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To: J.F. who wrote (166001)	10/4/2007 6:08:46 PM
From: lexi2004	Read Replies (1) \| Respond to of 208838

Thanks so much. PEIX reminds me of GNBT when it used to be lively. GNBT would make a new LOD, then a new HOD. It was all over. PEIX kept tricking me as I've been playing it this last week or so. Finally, I held a core position, then added today when it started to move hoping it wouldn't make a new LOD. :) =================== I'm thinking this might be favorable to PEIX. ====== Sector Wrap: Ethanol Thursday October 4, 4:04 pm ET Ethanol Stocks Mixed As Analyst Downgrades BioFuel Energy, Aventine Renewable Energy Holdings NEW YORK (AP) -- Ethanol stocks were mixed on Thursday, after a JPMorgan analyst said ethanol pricing and margins have been weak, but he expects trends to normalize over time. A supply and demand imbalance has lowered the price of ethanol, and the price of ethanol's main ingredient, corn, has risen. JPMorgan analyst David Silver downgraded shares of BioFuel Energy Corp., a development-stage ethanol producer, to "Neutral" from "Overweight" to reflect these negative trends. Also, Silver said BioFuel Energy is a development-stage company that lacks operating history as a public company and direct production experience. *I'm thinking this lack of experience would be a plus to other more established ethanol producers. PEIX?* Silver said the company's management team has little direct industry experience, as well. "We believe this positions BioFuel as a higher-risk choice among ethanol pure-plays as the industry enters what we believe will be a lengthy consolidation period," Silver wrote in a client note. Silver also downgraded Aventine Renewable Energy Holdings Inc. to "Neutral" from "Overweight" and said an oversupply has emerged about a year to 18 months ahead of his initial forecast because of distribution problems. "We could become more aggressive if we detect clearer signs of an industry bottom or if Aventine can exploit market difficulties to conclude opportunistic acquisitions on favorable terms," Silver wrote. Looking ahead, Silver remained positive on the industry in the long-term, given high crude and gasoline pricing, and expects ethanol prices and margins to normalize as consolidation accelerates. Shares of Aventine Renewable Energy Holdings Inc. hit a 52-week low of $8.60 earlier Thursday. The stock recently rose 74 cents, or 8.1 percent, to $9.86. Verasun Energy Corp. gained 66 cents, or 6.6 percent, to $10.67, and Pacific Ethanol Inc. rose 54 cents, or 6.2 percent, to $9.30. US BioEnergy Corp. lost 17 cents, or 2.4 percent, to $6.93. Andersons Inc. fell 15 cents to $47.20, and Verasun Energy Corp. gained 66 cents, or 6.6 percent, to $10.67.