Zacks Analyst Blog Highlights: Aventine Renewable Energy, Pacific Ethanol, Valero, Green Plains Renewable Energy and VeraSun Energy
For Immediate Release
Chicago, IL May 28, 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: Aventine Renewable Energy (AVRNQ - Analyst Report), Pacific Ethanol (PEIX - Snapshot Report), Valero (VLO - Analyst Report), Green Plains Renewable Energy (GPRE) and VeraSun Energy (VSUNQ - Analyst Report).
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Here are highlights from Wednesdays Analyst Blog:
Ethanol Industry Consolidation
Following a period of optimism in the burgeoning ethanol industry and renewed interest in clean, green renewable energy and energy independence in the U.S., the rapid introduction of new ethanol plants is expected to continue its current phase of bankruptcies and consolidation.
So far in 2009, ten ethanol production plants filed bankruptcy, including those operated by Aventine Renewable Energy (AVRNQ - Analyst Report) and Pacific Ethanol (PEIX - Snapshot Report).
The failures of the ethanol business model were primarily caused by the combination of high corn prices and declining prices of oil and gasoline.
In early 2009 Valero (VLO - Analyst Report) , the crude oil refining and marketing company, purchased seven VeraSun plants in an all-cash $477 million deal.
Now, in the most recent industry development, Green Plains Renewable Energy (GPRE) purchased two ethanol plants previously owned by bankrupt VeraSun Energy (VSUNQ - Analyst Report). The sites were purchased from a lending group led by AgStar Financial Services, which took ownership of the plants during the VeraSun bankruptcy. AgStar is partially financing the transaction with an interest bearing $16 million working capital loan.
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