Good news for ethanol stocks.
And another good news is that senate has passed a new energy bill that mandates increase in ethanol use almost seven fold to 36 bil gallons in 2022.
Our beloved president can't wait to sign it into law.
I'm loaded on ethanol stocks over the past few days. Go Ethanol !
Yeah, yeah, I know ethanol isn't very efficient and prices on everything else will probably rise, but... I intend to profit from ethanol stocks as much as I can.
The big picture is.. ethanol is real, its here, and it gives politicians a lot of benefits. Lots of brownie points from corn growing states. And they can always say that they are doing something to make the country independant from foreign gasoline.
Sentiment in ethanol sector is horrible. Everyone hates the stocks. Get ready for a rally.
http://www.marketwat...mp;siteid=yhoof
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Energy bill's winners and losers
Ethanol wins, Detroil loses, Big Oil dodges the bullet
By William L. Watts, MarketWatch
Last Update: 2:07 PM ET Jun 22, 2007
WASHINGTON (MarketWatch) -- Like most pieces of sweeping legislation, the energy bill passed late Thursday by the Senate offers a variety of winners, losers and those that fall somewhere in between.
If any industry clearly comes out ahead, it's the ethanol business, analysts say. The Senate bill massively boosts the mandate for ethanol use from 7.5 billion gallons in 2012 to 36 billion gallons by 2022.
The Senate easily brushed aside concerns raised in some quarters that ethanol-related demand for corn could translate into higher food prices for consumers and higher feed prices for livestock producers. Proposals to rescind a tariff on ethanol imports and to reduce the ethanol production mandate if the Agriculture Department determined there was a corn shortage were both turned back during debate.
The ethanol mandate is "the part of the bill that has the broadest consensus to it. It's a good initiative for the ethanol industry. It's a nice growth driver ... and I think one way or the other the Congress will help facilitate the growth of that industry before the next election," said Mark McMinimy, an agribusiness analyst at Stanford Group Co.
A boost in government-mandated demand offers another dose of long-range good news for ethanol producers such as industry giant Archer Daniels Midland Co.
"Certainly the consumption mandate ... is a real nice growth driver for the industry and for a lot of companies that are leveraged to ethanol either as input suppliers or service providers," including seed, fertilizer and farm-equipment makers, McMinimy said.
Ethanol producers have seen their stock prices flag in recent months amid concerns about a near-term supply glut and the impact of rising commodity prices.
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Edited by ogm, 01 July 2007 - 05:58 PM.