Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : $2 or higher gas - Can ethanol make a comeback? -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2446)	4/12/2007 12:06:39 AM
From: richardred	Respond to of 2801

Sector Snap: Ethanol Producers Slip Wednesday April 11, 6:13 pm ET Makers of Ethanol See Shares Slip Amid Earnings Estimate Cuts NEW YORK (AP) -- Ethanol producers lost ground Wednesday after analysts cut earnings estimates and ratings amid forecasts for rising corn costs. On Tuesday the price of corn -- the primary raw material for ethanol used by U.S. producers -- continued its recent slide. A bushel of corn dipped more than 6 cents to just shy of $3.88 on the Chicago Board of Trade. Meanwhile, ethanol prices rose 7 cents to settle at about $2.23 a gallon on CBOT. While lower corn costs and higher ethanol prices should bode well for ethanol producers, many analysts expect the price of corn to start rising again -- which will hurt ethanol industry margins. Corn prices have taken a dive since a government report revealed farmers' intentions to plant 15 percent more corn than they did last year. But some analysts expect demand for corn for both feed and fuel will still outpace supply, despite the estimated increased supply. Soleil analyst Ian Horowitz reduced his 2008 earnings estimates for Aventine Renewable Energy Holdings Inc. and Verasun Energy Corp. Wednesday. He also raised his rating on Aventine shares to "Buy" from "Hold," and cut his rating on Verasun to "Sell," from "Hold." However, Horowitz called his earnings estimates "conservative" and said "there could be potential for upside improvement." Elsewhere, UBS cut its rating on Verasun to "Reduce" from "Neutral." Earlier this month, Friedman Billings Ramsey analyst Eitan Bernstein cut his earnings estimates and stock price targets on Aventine, Verasun and Pacific Ethanol Inc. Shares of Verasun fell 80 cents, or 3.7 percent, to close at $20.57 on the New York Stock Exchange. Pacific Ethanol shares fell 19 cents to close at $15.98 on the Nasdaq Stock Market. Shares of Andersons Inc. dropped $1.16, or 2.7 percent, to close at $42.10 on the Nasdaq. Aventine shares rose 5 cents to end at $20.11 on the Big Board. Shares of U.S. Bioenergy Corp. gave up 32 cents, or 2.4 percent, to $12.96 on the Nasdaq. biz.yahoo.com