Saturday, January 10, 2009

Pacific Ethanol Shuts Down Madera Plant

Pacific Ethanol (PEIX) continues to fight to survive, as they have now shut down the Madera plant, although they say it's only a temporary move.

This follows their disastrous third quarter, where "Losses for the company widened by an extraordinary amount, surging to $54.9 million, or 98 cents a share, in contrast to the same quarter last year where losses were at $4.8 million."

None of this will end any time soon, as on average ethanol is 60 cents higher in cost than gasoline, and make gas prices higher when included in the mix. Consequently, demand continues to fall, in spite of the misguided subsidies offered by the government.

Take the subsidies out of there, and the real story would be far worse for this ongoing debacle that is becoming more of a religion than at legitimate alternative.

This has pummeled the company's stock, which on January 9, 2008 was at $8 a share, now it stands at a pathetic 56 cents a share.

We need to end this ignorant pursuit of corn-based ethanol, and cellulosic ethanol as well. Those of the ethanol religion are now attempting to get the mind of the public off the corn-based ethanol debacle and make it look like the even more expensive cellulosic ethanol is the answer.

1 comment:

maicher said...

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