Ethanol Stocks and Ethanol Investments

Energy is on everyone's mind these days. Even the President of the United States is talking energy, looking for clean-air solutions to end the country's dependence on oil. With so much going on in the world of energy, it's only natural that ethanol come up during the discussion. But…should you invest?

Ethanol Stocks and Ethanol Investment News

With so much going on in the world, investing in anything is tricky. But, since everyone seems to be obsessed with energy, why shouldn't the stock market follow suit? Investing in ethanol sounds like a great idea, in theory. But how are stocks performing in reality?

VeraSun, the number two producer of ethanol, made a pretty good debut on the market last year. Its IPO came out at $28, but after this began to very steadily fall. Meanwhile, a subset of companies specializing in making enzymes for ethanol production is rising on the current market. This will help cut big costs that are essential to commercializing cellulosic ethanol, meaning it will make it cheaper and easier to mass-produce for public use. This seems to promise there is some hope for replacing gasoline as a primary fuel on a large scale.

Interested investors can find a list of companies in the Wilder Hill clean energy index, which covers no less than forty-three different firms. Two of the best performers listed in this index are Diversa and MGP. For both, stocks are very much on the rise. Diversa stock is up a jaw-dropping 108%, and MGP is right on their heels at 81%. With numbers like that, investing sounds like a great idea. But watch reports carefully, and always keep an eye on the market.

Ethanol is only one clean energy solution that has been discussed recently. Oil is out, and all ideas are welcome. But in the light of cold, hard reality, the dreams of hydrogen are fading fast. There are very few distribution systems for hydrogen, making mass production almost impossible, and it's hard to market a product as expensive as hydrogen. Right now, it's just not a viable solution, and the public is starting to realize that fact.

In contrast, however, Wilder expect ethanol firms to continue to do well continuing into 2007. Now that the mid-term elections are over and Congress is decidedly wearing Democratic blue, more politicians keen on government subsidies for fuel will be making their voices heard. Clean energy, and great advantages on the stock market, could very well be within all our grasps.