Demon Ethanol Is In a Coma
When oil was at $147 a barrel, ethanol was a savior for car and truck drivers everywhere. The ethanol industry built tremendous production and transportation infrastructure. It was a "if we build it, the will come" strategy. Then, the world fell apart. Prices for gas at the pump are back down well below $3 instead of being headed toward $5 as they were in August.
Verasun says it will keep operating, but common shareholders have been crushed to death. The stock was at nearly $18 late last year. Now it is under $0.50 (see chart above, click to enlarge).
Until oil moves back above $100, ethanol companies are in a coma.