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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Skywatcher who wrote (91536)	10/5/2007 2:57:24 PM
From: Skywatcher	Respond to of 206133

Sector Snap: Ethanol Stocks Up Friday October 5, 12:31 pm ET Ethanol Stocks Rise With Broader Market As BB&T Names Top Picks NEW YORK (AP) -- Ethanol stocks rose Friday, echoing an improvement in the broader market, as a BB&T Capital Markets analyst said the sector's downturn will reverse after a few quarters. Heather Jones cited Verasun Energy Corp., Archer-Daniels-Midland Co. and Aventine Renewable Energy Holdings Inc. as top picks over the long term because of their size and position in the industry. In midday trading Verasun rose 56 cents, or 5.2 percent, to $11.23, while ADM added 17 cents at $33. Aventine gained 24 cents, or 2.5 percent, at $10.10. Investors sent the Dow Industrials up more than 94 points to top 14,000 again. The S&P 500 rose more than 12 points following a strong September job growth report. Ethanol producers' shares fell sharply recently as investors lost confidence in the sector. More ethanol is set to come online in the next few quarters as companies add production capacity. However, refiners have not increased their capacity to blend the product with gasoline, causing an ethanol glut and lower prices. Jones expects margins to be lower or flat over the next two to three quarters, but in the long run, she said, refiners will increase ethanol blending due to legislative incentives. "Not to sound overly contrarian, but we believe that when the outlook is very dour and general mood is negative, it is arguably the time to focus on the long-term prospects of an industry, determine who will be left standing, and consider investing in one of those companies," Jones wrote. Other gainers included BioFuel Energy Corp., up 30 cents, or 7 percent, to $4.59; Imperial Sugar Co., which rose $1.07, or 4 percent, to $27.51; and US BioEnergy Corp., which added 10 cents at $7.03.