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

To: richardred who wrote (2504)	6/13/2007 12:53:23 PM
From: richardred	Respond to of 2801

>oversupply of organic milk. Wouldn't this apply towards corn? Ahead of the Bell: Dean Foods Dips Wednesday June 13, 9:12 am ET Dean Foods Declines on Disappointing Outlook, Analyst Downgrade NEW YORK (AP) -- Shares of Dean Foods Co. ticked lower in Wednesday premarket trading, after a JPMorgan analyst cut his rating on the stock following the dairy company's lower full-year adjusted earnings outlook. Dean Foods on Tuesday projected its full-year profit, excluding items, below Wall Street expectations due to high raw milk prices and an oversupply of organic milk. Dean now sees full-year adjusted net income between $1.52 to $1.58 per share -- below the $1.62 estimate currently expected by analysts polled by Thomson Financial. JPMorgan analyst Pablo E. Zuanic downgraded the stock Wednesday to "Neutral" from "Overweight," concerned that this may not be the last time Dean Foods lowers its earnings per share outlook. "Our estimates show that the more cautious tone may not be entirely reflected in the reduced guidance, and that there could be further downside to earnings," Zuanic wrote in a client note. Since the company reported first-quarter results on May 3, the stock has declined nearly 16 percent to Tuesday's closing price of $31.07. "It is difficult to get behind the stock with management sounding so cautious," Zuanic wrote. Shares of Dean fell a penny to $31.06 in premarket trading. biz.yahoo.com

To: richardred who wrote (2504)	6/13/2007 12:58:10 PM
From: richardred	Read Replies (1) \| Respond to of 2801

>A consolidation. Really? Message 22984541

To: richardred who wrote (2504)	6/14/2007 7:53:29 PM
From: Glenn Petersen	Respond to of 2801

Good article. Biofuel Energy completed its IPO today and met with a tepid response: Biofuel Bomb Ethanol IPO is latest in line of investment stink bombs. June 14, 2007 By Scott Martin Maybe oil is better than ethanol, after all—on Wall Street at least. That’s what investors seemed to be saying after Biofuel Energy made a lackluster debut on the Nasdaq stock market on Thursday. It was the fourth recent ethanol IPO to fall short of all the hype and promise that has been heaped upon the alternative fuel. Biofuel Energy shares fell below their offering price of $10.50—skidding as low as $10.05—before recovering slightly to reach $10.62 in midday trading. The company’s debut was the latest sign of trouble for the ethanol producer. It had originally planned to offer 9.5 million shares at $16 to $18 each to raise up to $161.5 million. Weak demand forced Biofuel Energy to cut its price to $14 on Tuesday. And on Wednesday, the company again cut its price to $10.50 and reduced the number of shares to 6 million in hopes of raising $63 million. Hype over ethanol has escalated along with the rising price of light, sweet crude oil, which traded at $67.50 on Thursday. But the rising cost of corn has raised new doubts about ethanol’s ability to compete with gasoline on cost. Ethanol IPOs have so far stung investors. In the past 12 months, VeraSun Energy, Aventine Renewable Energy, and US BioEnergy have gone public and are all now trading below their offering prices. Brookings, South Dakota-based VeraSun priced 18.3 million shares at $23 each on June 13, 2006. Shares on Thursday traded at $14.54, more than 50 percent below a high of $30.75. Aventine Renewable Energy of Perkins, Illinois, priced 8.1 million shares at $43 each June 28, 2006. Aventine shares on Thursday were at $15.62, down from a high of $42.50. US BioEnergy of Inver Grove Heights, Minnesota, on Dec. 14, 2006, priced 9.4 million shares at $14 each apiece. On Thursday, shares traded at $11.21. Vinod Khosla, who formed Khosla Ventures in 2004, is a major proponent of ethanol investments. Mr. Khosla was a big backer of California’s Clean Energy Initiative, Proposition 87, which got shot down last year by voters. Denver, Colorado-based Biofuel Energy is building two ethanol plants in the Midwest. Biofuel Energy, formed in 2006, has so far shown no revenue. Cargill is a major Biofuel Energy shareholder. redherring.com