Sunday, July 29, 2007

How Bearish Are Ethanol Stocks? ; I'll answer my own question "not bad"

Pacific Ethanol - I don't know much about these guys. But this chart looks real bad. Kinda like a roller coaster going down, and for a while. That blue line on the price chart is the 200 day average and when you trade way below that it ain't good
NYSE- the stock exhange as a whole. This chart reflects the recent drop and the gut wrenching recent drop. But note that things are still above the 200 day average
ADM - I talk about this company a lot. I think it is a good bellweather of how North Ameican ag industry is going to "do" in the new biofuel world. OK so kind of up and down but seem to be trading in a range. You don't want to see things not recover from this "market correction" Going more below 200 day average could really start a free fall


Andresons Inc - diversified ag stock with interests in biofuel. If it can recover again from this latest dip Andersons should continue on the move up it's 200 day ave indicates. Andersons in no as "pure" an ethanol stock as Pacific Ethanol or identified with ethanol as ADM, but it is an ag stock with conections to ethanol.

Pacific again Sorry I don't know how to get rid of this chart. And my second look at this chart says "ugly, ugly, ugly" Young "pure play" ethanol
processor. I'm going to look at there financials and the news. I they are not making any money, look at there business are they ever going to make money? Are they a promotion stock playing on a "new" trend or do they have legs? Do they have smart experienced management and a good business plan? Do they have access to money and credit? Do they have some bricks and morter? Do they have production?