Ethanol Redux

June 23, 2006

If you missed VeraSun Energy’s strong opening and first-day run, then relax. Another strong ethanol deal is on the way. Aventine Renewable Energy Holdings will be a solid IPO. The sector comes with high expectations about the future market for ethanol and great uncertainty about individual companies. Uncertainty tends to devalue established companies, but it’s called “potential” in an emerging sector and drives interest in the deal, pushing the stock higher. [more]

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