Replies to post #170 on Green Brick Partners, Inc. (GRBK)

[rejoiceitstime]

spoke with cfo today Kelly , they buy from Cargill and sell to Cargill all in the midwest even though they are officed in colo.

Points : Price of ethanol/corn looks to be stable over the next year at least; they had a rights offering at $.56 cents last march to pay off $46 million in debt (right offering is to the existing share holders) the sugar crops in Brazil are now not competing; many of the suppliers went out of business and are not now up and running. The price of oil , which effects the price of ehtanol does not appear to be weakening

Here ia a very important point; they are spending $16 million on converting the by products to corn oil; this will produce about one gallon for every 4 gallons of ethanol; so say 50 million gallons at $.40 cents is about $20,000,000. The pay back is one year!!! this alone is about $.16 cents a share earnings.

Bottom line: continuing positive crack spread; adding corn oil; likely see earnings of $.40 cents annually . This could go back up to $15.