Discussion in 'Chit Chat' started by ssomeguy, Jun 29, 2006.
There was an excellent article in Bloomberg magazine about ethanol companies.
I would hold on a while though.
The US government in their ultimate wisdom and care for the environment have placed large tariffs on countries like Brazil on their ethanol imports. Viva free markets and the capitalist system eh America? NOT! (Just another one of a wide number of hypocrisies that is modern America)
Currently, 75% of Brazilian cars already run on ethanol, and it is the worlds largest producer of ethanol and sugar - the core ingredient.
If oil drops though, the ethanol market will get flattened, so tread carefully!
They are on my short list ... lets hope a hurricane spikes the stocks higher in 3Q so we get a nice entry.
ADM PEIX VSE
i have been following BLDV.
Im really looking for ethanol shell companies or penny stocks, where the demand will cause a spike in the stock.
Want to build a position and get out as soon as the spike happends. No long term investment.
BLDV has had many spikes with the ethanol market, the company doesnt really come out with news, it only follows the ETHANOL trend.
any suggestions on small ethanol company plays?
ALL Ethanol Plays
xnl, gpre, mgpi, peix, vse, adm, ande, stkl, avr, otd, dvsa, bldv.pk,
From BLDV press release, I sh*t you not: "The company recently announced plans to break ground this year on a million dollar goat processing facility in Belize and aggressively market the world's most eaten meat throughout the U.S."
Yes, they want to make ethanol too ...
Well I woke up this morning with a little bio mass chip on my shoulder. For Your Consideration Today>
After the release of a March 21st Forbes article, shares of SunOpta Inc (NasdaqGS: STKL) moved to a high of $12.70, breaking the previous historical high set in May during the biofuels craze of 2006. As the article highlights, biofuel companies received significant hype following the presidentâs 2006 State of the Union address. As with most instances of hype, companiesâ shares swelled only to be deflated once revenues and contracts fail to materialize. To name a few, shares of Xethanol (AMEX: XNL - News) and Earth Biofuels have fallen more than 80% from their respective highs.
There are however real players within the emerging biofuels industry. Notably Archer Daniel Midland (NYSE: ADM - News), the largest ethanol producer in the world and VeraSun (NYSE: VSE - News), the second largest ethanol producer in the US. More interesting though are the companies working to produce biofuels from non-traditional resources such as biomass. With corn prices edging higher due to surging demand from increased ethanol production, much attention has been placed on cellulosic ethanol, or ethanol derived from biomass such as wood chips, switch grass or corn stover.
Unlike current commercial scale facilities which use simple sugars, cellulosic ethanol is produced from cellulose, a complex carbohydrate polymer found in plant walls. Since the bulk of plant matter is in fact cellulose the opportunity to greatly increase ethanol yields presents itself when compared to traditional corn based operations which only utilizes a portion of the plant. Biomass as a feedstock is also widely abundant and will not create a constraint by competing with the food industry.
Of the two current methods used to produce cellulosic ethanol â hydrolysis followed by fermentation of sugars, and synthesis gas fermentation (Fischer-Tropsch process), hydrolysis and fermentation with enzymes will likely emerge more viable if producers can continue to decrease costs. Novozymes and Genencor for example have reduced enzyme costs from $5.00 to about $.20 per gallon of ethanol through on going R&D funded largely by the Department of Energy.
After surveying the major cellulosic ethanol projects initiated over the past two years, there is one consistent player: SunOpta Inc. SunOpta's Bioprocess Group has been involved with every major development, including the US Department of Energyâs pilot facility in Nebraska, Abengoa Bioenergyâs commercial scale facility in Spain and China Resources Alcohol Corporation's pilot plant(currently the only cellulosic ethanol facility in china).
"Our proprietary technology is the only continuous, industrially proven process in the world that can pretreat biomass at the temperatures and pressures required for subsequent enzymatic hydrolysis for the production of fermentable sugars."
As the cellulosic ethanol story develops, SunOpta will continue to draw attention as they sign contracts and finalize Abengoa's commercial scale facility later this year. With shares trading near historic highs and a short position of 7 million shares(>17% of float), a contract with another major player or updates on existing contracts could be enough of a catalysis to propel shares much higher.
Interesting.... no? ~ stoney
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