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Thread: revisiting ethanol stocks ...

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    Default revisiting ethanol stocks ...

    As part of a thread concerning ethanol producing companies over the summer, it was agreed by both sides of the DD discussion to 'table' the issue until the end of the next quarter. However, with some of the latest developments, I thought it was prudent to post an update now even though there are still a couple of weeks left until the quarter ends.

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    Default Re: revisiting ethanol stocks ...

    now that the end of quarter is officially here ...



    It would appear that one of the only highly publicized ethanol stocks from the discussion 3 months ago to avoid being savaged too badly (i.e. 'only' a 10% loss or so) is Archer Daniels Midland - however ADM is also highly diversified into corn and seed oils, transportation and storage of agricultural products, wholesale sales of agricultural products etc. with ethanol only comprising a small amount of their total business volume. The 'pure' ethanol plays like PEIX and VSE finished the 3rd quarter having declined somewhere around 40% from their former share prices in early July.

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    Default Re: revisiting ethanol stocks ...

    Fine, I'll respond to the overtly obvious baiting...

    If one looks at the year to date charts thing look a bit different.

    http://stockcharts.com/candleglance/?PEIX,VSE,ANDE,ADM|D

    Most people keep their shares for longer than a quarter and so to base the overall lifetime performance of a stock or even a stock sector on one quarter like Melonie does with this subject ( for 100% personal/political biased reasons) is absurd.

    True, VSE has not done well lately and I am glad I sold when it hit $30 making myself a nice little profit. I have recently bought some more shares though since it has been so low I have a feeling I will be able to repeat my last experience in the next 6 months. Being the 2nd largest national producer of ethanol it has alot of possibility to do well in the energy sector.

    ADM is one that I have had for many years and I plan to continue to hold on to it and buy more over time. Especially when things drop to a lower buy in price as happens from time to time in an stock.

    For those interested in ethanol ADM is not only the safest investment b/c it is quite diversified but it also currently the largest producer in the U.S.

    2 year chart for ADM:

    5 year:

    PIEX has been interesting as well but is a bit more of a risk. However, it has still shown overall growth.

    Their year to date chart:


    and the 2 year chart:



    VSE hasn't even been trade a full year yet so it's a little early to be saying they will or will not make profits. They are a little late to the trading game though, so it could go either way. But as mentioned before they are the current 2nd largest ethanol producer so I am optimistic for longterm ( ie- 5-10 year) profits.

    Oil has dropped quite a bit too lately and I suspect it will continue to be low until after mid term elections and the holiday season passes. Then I think it will rise again and interest in alternative fuels will be also be high again as well.

    Ethanol is NOT a get rich quick product for the most part. Alternative fuels are a LONGTERM investment. And more importantly, imo, an investment in the future rather than staying stuck in the past. All one has to do to see that is take a look at how many car companies are making and developing hybrids and flex fuel cars. It's more and more every year.

    Maybe the super uber neocon's like Melonie choose to not (or can't) see past today but that doesn't mean the rest of us have to be as close minded

    See ya next quarter!

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    Default Re: revisiting ethanol stocks ...

    ^^^ I fail to see where I stated anything but objective financial facts re the last quarter's performance of ethanol stocks, as agreed 3 months ago.

    For any potential investors, I would also point out the usual disclaimer that 'past performance is no guarantee of future results' when reviewing the 2-5 year performance history of any stock regardless of sector.

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