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RE: stock to buy- GPRE



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Well the concept of energy loss in any conversion technique is not new. Energy is lost in an electric motor. Corn absorbs energy from the sun and fertilizer, I guess. Seems to be pretty efficient. What matters as far as the stock is concerned is dollars in vs. dollars out. They are getting much in the way of dollars out. My money is in.

Jim Bronke
Avionics and System Engineering





-----Original Message-----
From: unicorn@xxxxxxxxxxxxxxx [mailto:unicorn@xxxxxxxxxxxxxxx]On Behalf
Of Alex Matulich
Sent: Tuesday, July 01, 2008 10:57 AM
To: omega-list@xxxxxxxxxx
Subject: Re: stock to buy- GPRE


Jim Bronke wrote:
>If a stock that is in a long term downtrend finally has a huge surge in
>earnings it can sure be a surprise when the stock resumes the downtrend even
>when the company announces a stock repurchase at 67% above the current
>market price.

That's an expression of earnings yield.  The other factor you have
to look at is return on assets.  If that is also high compared to
other stocks in a similar industry, then yes it may be a good buy.

>Ethanol will be a fuel of the future as we just don't have the oil.

There are differing opinions on that.  Currently the production of
ethanol consumes more energy than you can get from the ethanol. The
government is heavily subsidising ethanol production, not to produce
fuel, but to satisfy special-interest agribusiness lobbyists.

Ethanol energy costs must surpass break-even before it becomes a
fuel for the future.

-Alex