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.

The Real Story Wrap: May 28: Stocks in New York used a late surge to move higher at the close following a ragged trading session Wednesday.

Click here to watch the video.

High Corn Prices, Production Squeeze Ethanol
Chuck Marvin and Alix Steele discuss lingering difficulties in the ethanol space.

Click here to watch the video.

Energy - great opportunity

New Lows

Califorina

Ethanol?!? Looks like many people have gotten burned trying to buy this thing in the past. I don’t want to be on that list but I’m going to give it a try here with a stop at 11.22.

Republicans tend to favor ethanol production.

Republicans tend to favor ethanol production.

ethanol

Food is the worst alternative to oil as a liquid fuel.

losers

lost a lot

THERE ISN'T ENOUGH ROOM TO TELL YOU WHY, BUT IN SHORT; ETHANOL IS NEITHER A GOOD STORE OF ENERGY OR A GOOD TRADE OF INPUT VERSES OUTPUT. AG INFLATION, THE DIVERSION OF FOOD CROPS TO ENERGY AT A TIME WHEN THE WORLD DEMANDS MORE AND BETTER FOOD. SCARCE RESOURCES, WHICH MAY NOT BE REPLENISHABLE SUCH AS POTASH BEING USED FOR A FAD FUEL RATHER THAN FOOD. ABOUT 2 YEARS AGO I LISTENED TO A NOBEL LUAREATE IN CHEMISTRY FROM UC BERKELY ON NPR ADDRESSING THIS VERY ISSUE. HE LAID OUT A VERY COMPELLING ARGUEMENT FOR METHANOL PRODUCTION FROM AIR SEPARATION WHICH WOULD COST ABOUT 1.00 / GAL., WOULD PRODUCE CO2 AS EXHAUST AND TAKE CO2 BACK OUT IN THE PRODUCTION PROCESS. IN ADDITION TO BEING MUCH CHEAPER THAN ETHANOL, AND HAVING BETTER ENVIROMENTAL CONSEQUENCES, IT IS A BETTER STORE OF ENERGY BY ABOUT 20%. MAYBE THERE ARE PROBLEMS WITH THIS IDEA, I'M NOT A CHEMIST AND I DON'T KNOW THE DETAILS OF THIS PROCESS TO PULL CO2 FROM ATMOSPHERE AND CONVERT IT TO METHANOL, BUT I HAVE NEVER HEARD ANYONE TALK ABOUT IT SINCE HEARING THIS VERY ACCOMPLISHED MAN SPEAK ABOUT IT AND I WONDER WHY.

Does Gates still own this stock?

sucks

slow downward spiral to.....?

Bought high, now I'm hostage

I guess not everything Bill Gates touches turns to gold.

What's there to like it..