After the market closed yesterday, Xethanol Corporation (AMEX:XNL) announced that a Federal Court had approved the settlement Xethanol had reached in a class action suit alleging that the company had misled investors. The settlement was reached in November 2007, and will cost the company $400,000. Xethanol’s insurer will pay $2.4 million plus up to $300,000 in legal costs.
But Xethanol has bigger problems. It’s stock is trading virtually atits 52-week low even with today’s gains, off about 85% from its high.Operating cash flow is negative and its gotten no traction amonginstitutional investors.
Still, Xethanol’s share performance is better than either PacificEthanol (NASDAQ:PEIX) or VeraSun (NYSE:VSE), which are both off about90% from 52-week highs. Ethanol companies can’t seem to thrive, evenwith a $0.51/gallon federal subsidy. It’s hard to see how the ethanolbusiness gets better going forward.
Xethanol shares are up almost 18% today. Still, at $0.20, it is hard to get excited here.
Paul Ausick
October 9, 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
