although I do commend their effort and respect it. They did start decades ago when most other sources were not logical yet.
  8. Closed at 32.86 yesterday.

    Might take another dip today.

    Good time to buy?
    #10     May 18, 2006