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Re: westeffer post# 278

Sunday, 04/09/2006 8:18:44 PM

Sunday, April 09, 2006 8:18:44 PM

Post# of 961
west here are some hot excerpts for us.

Ethanol has arrived; Cellulose ethanol stock up 94% and going higher

off to Sin City again for another renewable energy conference. I'll be looking for next-gen technologies in solar, biofuel, geothermal and wind.

In short, renewable energy stocks (ethanol in particular) are headed for a red-hot summer. I think this could be one of the best trading summers since Internet stocks exploded on the scene in the summer of 1998.

Going Green

There are 2 high-profiled ethanol stock IPOs in the pipeline that'll be trading soon:

1) Aventine Renewable Energy Holdings, Inc., a company that produces and markets ethanol announced that it has filed a registration statement with a proposed initial public offering of up to $50 million in common stock.

2) VeraSun Energy Corp., the U.S.'s second largest ethanol producer, plans to go public in an initial offering of stock worth up to $150 million and has applied to list on the New York Stock Exchange under the symbol VSE.

I guarantee these stocks will be blockbusters for investors. And I also guarantee they'll bring a lot of investor attention to the renewable energy markets.

However, Aventine and VeraSun aren't where the leverage is in the renewable energy markets.

The leverage will be in smaller, lesser known stocks that'll skyrocket in price at a moment's notice.

We saw a classic example of this on Friday when an ethanol stock that I've been following for weeks went ballistic when it announced it had received a contract deal with the Feds.

And here's the deal. The upward move in this cellulose ethanol stock is far from over. Hedge funds to Wall Street brokers are talking about this baby as the next best thing since ESPN and Playboy.

A lot of people ask me what's driving the boom in solar and ethanol stocks. I'm not completely naïve to think that a concern for the environment is the driver. It's basic supply and demand and crisis equals opportunity that's driving solar and ethanol stocks.

With that said, here's a headline and the first 2 paragraphs of a recent article that says it all:
World 'cannot meet oil demand'
BY CARL MORTISHED, INTERNATIONAL BUSINESS EDITOR

THE world lacks the means to produce enough oil to meet rising projections of demand for fuel over the next decade, according to Christophe de Margerie, head of exploration for Total and heir presumptive to the leadership of the French energy multinational.

The world is mistakenly focusing on oil reserves when the problem is capacity to produce oil, M de Margerie said in an interview with The Times. Forecasters, such as the International Energy Agency (IEA), have failed to consider the speed at which new resources can be brought into production, he believes.

Regardless if you believe the world is running out of cheap and easy oil, the notion... the perception that we are will drive ethanol stocks to ever-greater highs.










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