Barron's Ethanol Stock Picks
5164 views
Rate Now: 1 2 3 4

average rating: 0.00 / 0 ratings
Created by barrons2
DESCRIPTION:

Date updated:06-07-2008

Everyone's dumping on ethanol, but the biofuel has a bright future. Three stocks that could get a healthy burst of energy in the coming year.

symbol name last price % change open
  • +
  • AVR
    N/a
  • $0.93
  • 0.00
  • $0.93

Aventine is valued at about $1.40 per gallon of ethanol capacity, while VeraSun trades at the equivalent of about $1.50 per gallon. It costs about $2 per gallon to build a new ethanol facility, or $200 million for a plant that produces 100 million gallons a year. If valued at replacement cost, Aventine's stock would trade at 12, or more than twice recent levels; VeraSun would trade at 11, nearly twice its recent price. Pacific Ethanol, which recently raised $28 million in a dilutive equity offering, trades slightly below replacement cost -- because it operates in the more protected West Coast market.

People owning AVR also tend to own: ADPADTNANFBRLCHTTELXFCX

TheStreet.com Rating: No Rating What is this?

  • +
  • VSE
    Vse
  • $0.00
  • N/A
  • $N/A

Ethanol producers VeraSun Energy, Aventine Renewable Energy and Pacific Ethanol are trading below book value. All could rally in the coming year.

People owning VSE also tend to own: FRPMRHADMISRGNKTROISOMM

TheStreet.com Rating: No Rating What is this?

  • +
  • PEIX
    Pacific Ethanol
  • $0.371
  • -3.01%
  • $0.3704

Ethanol stocks trade at a discount to their book value. Aventine and VeraSun have book values of $8 a share, while Pacific Ethanol's book is $7. Cascade Investment, which runs money for Microsoft's Bill Gates, was a large early investor in Pacific Ethanol, but it lately has been selling large blocks of the stock, depressing the shares. The stocks aren't cheap based on earnings, however. Aventine fetches 19 times projected 2008 operating earnings, and VeraSun, 21 times estimated profits. Pacific Ethanol is expected to operate at a loss this year.

People owning PEIX also tend to own: AESCKHCTRPDRHEBAYENSLFBG.OB

TheStreet.com Rating: D- What is this?

Portfolio not tracked!

Comments not available

ADD YOUR COMMENTS:

Rocket Stocks for the Week

By Jonas Elmerraji Posted on Nov. 23, 2009 As well as broad-based indexes have performed in the last few months, Stockpickr's weekly Rocket Stocks list has managed to d...

11.23.09 | 10:34 AM
Cramer's Take on Headline Stocks...

Not a Stockpickr member? Join the community today -- for free.Regardless of why a stock is in the news, it never hurts to hear what a professional investor has to say about...

11.20.09 | 11:48 AM
Jim Cramer's Portfolios of the Week

By Roberto Pedone Posted on Nov. 20, 2009 According to Jim Cramer, options expiration is driving the current market selloff. He pointed out that the only stocks that we...

11.20.09 | 08:09 AM
'Fast Money' Portfolios of the Week

By Roberto Pedone Posted on Nov. 19, 2009 According to CNBC’s “Fast Money” traders, the stock market is showing no signs of stopping its current bull run. Joe Ter...

11.19.09 | 11:13 AM
more articles
General market Technical Analysi...
11.14.07 | 22:55 PM From author ZA
The Presidential/Political Thread
01.02.08 | 08:05 AM From author Dave Cox
48 years old, IN debt, college w...
11.21.09 | 07:51 AM From author schmls
more forums
Q. In updating the professional por...
11.23.09 | 16:46 PM Asked by Stockpickr Staff #2

A. golds gonna have a blow off top. when it
goes parabolic you'll know its time to
leave.

today 's lists
52-Week Highs

Here are some of the biggest stocks that made the 52-week high list on Nov. 23, 2009. more

Cramer's Lightning Round

These are the stocks from Jim Cramer's Nov. 20 Lightning Round. We list the stocks on which he is BULLISH and BEARISH.... more

TheStreet.com TV Videos

These are some of the stocks mentioned on TheStreet.com TV recently. Click the URL below each stock to watch the videos. more