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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 (2550)	8/3/2007 1:36:25 PM
From: richardred	Read Replies (4) \| Respond to of 2801

Have to go against the grain at Zacks. >Namely, there are very few barriers to entry and producers are subject to corn, natural gas, and oil price fluctuations. There sure seem to be one big barrier to me. Lack of risk capital to fund a new small producers entry and balance sheet condition of existing small producers. IMO it will be consolidation of the weak instead of building new capacity. >The uncertain long-term demand picture also makes us cautious. MTBE replacement is a fairly sure demand. >The government may not substantially increase renewable fuel production mandates after 2012. IMO- It shouldn't need to. In the mean time the Gov't is being very generous and corn state politicians won't have the backbone to cut what's in place. Nibbled at up some AVR today at 14.48.