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Why I Don't Post Stock Tips Here
February 01, 2006
The short answer: this is not that kind of blog. The long winded answer...
After watching the best film of 2005 around christmas, it was time to do some research on what I think the film is about. Following google links on alternative fuel, I stumbled on a company that seemed "well positioned" called Pacific Ethanol. Being the end of the year maybe it was time to balance the pension portfolio and buy in. But I decided it was too quick. I didn't know enough about the industry, which meant I had no idea about the stock's valuation, competition, and other market forces that may affect it. Sound judgement, right? Better to setup some high-low alerts, watch and wait. Here's what's happened since:
February 1, 2006 at 09:27 PM in Opinions | Permalink
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Comments
Ethanol is a crappy fuel/additive that is eventually going to fall out of favor once the public is more educated on the subject.
- Dan
Posted by: Daniel Berger | Feb 2, 2006 9:15:02 AM
Re: Pacific Ethanol.
It’s not just that ethanol is a ‘crappy’ fuel/additive - Pacific Ethanol has a crappy business model. The ‘elevator pitch’ is as follows: much of the ethanol used in fuels in the US is consumed by California. California has no ethanol plants. So let’s build 5 or 6 ethanol plants in California. Problem is, corn, (from which ethanol is derived) grows in Minnestoa, Iowa, Nebraska and Ohio. It doesn’t really grow in California. In fact, California’s TOTAL crop of 25 million bushels a year will only serve ONE of Pacific Ethanol’s projected 6 plants (the first plant, under construction, uses around 14 million bushels a year). So we are replacing a system in which corn, grown in the cornbelt, is refined into ethanol in the cornbelt and shipped to California with one in which corn (the raw material from which the ethanol is derived, so more of it, more bulk, more weight etc.) is shipped to California to be refined. And Bill Gates invested in this company! And at the time of writing its market cap is around $900 million! It all just goes to show that commonsense NEVER gets in the way of a good story.
Posted by: tommy666 | Apr 14, 2006 8:01:01 AM
You guys have no clue what you are talking about, ethanol is a great fuel/fuel additive. The exhuast fumes of ethanol include co2, oxygen and water, therefore there are no pollutants in the exhaust. Ethanol can be made from anything like marijuana to corn, if marijuana were legal it would be the highest producing plant for ethanol. If you knew anything ethanol has been used before gasoline and has been since with race cars, some motorcycles ect;.... but dont downtalk ethanol or anything at that matter before you research......................
Posted by: DoYourResearch | Feb 6, 2007 4:38:42 PM
