With the expected mention of ethanol ahead of President Bush's speech, traders may want to take notes of several companies on the move. It is said that the President will announce plans for alternative energy sources, including doubling ethanol production by 2012 to relieve dependence on oil and giving consumers tax credits for purchasing hybrid cars. Companies to look for include: O2 Diesel Corporation (OTD), Intrepid Technology & Resources (IESV), Xethanol Corporation (XTHN), Pacific Ethanol (PEIX), and Archer-Daniels-Midland Company (ADM). From Knobias
IESV has the smallest market Cap of the 5 here.
IESV 10 million OTD 33 million XTHN 86 million PEIX 540 million ADM 20 billion
Posts: 655 | From: Louisville,Ky | Registered: Dec 2005
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AP Pacific Ethanol Stock Up Ahead of Speech Tuesday January 31, 1:42 pm ET Pacific Ethanol Shares Rise to New 52-Week High Ahead of State of the Union Address
NEW YORK (AP) -- Shares of Pacific Ethanol Inc. surged to a new 52-week high on Tuesday, ahead of President Bush's State of the Union address, which is expected to include a statement of support for greater use of ethanol. ADVERTISEMENT
In midday trading on the Nasdaq, shares of the Fresno, Calif. company jumped $3.14, or 24 percent, to $17.78, after earlier hitting a new 52-week high of $18.14. Shares were trading at more than eight times their average volume.
Over the past year, shares previously traded between $7.06 per share and $14.90 per share.
In his speech to Congress, Bush is expected to talk about alternative energy sources and tout his administration's work in that field for the past five years. He's also expected push for new technologies and more fuel from cleaner sources such as ethanol and hydrogen.
Ethanol is a fuel additive made from fermented corn that allows cars to run more cleanly.
In a note to clients, analyst Paul J. Resnik of JM Dutton Associates cited the expected mention of ethanol in Bush's speech, along with increasing interest from American automakers and the news media as a catalyst for the stock, which added $2.41, or 20 percent, in Monday's session.
Resnik also pointed to the lower-than-projected cost of corn, the primary input cost for ethanol, and continued progress of the construction of Pacific Ethanol's plant in Madera, Calif., which is expected to be operational in the fourth quarter.
Separately, the company said it received commitment letters for up to $34 million in debt financing for the construction of the plant.
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