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ethanol plant
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white shadow
Posted 5/5/2015 11:46 (#4552945 - in reply to #4552853)
Subject: RE: ethanol plant



East Central South Dakota
Jeremey, I think one of the unknowns is how much ethanol stock do you want in your investment portfolio ? ? Farmers have stood tall in the capital investment of new plants and support the industry, including by getting their check books out and writing checks. However, a lot of producers all ready own a lot of stock in a lot of different entities. Early invested plants have returned very well and will that money find its way back into new plant investment ? Is there investment fatigue in ethanol assets ? The longer we stay at 2 dollar corn the more incentive to build, however, we need gasoline consumption to increase. Cheap feed stock doesn't equate to automatic returns if your end product is in an over-supplied market. Take the RFS to E-15 and investment in new assets is a much more attractive investment.

edit---- an IPO will answer a lot of these questions.........

Edited by white shadow 5/5/2015 11:47
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