Sector Wrap: Alternative Energy Sparks
Wednesday November 8, 4:18 pm ET
Alternative Energy Shares Heat Up on Democratic Gains in Congress
NEW YORK (AP) -- Alternative energy companies got a boost Wednesday on news that the Democrats had retaken control of the House and were poised to take over the Senate as well.
Julie Hudson of UBS Investment Research said the shift in the balance of power could translate to changes in emphasis in the tone of environmental policy, and possibly climate change, discussions.
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UBS also said in a report released prior to the elections that Democrats would be more likely to hold congressional hearings on global warming, support higher gas taxes and encourage the shift toward forms of alternative energy such as wind and biofuels.
Shares of Archer Daniels Midland Co., an oilseed processor and ethanol producer, posted some of the days largest gains, gaining $2.20, or 6.6 percent, at $35.73 on the New York Stock Exchange.
The Decatur, Ill.-based company on Wednesday told analysts about plans to boost its growth in both its bio-energy and agricultural processing businesses.
Elsewhere in the sector, shares of Andersons Inc. rose $2.05, or 5.8 percent, to $37.15 on the Nasdaq.
The processor of corn, soybean and wheat recently entered the ethanol market and began production at a new Michigan ethanol plant during the third quarter. A second plant is being built in Indiana.
Shares of Pacific Ethanol Inc. climbed $1.29, or 8 percent, to $17.51 on the Nasdaq, while shares of Aventine Renewable Energy Holdings Inc. rose $1.18, or 5.7 percent, to $21.94, and Verasun Energy Corp. picked up $1.69, or 9 percent, at $20.40, both on the NYSE.
Other alternate energy companies rose as well.
Ballard Power Systems Inc. gained 58 cents, or 8.7 percent, at $7.25; Plug Power Inc. added 21 cents, or 5.3 percent, at $4.14; FuelCell Energy Inc. finished the day up 23 cents, or 3.4 percent, at $6.95; and Rentech Inc. rose 32 cents, or 9 percent, to $3.88 -- all on the Nasdaq.
