Burning man visits ethanol
Ethanol stocks have been getting pounded since their IPOs and the sector has lost its luster. Pacific Ethanol (NASDAQ: PEIX, Stock Forum) was the exception for a while as it has Bill Gates as an investor ahead of the great ethanol boom. But share prices for Aventine Renewable Energy Holdings (NYSE: AVR, Stock Forum) and VeraSun Energy Corp. (NYSE: VSE, Stock Forum) have fallen so far from their IPO prices that if you looked at a chart without a time period attached you might assume you were looking at any dot-com flame-out from 2000 to 2002. The bloom was off the rose from the beginning.
Recent rumors put VeraSun as potentially being toast and yesterday's earnings release from Aventine will do nothing but contribute to that endless slide.
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Copyright 2008  Stockhouse
