Oppenheimer has initiated coverage of the down and out US-ethanol sector, and the group was given a lackluster "Perform" rating.
"Perform" ratings have been assigned to Aventine Renewable Energy (NYSE: AVR), Pacific Ethanol (NASDAQ: PEIX), and VeraSun Energy (NYSE: VSE).
With most of these stocks down by two-thirds or more from their 52-week highs, this won’t help a beleaguered sector. If you watch SEC filings, you will have probably seen that Bill Gates’ Cascade fund has been selling more and more of those Pacific Ethanol positions (although he took most funds out long ago).
With the exception of the farmers and businesses that this is helping out, it becomes very difficult to find people who still believe the US-based ethanol program does any good other than helping boost the cost of agriculture.
As we have maintained: "If Iowa wasn’t the first state on the presidential election circus, ethanol would be handled far differently."
Jon C. Ogg
April 25, 2008
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
