In coverage this morning, Goldman Sachs has come out and reiterated the firm’s Cautious analyst coverage view for the corn-based ethanol producers. Specifically, the firm has reiterated its "SELL" ratings on:
- Aventine Renewable Energy (NYSE: AVR),
- Pacific Ethanol NASDAQ: PEIX),
- and VeraSun Energy (NYSE: VSE).
The firm notes that corn markets are already short of supply already tight and that spot prices are now much higher because of the Midwest flooding. It also noted that the next big ramp-up in ethanol capacity will keep pressure on ethanol equities.
As part of this call, Goldman Sachs made wider loss projections for PEIX in 2008 and 2009 and now sees losses rather than gains in VSE as well. The interesting part of the call besides the reiterated Sell rating is that Goldman Sachs actually now sees a gain in AVR and less of an earnings drop-off in 2009 as a result of likely decelerated plant expansion plans.
Jon C. Ogg
June 27, 2008
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
