The leading ethanol related stocks spiked up again, thanks to a positive earnings report by Archer Daniels (ADM), which Cramer predicted would sell off today. Speaking of Cramer, if you watched Mad Money yesterday (5/1), he went into detail about the ethanol industry. Man is this guy pumping the industry or what?! But remember, it’s not just him. Last week it was President Bush; lately I’ve seen all kinds of “green” commercials by GM and Ford Motor; and don’t forget, Bill Gates. All of this happened in the past few weeks. I actually thought there would be a correction about a week ago, but the news keeps on coming. Anyway, if you haven’t already read it or you’re not to sure what types of ethanol plays are out there, you can read my ethanol write-up.
[Intuitive] Top Ethanol Picks
[click HERE for list of all ethanol related stocks I could find]
- Pacific Ethanol (PEIX) – My favorite as of today. This pick used to be in the [Intuitive]ScoreCard… thought it would sell off but it didn’t. The news that Gates invested in the stock seems to be new news to a lot of people. Ha! The stock has formed a bullish ascending triangle (rising bottoms). The stock is currently in a breakout and has made my momentum screen.
- Archer Daniels Midland (ADM) – One of the world’s largest agricultural processors, they process (you guessed it…) corn for ethanol. Their 3Q profit grew 29% thanks to higher demand for ethanol (sale price goes up) and better corn prices (lower expenses). [ Higher sales – Lower costs = higher profit margin].
- Green Plains (GPRE) – This one’s a spec. Not to many people know about this stock since it’s relatively new. Probably because Pacific Ethanol is stealing the show. Low volume… for now. Could see $60.00 in a short time.
MarketWatch/Articles I’m Reading
- First, this one’s for Gary. Gold Corp (GG) is up 15% in three days! And he has options so multiply that a couple of times!! Go ahead and click here again. Bwa ha ha!!
- Timet zooms up again. But if it goes down tomorrow, we know it has consolidating tendancies.
- Remember: Iran jitters and weak dollar = super gold!
- Spot price for gold hit $666.00, uh, does that mean we should sell?
- Chesapeake, a natural gas company, had record gas production for the 19th consecutive quarter… that is impressive.
- I detected a HUGE spike in Diversa Corp (DVSA) at 2pm today.. Something is going on here.
- Top scientist predicts no H5N1 bird flu virus in United States this year.
- Nine tech IPOs you should wait for. Hey, I remember seeing GoDaddy commercials during the Super Bowl!
- This lady caused the sell off yesterday– Maria Bartiromo, aka, the “money honey.”
