Investing News Blog

Tuesday, February 07, 2006

Ethanol Investing

Investing in ethanol fuels has been compared to investing in technology companies in the early 90s when the industry was still in it's early stages of evolution. The alternative fuel industry is still an unproven industry, making it risky to invest in ethanol fuels. One of the pure ethanol fuel companies, Pacific Ethanol received a boost in confidence when the richest man in the world invested $84 million into the Californian based company. But it can be a challenge for the average investor to decide where to put their money if they want to invest in the alternative fuel industry.
Fortune magazine has suggested investing in businesses that have interests in not just ethanol fuel, decreasing the risk of having all their eggs in the one unproven basket.
Investing in ethanol is risky, but here are a few ways that small investors can get a piece of the action
"So there are going to be many, many more pets.coms than eBays in agrifuels. More Time Warners than Microsofts. Indeed, many of the venture capitalists bankrolling tomorrow's ethanol IPOs are the same folks who funded the '90s dot com debacle." Fortune
# Socially Responsible Investing

2 Comments:

  • I believe that corn/cellulose ethanol and biodiesel fuel is the key to breaking away from dependence on foreign and domestic oil companies. There are 180,000 gas stations and about 600 selling E85. In CA there are only 4! I am totally against E85 because it still allows the oil companies to have their hand in the cookie jar! Cut them off completely. I believe in the principle of supply and demand but there is an exception with oil companies. It should be demand and supply. The problem is not with the production of bio-fuels but with availability and demand. What some venture capitalists should do is to construct a few hundred bio-fuel stations along the major interstate highways used by the public but more importantly by interstate commerce. The would be completely independent from oil companies. This will create the demand and the supply and production will follow. Moreover, the car manufacturers will be forced to build more bio-fuel vehicles. Millions would buy such vehicles. I know I would.

    By Anonymous Anonymous, at 9:21 PM  

  • Yeah, it's the dollar that leads the way to progress. Why would the oil companies that are earning billions every year want to change to something where they make nothing?

    If they could figure out a way to charge us for using the sun, Im sure everything would be solar powered.

    By Anonymous Investing Value Blog, at 12:27 AM  

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