This post was writtenby Minyanville contributor Ryan Krueger.

Looks like Verasun Energy Corp. (NYSE: VSE), a formerly popular ethanol stock and second largest producer, has won court permission to cancel contracts signed to purchase corn. It is now in bankruptcy. I'm also hearing about a lot of excess ethanol funded by your tax dollars being sold to other countries. That worked out well.

The mistaken policy and debates are endless, the trades are what I am chewing on instead. I think consumers of corn at lower prices are set up for some awfully tasty '09 comparisons for their bottom lines. Corn Products International, Inc. (NYSE: CPO), after Bunge Limited (NYSE: BG) backed away from its take-over, is a name I have re-entered from the long side after closing out my position just after the non-merger was announced and shares traded twice what they are now. They sweeten something you'll eat or drink in the next hour.

Longer term, however, I am even more interested in the ingredients, not the end products. But it's still early. I have been long gone from 2008 corn contracts for quite some time, but am starting to poke around out on the futures curve. On the same day this court ruling was announced abolishing artificial demand, quiet real demand emerged as Mexico was a big buyer of corn.

I'll take a few billion eaters over several million drivers any day.

What happened to ethanol? originally appeared on BloggingStocks on Wed, 03 Dec 2008 15:20:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Stocks end mixed ahead of election; BA, SIRI, STEM, VSE, WFMI

Closing Bell: Stocks end mixed ahead of election; BA, SIRI, STEM, VSE, WFMI originally appeared on BloggingStocks on Mon, 03 Nov 2008 16:18:00 EST. Please see our terms for use of feeds.

Maybe ethanol is not such a good business after all. Stocks in the sectors were really darlings of the market a year ago. Now oil prices are back down and the price of corn is up, although not as much as it was in mid-summer.

One of the two or three largest ethanol companies in the U.S., Verasun (NYSE: VSE) is filing for Chapter 11. According to The Wall Street Journal, "VeraSun made bad bets on the corn market over the summer as grain prices reached record highs."

Shares in the firm traded as high as $17.75 late last year. They had dropped to $0.34.

The entire industry may face a restructuring now. It had built a tremendous infrastructure of new plants and shipping facilities assuming that ethanol would be "the next big thing" in the global fuel business. Corn prices moved up because farmers could not produce enough for food and fuel.

The real giant in the industry is ADM (NYSE: ADM). It has moved up from a 52-week low of $13.53 to almost $21.00. The Verasun news could move the shares south again.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Verasun goes Chapter 11 originally appeared on BloggingStocks on Sat, 01 Nov 2008 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Dow slides as big bulls reverse course; AAPL, CPST up big

Closing Bell: Dow slides as big bulls reverse course; AAPL, CPST up big originally appeared on BloggingStocks on Tue, 12 Aug 2008 16:25:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• JP Morgan upgraded UAL Corp (NASDAQ: UAUA) to Overweight from Neutral based on valuation and expectations for the company to make a capital announcement on next week's conference call.
  
• Citigroup upgraded shares of WPP Group (NASDAQ: WPPGY) to Buy from Hold as they believe the company's diversification will lead to low earnings volatility.
  
• UBS upgraded Aventine Renewable (NYSE: AVR) and VeraSun Energy (NYSE: VSE) to Buy from Neutral based on expectations for margin improvements following recent corn price declines.

• Werner Enterprises (NASDAQ: WERN) was upgraded to Neutral from Underweight at JP Morgan and to Neutral from Underperform at Merrill.
  
• Wachovia raised Yum! Brands (NYSE: YUM) to Outperform from Market Perform.
  
• Entergy (NYSE: ETR) was lifted to Buy from Hold at Jefferies.

Analyst upgrades: UAUA, WPPGY, AVR and VSE originally appeared on BloggingStocks on Fri, 18 Jul 2008 11:27:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• ADC Telecommunications Inc. (NASDAQ: ADCT) beat Q2 estimates and raised its full-year guidance.
• Alcoa Inc. (NYSE: AA) near-term earnings prospects led to an analyst downgrade.
• Banco de Chile (NYSE: BCH) earnings prospects after an acquisition led to an analyst's upgrade.
• Benihana Inc. (NASDAQ: BNHN) posted lower Q4 profits but still beat earnings estimates.
• Bob Evans Farms Inc. (NASDAQ: BOBE) reported solid Q4 results due in part to cost management.
• Brown-Forman Corp. (NYSE: BF.B) easily beat Q4 estimates and offered full-year guidance.
• CMGI Inc. (NASDAQ: CMGI) lowered its guidance, sending shares tumbling 25%.
• Coca Cola Hellenic Bottling Co. (NYSE: CCH) warned of weaker earnings due to economic conditions.
• Conn's Inc. (NASDAQ: CONN) reported solid Q1 results and issued in-line guidance for the year.
• Dick's Sporting Goods Inc. (NYSE: DKS) earnings prospects impress analysts despite recent guidance.
• Guess? Inc. (NYSE: GES) topped Q1 expectations due to strong international expansion.
• Krispy Kreme Doughnuts Inc. (NYSE: KKD) swung to a Q1 profit despite falling revenues.
• Lehman Brothers Holdings Inc. (NYSE: LEH) posted a bigger-than-expected loss on further write-downs.

Continue reading Earnings highlights: Lehman, UBS, Krispy Kreme, Pepsico, Pep Boys and others

Earnings highlights: Lehman, UBS, Krispy Kreme, Pepsico, Pep Boys and others originally appeared on BloggingStocks on Sat, 14 Jun 2008 09:10:00 EST. Please see our terms for use of feeds.

Continue reading Barron's sees ethanol stocks poised for a rebound

Barron's sees ethanol stocks poised for a rebound originally appeared on BloggingStocks on Tue, 10 Jun 2008 17:21:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Lehman initiated the Retail Hardlines Sector with a Neutral. The firm initiated coverage of Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) with Overweight ratings and Best Buy (NYSE: BBY), Bed Bath & Beyond (NASDAQ: BBBY) and Williams Sonoma (NYSE: WSM) with Equal Weight ratings.
  
• Oppenheimer initiated Aventine Renewable (NYSE: AVR), Pacific Ethanol (NASDAQ: PEIX) and VeraSun Energy (NYSE: VSE) with Perform ratings. The firm is cautious on the industry due to higher feedstock costs.
  
• UBS initiated Interpublic Group (NYSE: IPG) and Omnicom Group (NYSE:OMC) with Buy ratings and an $11 target and $62 target, respectively. The firm views valuation as attractive.

• Morgan Stanley assumed coverage of International Flavors (NYSE: IFF) with an Overweight rating.
  
• Wachovia initiated CGI Group (NYSE: GIB) with a Market Perform rating.
  
• Leap Wireless (LEAP) was initiated at RBC Capital with a Sector Perform rating and $55 target.

Analyst initiations: U.S. retail hardlines, biofuels, IPG and OMC originally appeared on BloggingStocks on Fri, 25 Apr 2008 11:21:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Jefferies downgraded shares of FBR Capital Markets (NASDAQ: FBCM) to Hold from Buy and lowered their target to $9 from $14 as they believe the company's investment banking activity will continue to be limited due to the current market conditions for capital raising.
  
• Wachovia downgraded shares of Altus Pharmaceuticals (NASDAQ: ALTU) to Market Perform from Outperform following Genentech's (NYSE: DNA) return of all North American marketing rights to ALTU-238.
  
• Energias de Portugal (OTC: EDPFY) was lowered to Hold from Buy at Citigroup, as they see no valuation catalysts in the near-term.

• JP Morgan removed Teekay LNG (NYSE: TGP) from its Focus List.
  
• Goldman downgraded ORIX Corp. (NYSE: IX) to Neutral from Buy.
  
• Friedman Billings downgraded VeraSun Energy (NYSE: VSE) to Market Perform from Outperform.

Analyst downgrades: FBCM, ALTU and EDPFY originally appeared on BloggingStocks on Thu, 20 Dec 2007 11:47:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• RBC Capital upgraded AbitibiBowater (NYSE:ABH) to Outperform from Sector Perform and said capacity reductions were double what they expected.
  
• Susquehanna upgraded Zumiez (NASDAQ:ZUMZ) to Positive from Neutral based on solid underlying business trends.
  
• Soleil raised its rating on VeraSun Energy (NYSE:VSE) to Hold from Sell, as they are positive on the merger with US BioEnergy (NASDAQ:USBE).

• Goldman upgraded the U.S. steel sector to Attractive from Neutral and upgraded Olympic Steel (NASDAQ:ZEUS) to Buy from Neutral.
  
• The firm also added Nucor (NYSE:NUE) to its Conviction Buy List.
  
• Varian Semi (NASDAQ:VSEA) was raised to Overweight from Market Weight at Thomas Weisel.

Analyst upgrades: ABH, ZUMZ and VSE originally appeared on BloggingStocks on Fri, 30 Nov 2007 11:10:00 EST. Please see our terms for use of feeds.

Pacific Ethanol (NASDAQ: PEIX), the largest West Coast-based marketer and producer of ethanol, closed at $4.64 on Tuesday. Goldman Sachs said on November 27: "We are adding PEIX to the Americas Sell List, as we believe that ethanol equities will continue to lag the energy sector and broader stock market." PEIX overall option implied volatility of 75 is above its 26-week average of 50 according to Track Data, suggesting larger price risks.

VeraSun Energy (NYSE: VSE) operates as an ethanol producer. VSE closed at $10.14 on Tuesday. Friedman Billings says: "Sources tell us House staff hope to complete draft energy legislation today with hopes of a Floor vote next week. Proposed RFS increases exceed existing expectations for near-year corn ethanol legislative demand increases." VSE overall option implied volatility of 64 is above its 26-week average of 53 according to Track Data, suggesting larger price fluctuations.

Aventine Renewable Energy (NYSE: AVR) a producer, marketer and end-to-end distributor of ethanol. Corn futures are down 0.56% to 398.50 and WTI Crude futures are at 94.48 according to Bloomberg. AVR overall option implied volatility of 75 is above its 26-week average of 57 according to Track Data, suggesting larger price risks.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option update: Ethanol producers volatility up as shares at record lows originally appeared on BloggingStocks on Wed, 28 Nov 2007 10:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Citigroup Incorporated (NYSE: C) recently received an unexpected call from a "prominent investment banker" inquiring about a merger with Bank of America Corporation (NYSE: BAC); it was rejected outright, and Citi instead turned to the Abu Dhabi Investment Authority, a part of the Abu Dhabi government, for a $7.5B cash infusion, the Wall Street Journal reported.
• As ethanol demands forced up food prices, and with questions about its capacity to be a significant oil substitute, demand has slowed, according to the Wall Street Journal, which doesn't help the prospects of newly public companies such as VeraSun Energy Corporation (NYSE: VSE) and Pacific Ethanol Inc (NASDAQ: PEIX).
• The Financial Times reported that the SRM hedge fund increased its stake in British bank Northern Rock to 8.5% yesterday, probably in order to block Virgin Group from taking over the lender. SRM and RAB Capital, with a combined stake in Northern Rock of more than 15%, are backing a rival bid for the bank by British private equity fund Oilvant.

• A federal agency has subpoenaed Countrywide Financial Corporation (NYSE: CFC), in an attempt to determine whether the company abused the bankruptcy system in two Florida foreclosure cases, according to the New York Times.

• MarketWatch's Herb Greenberg believes Lululemon Athletica Inc (NASDAQ: LULU) CEO Bob Meers may have "exaggerated a bit" about his job history. While it's true Mr. Meers was employed by Reebok International, he was not president and CEO of the brand for the length of time he stated, nor was he the president of the Rockport shoe and Greg Norman brands.

Newspaper wrap-up: Demand slows for ethanol, forcing up food prices originally appeared on BloggingStocks on Wed, 28 Nov 2007 08:53:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: Clayton, PharmaNet Development, Royal Bank of Scotland, Progressive Gaming and WSFS Financial were today's noteworthy downgrades:

• JMP Securities downgraded shares of Clayton Holdings Inc (NASDAQ: CLAY) to Market Perform from Outperform citing lack of visibility in the non-agency MBS market. William Blair also downgraded shares to Market Perform from Outperform after the company's in-line quarter, to reflect lowered estimates and uncertainty regarding a recovery time.
• Jefferies downgraded shares of PharmaNet Development Group Inc (NASDAQ: PDGI) to Hold from Buy as they believe departures of board and management executives have introduced new risk.
• The Royal Bank of Group PLC (NYSE: RBS) was lowered to Sell from Buy at Citigroup, as they are negative on the company's acquisition of ABN Amro Holding NV (NYSE: ABN).
• ThinkEquity downgraded shares of Progressive Gaming International Corporation (NASDAQ: PGIC) to Accumulate from Buy following Friday's announcement that it lost its post-trial motions and will proceed to appeals court in the Webb lawsuit. PGIC will have to post a $20M bond, which is more than the firm expected.
• B. Riley downgraded shares of WSFS Financial Corporation (NASDAQ: WSFS) to Neutral from Buy after they lowered their estimates to reflect the company's higher projected on-interest expense.

• Goldman removed Hewlett-Packard Company (NYSE: HPQ) from its Conviction Buy List.
• Calyon downgraded VeraSun Energy Corporation (NYSE: VSE) to Add from Buy.
• Merrill Lynch downgraded Aetna Incorporated (NYSE: AET) to Neutral from Buy.
• Friedman Billings downgraded Baker Hughes Incorporated (NYSE: BHI) to Market Perform from Outperform.

Analyst downgrades: CLAY, PDGI, RBS, PGIC and WSFS originally appeared on BloggingStocks on Mon, 29 Oct 2007 10:57:00 EST. Please see our terms for use of feeds.

• Jefferies upgraded shares of Lincare Holdings (NASDAQ: LNCR) to Buy from Hold on valuation as they now believe the likelihood that Congress could severely cut Medicare oxygen reimbursement this year is priced into shares.
  
• Jefferies also upgraded Gentiva Health (NASDAQ: GTIV) to Buy from Hold on valuation, as they believe the recent sell-off is overdone.
  
• RBC Capital raised Five Star Quality Care (AMEX: FVE) to Outperform from Sector Perform, as they believe the company's Q3 report could be better than expected and that census and outlook are improving.
  
• CIBC upgraded shares of Arris Group (NASDAQ: ARRS) to Sector Outperformer from Sector Performer on valuation as they believe the weakness in the stock is overdone.
  
• Deutsche Bank upgraded shares of U.S. Steel (NYSE: X) to Buy from Hold, as they expect the company to be a major beneficiary of rising raw material costs. Further, Deutsche thinks Lone Star and Stelco will be catalysts for earnings growth in 2008.

• VeraSun Energy Corporation (NYSE: VSE) was upgraded to Overweight from Equal Weight at Morgan Stanley.
  
• UST Inc (NYSE: UST) was upgraded to Buy from Neutral at Goldman.
  
• JP Morgan upgraded BASF AG (OTC: BASFY) to Overweight from Neutral.
  
• Avondale Partners upgraded Polaris Industries (NYSE: PII) to Market Outperform from Market Perform.

Analyst upgrades: LNCR, GTIV, FVE, ARRS and X originally appeared on BloggingStocks on Wed, 17 Oct 2007 10:44:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Friedman Billings downgraded Aventine Renewable Energy (NYSE: AVR) and Pacific Ethanol Inc (NASDAQ: PEIX) to Underperform and VeraSun Energy Corporation (NYSE: VSE) was downgraded to Market Perform from Outperform. The firm said the ethanol market has become increasingly challenging as spot market prices have declined by 30% in the past few months and expect pressure to remain through 2008 as the industry's growing pains continue.
  
• Morgan Stanley downgraded shares of BT Group (NYSE: BT) to Underweight from Equal Weight on valuation and regulation uncertainty ahead of Ofcom's first consultation document next week.
  
• AMR Corporation (NYSE: AMR) was downgraded to Sell from Neutral at Goldman to reflect the company's U.S. exposure as they expect the U.S. economy to slow.
  
• Banc of America downgraded shares of Kyphon Inc (NASDAQ: KYPH) to Neutral from Buy on valuation as the spread on the acquisition by Medtronic Inc (NYSE: MDT) has now narrowed.

• Pepsi Bottling Group Inc (NYSE: PBG) was downgraded to Market Perform from Outperform at Bernstein.
  
• Oppenheimer downgraded Signature Bank (NASDAQ: SBNY) to Neutral from Buy.
  
• ThinkEquity downgraded BioCryst Pharmaceuticals (NASDAQ: BCRX) to Accumulate from Buy.
  
• Merrill Lynch downgraded Luxottica Group (NYSE: LUX) to Neutral from Buy.

Analyst downgrades: Ethanol sector, BT, AMR and KYPH originally appeared on BloggingStocks on Thu, 20 Sep 2007 10:45:00 EST. Please see our terms for use of feeds.

"Although the ongoing sub-prime scare compounded by private equity financing troubles have dealt markets a severe blow," commodity expert Eric Roseman contends, "This is just another correction in a long series of market hiccups over the last few years."

The editor of Commodity Trend Alert notes, "I doubt what is transpiring now will dramatically alter the secular bull market in commodities and global stocks."

He continues, "Private equity deals have been a big chunk of stock-market volume over the last 12 months. But they're almost small potatoes compared to the massive liquidity rush coming our way, courtesy of global central banks, namely in Asia, with a few trillion dollars' worth of reserves now heading into common stocks."

Roseman explains, "Fed-up with poor returns on dollar-denominated U.S. Treasury bonds, Asian and other central banks and their respective government-sponsored pension funds are starting to direct capital flows to global stock markets to fund future entitlement programs." That move alone, he notes, will ultimately provide an incredible liquidity rush to all markets, including commodities.

Continue reading High value in ethanol and grain

High value in ethanol and grain originally appeared on BloggingStocks on Mon, 06 Aug 2007 15:45:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Citigroup initiated shares of VeraSun Energy (NYSE: VSE) and BioFuel Energy with Buy ratings, as the firm believes the ethanol industry is reaching an inflection point as profitability should be much improved in 2008.

• BioFuel (NASDAQ: BIOF) was also initiated with a Hold rating at AG Edwards on valuation and an Overweight rating at JP Morgan, who believes BioFuel has good growth prospects but trades at a discount relative to peers.

• Electronic Arts (NASDAQ: ERTS) was initiated with a Neutral rating at Cowen, citing the company's rich valuation and mixed growth outlook.

• Cowen resumed coverage of Take-Two Interactive Software (NASDAQ: TTWO) with an Outperform rating, as the firm believes TTWO is positioned for a strong 2H07 given the Grand Theft Auto IV and other titles...

• CDC Corporation (NASDAQ: CHINA) was initiated with a Buy rating and $12 target at Montgomery.

• Oppenheimer started shares of Chelsea Therapeutics (NASDAQ: CHTP) with a Buy rating and $12 target.

• Banc of America initiated shares of Charming Shoppes (NASDAQ: CHRS) with a Neutral rating and $11 target.

• Raymond James initiated shares of Geokinetics (AMEX: GOK) with a Market Perform rating.

• King Pharmaceuticals (NYSE: KG) was initiated at Goldman Sachs with a Neutral rating and $19 target.

Analyst initiations 7-25-07: BIOF, ERTS and TTWO originally appeared on BloggingStocks on Wed, 25 Jul 2007 11:33:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Wachovia upgraded Lee Enterprises (NYSE: LEE) to Market Perform from Underperform on valuation.

• RBC Capital raised Pep Boys (NYSE: PBY) to Sector Perform from Underperform citing upside potential from its real estate monetization strategy.

• Cumulus Media (NASDAQ: CMLS) was upgraded to Hold from Sell at Citigroup based on the proposed buyout offer.

• VeraSun Energy (NYSE: VSE) was upgraded to Hold from Sell at Soleil based on the acquisition of three 110mgy ethanol projects from ASAlliance.

• Gabelli upgraded Acuity Brands (NYSE: AYI) to Hold from Sell following the company's announcement that it will pursue a tax-free spin-off of its specialty products business...

• Keefe Bruyette upgraded Delphi Financial Group (NYSE: DFG) to Outperform from Market Perform.

• RightNow Technologies (NASDAQ: RNOW) was upgraded to Outperform from Neutral at Credit Suisse.

• Pacific upgraded Secure Computing (NASDAQ: SCUR) to Outperform from Sector Perform.

• Lehman raised Xcel Energy (NYSE: XEL) to Equal Weight from Underweight.

• Stanford upgraded Amylin Pharmaceuticals (NASDAQ: AMLN) to Buy from Hold.

Analyst upgrades 7-24-07: CMLS, DFG, PBY and RNOW originally appeared on BloggingStocks on Tue, 24 Jul 2007 10:52:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Barron's Online's (subscription required) "Inside Scoop" section reported that VeraSun Energy Corp (NYSE: VSE) director Steven Kirby has bought almost $608k worth of stock on May 31, according to SEC data.
• Google Inc (NASDAQ: GOOG) and Salesforce.com Inc (NYSE: CRM) are joining together to go after small businesses, reported the Wall Street Journal (subscription required).
  
• The Wall Street Journal also reported that Amazon.com Inc (NASDAQ: AMZN) would increase its investment in China.
• The Financial Times (subscription required) reported that News Corporation (NYSE: NWS) CEO Rupert Murdoch met with representatives from the Bancroft family yesterday for five hours to discuss Murdoch's $5B takeover bid for Dow Jones and Company Inc (NYSE: DJ).
• Unions from more than a dozen countries have demanded that the banks bidding to take over ABN Amro Holdings (NYSE: ABN) hold talks with workers' representatives, reported the Financial Times.

• Engadget.com reported that, as of 6:33am, the Apple Inc (NASDAQ: AAPL) online store is down, indicating a new product to be released today.

Newspaper wrap-up 6-05-07: Amazon ramping in China originally appeared on BloggingStocks on Tue, 05 Jun 2007 09:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Banc of America downgraded shares of Andersons Inc. (NASDAQ: ANDE) to Neutral from Buy, as well as VeraSun Energy (NYSE: VSE), Pacific Ethanol (NASDAQ: PEIX) and Aventine Renewable Energy (NYSE: AVR) to Sell from Neutral. The firm believes new ethanol supply will depress ethanol's premium to gasoline, drive corn prices higher and pressure distillers' grains values.
• Novacea Inc. (NASDAQ: NOVC) was downgraded to Peer Perform from Outperform at Bear Stearns based on valuation and lack of catalysts until 2H08; the firm believes the company's deal with Schering-Plough (NYSE: SGP) is a positive.
• Aimco Properties (NYSE: AIV) was downgraded to Underweight from Equal Weight at Lehman, as the firm does not view AIV as an attractive takeover target.

• EMC Corp. (NYSE: EMC) was downgraded to Peer Perform from Outperform at Bear Stearns based on valuation.
• UBS downgraded shares of Iomai Corp. (NASDAQ: IOMI) and ICICI Bank (NYSE: IBN) to Neutral from Buy.
• Goldman Sachs downgraded Parexel Intl. (NASDAQ: PRXL) to Neutral from Buy and PRA International (NASDAQ: PRAI) to Sell from Neutral.
• Janus Capital Group (NYSE: JNS) was downgraded to Neutral from Buy at Merrill Lynch.
• Security Bank (NASDAQ: SBKC) was downgraded to Hold from Buy at Sandler, O'Neill & Partners on valuation.
• Bradley Pharmaceuticals (NYSE: BDY) was downgraded to Hold from Buy on valuation at Matrix USA.

Analyst downgrades 5-31-07: Ethanol producers to Sell originally appeared on BloggingStocks on Thu, 31 May 2007 11:39:00 EST. Please see our terms for use of feeds.