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Non-Tech : $2 or higher gas - Can ethanol make a comeback?
DAR 32.58-0.7%Nov 4 3:59 PM EST

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To: Rolla Coasta who wrote (1658)9/13/2006 10:00:40 AM
From: richardred   of 2801
 
Though this decline might not last. I don't see a crash either. Just a temporary setback. You must have noticed many in ethanol group have crashed from their highs. The bellwether ADM is diversified and hasn't had the setback as have many of the pure plays. I think this setback presents an opportunity for myself to buy some stronger profitable pure play ethanol stocks for the first time. Beforehand,I've consistently thought the way to play the ethanol group was indirect exposure through infrastructure building. I see leaders of this group strengthening once oil prices head north of 70. This country is getting some needed relief. Sectors of the economy that didn't benefit well from rising oil prices, could benefit now. It could spur some trickle down benefits to Ford & GM directly. Stagnant or steady growth could lead to some capital spending among industries who benefited most.

I think are power grid infrastructure as a whole is insufficient to meet future needs. China's must be not only lacking,but real antiquated. This in light of a economy that is growing very fast and basic industries that need lots of energy.
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