“It’s safe to say that majority of producers are in the red,” said Rick Brehm, president of Lincolnway Energy in Nevada.
The losses came quickly for ethanol, which as recently as November enjoyed profit margins averaging 71 cents per gallon, highest in five years, according to Iowa State University reserach.
SEE all HERE
SkunK
Sunday, February 12, 2012
Subscribe to:
Post Comments (Atom)
Posts
2 comments:
All i want to understand???...Is GERS still projected to be worth a conservative market cap of 2.5 Billion dollars someday ....Of course assuming that current US energy policy remains in place?
Long and strong
Currently, with annual revenues of about $30 Million, if the YAGI debt were refinanced, I would say that the conservative estimate for the market cap at those revenues is about $100 Million. If they are able to double the amount they get from corn oil royalty to $60 Million, then the debt is no longer an issue. It can be paid off with no problem within a year. That would bring them closer to $300 Million. As the revenue increases, the market cap goes up (assuming they don't take on more debt and there is no risk of losing that revenue). For the market cap to get into the billions, they would need to generate revenues at least in the $250 Million+ range, and would need to have significant potential for even more growth. This would require that they create new products/technologies to sell. In my opinion, all of this is possible, if they can stop the patent infringers from taking market share.
Post a Comment