First, I don't think they're going to be very specific with you about their plant acquisition dreams. Like I told you before, I think their lawyer has scared them into not telling anybody anything substantial about what's going on.
Second, you can forget about any type of plant acquisition unless those new shares aren't approved. Since shareholder services called me on the phone and begged me to send in that proxy, I can only assume that investors haven't been thrilled about this unusual request from management.
I really don't know what to tell you. Since this company has started last year they have over promised and under delivered. They have already done a major mid-course correction, albeit in a much changed ethanol environment, causing a lot of investors to wonder if they really know what they are doing. Now they're hinting at an acquisition, but won't give us the details. Go figure.
From my standpoint they haven't earned my trust, but I do appreciate that the ethanol environment and credit markets have changed quite a bit over the last year since they got started. I would be willing to exchange newly issued AENS shares for an existing ethanol plant, if they got a good deal on it. (Good deal, that is, from somebody else's viewpoint besides their investment banker.) An ethanol company that doesn't produce ethanol is pretty worthless, and I suspect this management team is a little better on the operations side then they are with getting new plants planned, financed,and built.
My advice is to just go ahead and give them the new shares. Without that, the odds increase that they're going to stay stuck in the mud, spinning their wheels. I don't know if the acquisition of a new ethanol plant would help or hurt the share price. I suppose it depends on what kind of deal they can get on it, and the outlook for the ethanol market at the time of the acquisition.
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