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Non-Tech : $2 or higher gas - Can ethanol make a comeback? -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (933)4/2/2006 10:48:19 AM
From: richardred  Read Replies (1) | Respond to of 2800
Glen: Thanks for all the great information. I suspect Verasun will come to be a timely market favorite. PEIX, already is, and will not be profitable for some time. It should be good market weather to bring more private ethanol companies public.

To: Glenn Petersen who wrote (933)4/4/2006 1:16:07 AM
From: richardred  Respond to of 2800
Private investment in ethanol plants sends profits elsewhere

SIOUX FALLS, S.D. Analysts say an ethanol company's plan to go public means investors will come from Wall Street, as well as main street.
VeraSun Energy -- based in Brookings, South Dakota -- is looking to raise up to 150 (m) million dollars in an initial public offering aimed at increasing its presence in Iowa and Minnesota.

Until now, most of South Dakota's ethanol industry has followed the cooperative model, with farmers owning a share of the plant.

But market researcher Jeff Kapell of Massachusetts says Wall Street wants into the game.

He says going public lets ethanol companies raise more money faster to build bigger plants.

Market analyst Randy Stratton of Sioux Falls says that means more of the profits will go elsewhere but farmers will still benefit from higher demand for corn.

VeraSun operates ethanol plants near Aurora and Fort Dodge, Iowa, and is building a third in Charles City, Iowa. The company says it would use proceeds from the stock sale and other cash to build two additional plants, one in northwestern Iowa and another near Welcome, Minnesota.

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