PRICE/VOLUME SURGE: VeraSun/Ethanol (VSE, PEIX, AVR)

Posted in General 
August 12th, 2008

We are seeing a surge in the price of VeraSun Energy, Corp. (NYSE: VSE) has just opened up 10% or higher at $7.87 after the company beat earnings expectations.

The ethanol producer posted $0.16 EPS vs. $0.02 estimates and revenues were up to $1.02 Billion vs. $920M estimates. At 9:33 AM EST we have seen some 248,000 shares trade hands.

We have outlined a full impact at 247WallSt.com showing how this compares to other ethanol stocks and other ethanol earnings.  The corn crop price-volume report this morning may throw in some added volatility, so don’t just assume this is an automatic winner straight to the moon.  There are many who believe ethanol has a very limited future (and many who don’t).

The 52-week trading range is $3.75 to $17.75 and it does have stock options.

JON OGG
August 12, 2008

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