I got into a discussion with a family freind who is the manager of Exol, a company that produces ethanol, which is a gasoline substitute made from corn. This is what I learned:
When Exol was looking for investors back in 1996-7, they sold the stock for $0.50 a share to anybody who farmed. It opened in 1998 as a 25 million gallon a year production facility. Farmers hauled corn to Exol and then they refined it into ethanol, DDG's, and co2. The ethanol they sold all over the US, the DDG's (a feed for cattle) they sold all over the US, and the co2 they sold to the Miller Brewing Company to carbonate beer. As of now, the stock is worth $4.00. If you invested $10,000 back in 1997, you would have nearly $80,000 today.
There are many myths about ethanol, which is the main reason it is so unpopular. The first is that modern cars that aren't made specifically for ethanol use will break down if run on ethanol. Completely false. Most modern cars can run safely even on 85% ethanol, 15% gasoline. Exol has a suburban and a van that run on 100% ethanol without having any revisions done to the engines. This little fact will save you a lot of money if your local coop gas station has an "E-85 for $0.85" deal like ours has every once in a while. Ethanol actually helps clean your engine, and it also is an anti-freeze that prevents your gas lines from freezing in the winter.
The next myth is that it hurts the oil industry. Somewhat false. Oil companies get paid by the gov't to put ethanol in their gas. This helps the ethanol industry because the oil industry isn't so pissed about having mandatory 10% ethanol in gasoline laws.
Another myth is that ethanol is more expensive than gasoline. The price of ethanol is about the same as gas, sometimes highers, but it could be lower too. The good thing about ethanol is that it is incredibly consistant unlike oil. Oil prices go higher with civil unrest in Nigeria and Iraq, but the price of corn and ethanol is relatively consistant because the corn comes straight from America's heartland and unless the corn industry suffers catastrophic losses one year, ethanol prices will remain about the same.
So what is the point of this thread exactly? To disple common myths about ethanol, and to also inform AO of how much potential ethanol has for returning high profits to stockholders. Invest in ethanol companies while their stock prices are still low, because unless something catastrophic happens to the ethanol industry, stock prices will just keep skyrocketing.
When Exol was looking for investors back in 1996-7, they sold the stock for $0.50 a share to anybody who farmed. It opened in 1998 as a 25 million gallon a year production facility. Farmers hauled corn to Exol and then they refined it into ethanol, DDG's, and co2. The ethanol they sold all over the US, the DDG's (a feed for cattle) they sold all over the US, and the co2 they sold to the Miller Brewing Company to carbonate beer. As of now, the stock is worth $4.00. If you invested $10,000 back in 1997, you would have nearly $80,000 today.
There are many myths about ethanol, which is the main reason it is so unpopular. The first is that modern cars that aren't made specifically for ethanol use will break down if run on ethanol. Completely false. Most modern cars can run safely even on 85% ethanol, 15% gasoline. Exol has a suburban and a van that run on 100% ethanol without having any revisions done to the engines. This little fact will save you a lot of money if your local coop gas station has an "E-85 for $0.85" deal like ours has every once in a while. Ethanol actually helps clean your engine, and it also is an anti-freeze that prevents your gas lines from freezing in the winter.
The next myth is that it hurts the oil industry. Somewhat false. Oil companies get paid by the gov't to put ethanol in their gas. This helps the ethanol industry because the oil industry isn't so pissed about having mandatory 10% ethanol in gasoline laws.
Another myth is that ethanol is more expensive than gasoline. The price of ethanol is about the same as gas, sometimes highers, but it could be lower too. The good thing about ethanol is that it is incredibly consistant unlike oil. Oil prices go higher with civil unrest in Nigeria and Iraq, but the price of corn and ethanol is relatively consistant because the corn comes straight from America's heartland and unless the corn industry suffers catastrophic losses one year, ethanol prices will remain about the same.
So what is the point of this thread exactly? To disple common myths about ethanol, and to also inform AO of how much potential ethanol has for returning high profits to stockholders. Invest in ethanol companies while their stock prices are still low, because unless something catastrophic happens to the ethanol industry, stock prices will just keep skyrocketing.
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