Green Plains Revenue Spikes; Proposed Ethanol Rules Could Boost Demand (GPRE, CZZ, ANDE, MGPI, VRNM, RSC)

Tickerspy’s Ethanol and Biofuel Index

ETHANOL AND BIOFUEL INVESTING IDEAS

• Popular long ideas: ADM, PEIX, CZZ
• Popular short ideas: PEIX, VRNM, ADM
• Top dividend plays: MGPI, ADM, ANDE
• Pro favorites: ADM, GPRE, CZZ

Sign up and track the Ethanol and Biofuel Index performance

ETHANOL AND BIOFUEL COVERAGE

Firms engaged in the production of ethanol or other biofuels.

• Negative Movers: Share Sale News Bites Back (SYNM, BTX, YARIY, FCEL, CTIC)
• Rising Oil Boosts The Fortunes Of Biofuel Stocks (SYNM, VRNM, BIOF, ADM, CZZ)
• Subsidy Criticism Clouds Ethanol Stocks Outlook (CZZ, PEIX, ANDE, SYNM, MGPI, BIOF, VRNM)

ETHANOL AND BIOFUEL CHART

ETHANOL AND BIOFUEL METRICS

Avg. Market Cap:	$1.9B
Avg. P/E Ratio:	20.0
Avg. Div Yield:	0.3%

Omaha, Nebraska-based Green Plains Renewable Energy (GPRE) gapped higher on Thursday after announcing $15.6 million or 58 cents per share in first-quarter net income, but shares quickly reversed their course, slipping into negative territory. The performance was up from a loss of -$9.3 million or -38 cents per share in the same period last year, and revenues nearly doubled to $426.5 million. President and CEO Todd Becker said the company beat its expected operating capacity with 124.3 million gallons of ethanol produced for the period, and added, “We expect to see higher production and efficiency levels going forward.”

After leading the Ethanol and Biofuel Stocks Index higher to start the day, Green Plains is now the sector’s lone laggard, slipping by -2%. As a whole, the Index has edged higher than the S&P 500 by 1.5% over the past month, thanks in part to notable rallies by Cosan (CZZ) and The Andersons (ANDE).

MGP Ingredients (MGPI), which serves the packaged food, alcohol, and biofuel markets, is following Cosan higher for today’s session on sparse news. Meanwhile, Verenium (VRNM) and Rex Stores (RSC) also started the day higher higher, but the latter has since slipped into the red.

Rex Stores, a former electronics retailer turned alternative energy producer, received an upgrade to Buy from Deutsche Bank earlier this week. The analyst said he sees an additional 20% or more upside to the stock’s value, according to Monday’s coverage by Rex Stores hometown Dayton Business Journal.

It will be interesting to see how the Ethanol and Biofuel Stocks Index performs throughout 2010. President Obama touted biofuels during a speech in Macon, Missouri yesterday, and Green Plains’ Becker said the firm expects passage of the proposed E15 waiver would have a positive impact on demand amid already improving margins. Investors can track the Ethanol and Biofuel Stocks Index for performance trends and a suite of other metrics at tickerspy.com.

Tags: ANDE, CZZ, GPRE, MGPI, RSC, VRNM