posted
I don't play the big boards much but wondered if any here are watching the ethanol craze.
Aventine Renewable Energy Holdings is doing an IPO which is expected to start at the end of the month. They will be offering 7.75 mil shares for $37-$41 per share trading under the symbol of AVR.
I normally ignore the big board IPO's but considering that Verasun, another big ethanol producer, IPO last week and saw a 30% gain in the first day (and dropped right away on the second) I was wondering if AVR might be a rather lowrisk daytrade.
Anyone who follows the NAS have an opinion on what this stock might do?
Hawkeye Renewable Energy Holdings has also filed for an IPO but I think that one is a ways off yet.
Thanks, The Bigfoot
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posted
I've been following the ethanol craze. The ethanol plays have been coming back down to reality the past month or so.
VSE IPO'ed last week. It priced too high($28.00) above it's range IMO, and suffered from the overpricing, as now it is currently trading below the offer price.
All the big boys are down. ANDE, ADM, PEIX.
Be careful on these ethanol IPO's. They might be a good play for a day or two at the most before they come down. Maybe a %10 max profit available if getting in at the lows of the IPO.
posted
Ethanol costs ~$2.70 per gallon to produce. Roughly the current cost of a gallon of gas. Unless crude goes to $100 a barrell, and gas too, I don't see ethanol stocks going anywhere. It was a fad. A flash in the pan. It's all played out for the time being.
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