Apparently, all's not well in the market for the booming ethanol industry. After showing a strong performance in the second quarter, ethanol producer companies' stock prices slid a considerable amount during the third quarter. According to a report produced by analyst Friedman Billings Ramsey, ethanol stocks fell in correlation with ethanol market prices, 41 and 55 percent, respectively. Pacific Ethanol and VeraSun Energy sank 39 percent, Andersons fell 18 percent while Archer Daniels Midland lost just 8 percent.
The poor performance even kept some ethanol producers out of the market for the time being. Hawkeye Holdings, for instance, postponed their initial public offering citing unfavorable market conditions.
Investors are now keeping a keen eye on quarterly earnings announcements. ADM will release their earnings on October 31, VeraSun on November 7, Andersons on November 11 and Pacific Ethanol will announce their quarterly earnings on November 15.
[Source: Associated Press via Houston Chronicle]