Zacks Analyst Blog Highlights: Citigroup, JPMorgan, Pacific Ethanol, VeraSun Energy and Aventine Renewable Energy.

For Immediate Release

Chicago, IL – May 20, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Citigroup (C - Analyst Report), JPMorgan (JPM - Analyst Report), Pacific Ethanol (PEIX - Snapshot Report), VeraSun Energy (VSUNQ - Analyst Report) and Aventine Renewable Energy (AVRNQ - Analyst Report).

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Here are highlights from Tuesday’s Analyst Blog:

FASB Changes Accounting Rule

The rules will certainly improve the transparency of the banks’ balance sheets. In the stress tests recently conducted, the Federal Reserve had estimates of assets likely to be brought onto the balance sheet as a result of these amendments. It is estimated that 19 banks subjected to stress tests would have to bring about $900 billion of assets onto their balance sheets.

In their latest regulatory filings, Citigroup (C - Analyst Report) estimated that the rule change would result in consolidation of $165.8 billion in additional assets, and JPMorgan (JPM - Analyst Report) estimated it to be $145 billion.

We think that the new rule is a very positive move by FASB, after the much criticized and much debated revision allowed by it (under intense pressure from Congress) on mark-to-market accounting recently.

Pacific Ethanol Subsidiaries Bankrupt

Pacific Ethanol (PEIX - Snapshot Report) disclosed that lenders agreed to $20 million in debtor-in-possession financing.

Kinergy is the ethanol sales and distribution arm of Pacific Ethanol. It sells ethanol made by Pacific Ethanol as well as ethanol made by Midwestern producers. Pacific AG sells wet distillers feed grain to California's big dairy industry. The grain is a byproduct of producing ethanol, made after the fermentation process.

Pacific Ethanol is at a disadvantage to many of its rivals. It had to buy most of its corn from the Midwest, which raised its operating costs. The company also buys some corn in California. Pacific Ethanol said it plans to sell its ethanol and feed production under existing agreements.

As recently as 2007, the ethanol industry had a bullish outlook. However, with high corn prices it's become a very difficult market for ethanol producers. There are currently 10 other ethanol producers in bankruptcy, including VeraSun Energy (VSUNQ - Analyst Report) and Aventine Renewable Energy (AVRNQ - Analyst Report).

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