VSUNQ - VeraSun Energy Corporation (Bankrupt) [Archive] - Stock Market Forum, Penny Stocks, FOREX, NASDAQ, AMEX, NYSE, Live Chat

missionsman1

07-22-2007, 01:44 AM

Why This Stock Is a Winner
By Rex Moore July 18, 2007
10
Recommendations
If you could wave a magic wand and bestow just one characteristic on all of your investments, what would it be? (Besides the ability to print money, that is.)

I began thinking about this after reading Tom Gardner's "A 25-Bagger in Five Years," in which he identified three things that give a company the chance to achieve outsized gains over the years -- like 25-baggers that turn $5,000 into $125,000. Of the three he mentions (and actively screens for in Motley Fool Hidden Gems), one characteristic is most important to me: a high level of insider ownership.

Why it matters
This makes sense, right? Think about any of your major personal investments:

You are a stockholder with a good deal of your wealth riding on this company's performance.
Founders and managers with high levels of ownership also have their wealth riding on the company's performance.
They are doing everything they can to increase the long-term value of their stock -- of your stock.
Having a wonderful time ...
With their reputations, their livelihoods, and their careers on the line, you can be fairly sure these managers and board members are motivated to do what's best for the company. It's like having someone on the inside working for you. Every day.

What is the opposite of that? Businesses in which management has very little tied up in company stock ... in which actions may be motivated by things that actually harm the stock's performance, like office politics, power plays, or working more with an eye on the clock (is it quittin' time yet?) than on improving the business model. Or, even worse, management that rewards itself with high salaries and bonuses that have nothing to do with outstanding performance.

Now, don't be chagrined if you find that some of your larger holdings have a low percentage of insider ownership. For example, AT&T (NYSE: T) is only 0.07% owned by insiders. Genentech (NYSE: DNA) sports virtually zero insider ownership. Their size makes it awfully tough for anyone to own a significant share of the entire business.

But smaller companies are a much different story. In small-cap land, CEOs and managers with high levels of ownership are much more likely to rise above the mediocrity and work toward the common goal of great stock performance.

For instance
I ran a screen for some companies with high insider ownership, but I went a bit beyond that. The following businesses also have strong sales and earnings growth, high margins, and high returns on equity -- a potentially winning combination.

Company
Insider
Ownership
Sales
Growth*
EPS
Growth*
Net
Margin*
ROE*

Global Industries (Nasdaq: GLBL)
22%
59%
401%
18.6%
35.9%

Dril-Quip (NYSE: DRQ)
33%
25%
89%
20.3%
22.0%

Verasun Energy (NYSE: VSE)
48%
96%
3,731%
12.3%
21.9%

Vasco Data Security (Nasdaq: VDSI)
26%
56%
118%
18.5%
43.1%

Quality Systems (Nasdaq: QSII)
36%
32%
42%
21.1%
40.6%

*Trailing 12 months. Data provided by Capital IQ, a division of Standard & Poor's.

And beyond
Insider ownership, especially in smaller companies, is one positive indicator in the quest for tomorrow's multibaggers. There are many more, of course, but insider ownership is one of the core variables we screen for in Hidden Gems.

The process is working. Tom and his analysts are averaging 65% total returns for their recommendations, versus 27% for identical amounts invested in the S&P 500. We invite you to take a free trial and look through all of our active recommendations. There's no obligation to subscribe.

This article was originally published on Feb. 21, 2006. It has been updated.

Fool analyst Rex Moore yearns for the return of Green Acres. At time of publication, he owned no companies mentioned in this article. Quality Systems is a Motley Fool Stock Advisor pick. The Fool is investors helping investors.

BadThad

07-22-2007, 12:42 PM

Thanks missionsman1.....good find. I still think this is the best ethanol play out there. I'm going to get back in next week, looks like a good bottom play to me.

missionsman1

07-23-2007, 08:45 AM

Lets start the week out with some BIG NEWS!

Acquisition to Boost Company's Production Capacity to One Billion Gallons by End of Next YearBROOKINGS, S.D., July 23 /PRNewswire-FirstCall/ -- VeraSun Energy Corporation (NYSE: VSE), one of the nation's largest ethanol producers, today announced plans to acquire three ethanol plants with a combined annual production capacity of 330 million gallons per year (MMGY) from ASAlliances Biofuels, LLC for $725 million.

The three facilities are each expected to operate at 110MMGY and are located in Albion, Nebraska, Bloomingburg, Ohio, and Linden, Indiana. The acquisition should become final in 30 to 45 days and is subject to customary closing conditions.

The facilities will provide VeraSun with immediate production capacity and revenue. The Linden facility will begin startup operations this month, followed by Albion in the fourth quarter and Bloomingburg by the end of first quarter 2008. The acquisition will increase VeraSun's production capacity to approximately one billion gallons by the end of 2008.

'This is a unique opportunity to acquire immediate production and revenue at a cost similar to that of building new facilities,' said Don Endres, VeraSun Chairman and CEO. 'The capacity gained through this acquisition underscores a commitment to our long-term growth strategy while maintaining our focus on being an efficient, low-cost ethanol producer.'

'We are pleased that the transaction allows us to continue our investment in ethanol through VeraSun,' said Tom Manuel, ASAlliances Biofuels President and CEO. 'VeraSun brings experience and expertise to the operation of large, efficient biorefineries and we believe they are the premier platform company in the renewable fuels industry.'

VeraSun currently has 340MMGY of production capacity through its operating facilities in Aurora, South Dakota and Fort Dodge and Charles City, Iowa. VeraSun has another 330MMGY of production presently under construction and development in Hartley, Iowa, Welcome, Minnesota, and Reynolds, Indiana. The facilities being acquired are sister facilities to VeraSun's current fleet as they are all designed by ICM and built by ***en, Inc.

The company is funding the acquisition through $200 million of equity, $250 million of cash and $275 million in project financing. The acquisition is expected to be accretive to earnings and free cash flow within the first 12 months without accounting for potential synergies.

'Reaching one billion gallons of annual production will be a benchmark for VeraSun and represents a maturing of the renewable fuels industry,' said Endres. 'We believe scale and efficiency are important as we continue to focus on reducing production and distribution costs and increasing value for our shareholders, customers and plant communities.'

Current ASAlliances plant employees will become VeraSun employees at the conclusion of the sale.

Morgan Stanley & Co. Incorporated is serving as the financial adviser, and Cravath, Swaine & Moore LLP is acting as legal counsel for VeraSun on this transaction.

VeraSun will hold a conference call at 10 a.m. EDT/9 a.m. CDT on Monday, July 23. Media can participate by calling 1-800-259-0251 and entering access code 90286460. International callers must enter the same access code after dialing 617-614-3671 to access the call.

VeraSun Energy Corporation - Plant Profile
Operating Facilities
VeraSun Aurora (SD) - 120MMGY (2003 Startup)
VeraSun Fort Dodge (IA) - 110MMGY (2005 Startup)
VeraSun Charles City (IA) - 110MMGY (2007 Startup)
Current Operating Capacity - 340MMGY

Facilities Under Construction or Development
VeraSun Hartley (IA) - 110MMGY (Q1 2008 Startup)
VeraSun Welcome (MN) - 110MMGY (Q1 2008 Startup)
VeraSun Reynolds (IN) - 110MMGY (Q4 2008 Startup)
Capacity Under Construction and Development - 330MMGY

Facilities From Acquisition
Linden (IN) - 110MMGY (Q3 2007 Startup)
Albion (NE) - 110MMGY (Q4 2007 Startup)
Bloomingburg (OH) - 110MMGY (Q1 2008 Startup)
Capacity Under Acquisition - 330MMGY

Totals
5 Plants, 560MMGY by end of 2007
8 Plants, 890MMGY by end of Q1 2008
9 Plants, One Billion Gallons of Annual Production Capacity by end of 2008

About VeraSun Energy Corporation

VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, South Dakota, is a leading producer of renewable fuel. The Company has three operating ethanol production facilities located in Aurora, SD, Fort Dodge, IA, and Charles City, IA. Two facilities are currently under construction in Hartley, IA, and Welcome, MN, and an additional plant is under development in Reynolds, IN. VeraSun is in the process of acquiring another three biorefineries currently under construction in Albion, NE, Bloomingburg, OH and Linden, IN. Upon completion of the new facilities and those being acquired, VeraSun will have an annual production capacity of approximately one billion gallons by the end of 2008. The Company also has plans to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production.

The Company markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(TM). VE85(TM) is now available at more than 90 retail locations. For more information, please visit VeraSun's Web sites at http://www.verasun.com or http://www.VE85.com.

This press release contains 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions and assessments made by VeraSun's management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements are not guarantees of VeraSun's future performance and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by any forward-looking statements. Some of the factors that may cause actual results, developments and business decisions to differ materially from those contemplated by any forward-looking statements include the volatility and uncertainty of corn, natural gas, ethanol and unleaded gasoline prices; the results of VeraSun's hedging transactions and other risk mitigation strategies; operational disruptions at VeraSun's facilities; VeraSun's ability to implement its expansion strategy as planned or at all; VeraSun's ability to locate and integrate potential future acquisitions; VeraSun's ability to develop an oil extraction business; development of infrastructure related to the sale and distribution of ethanol; VeraSun's limited operating history; excess production capacity in VeraSun's industry; VeraSun's ability to compete effectively in its industry; VeraSun's ability to implement a marketing and sales network for its ethanol; changes in or elimination of governmental laws, tariffs, trade or other controls or enforcement practices; environmental, health and safety laws, regulations and liabilities; VeraSun's reliance on key management personnel; future technological advances; limitations and restrictions contained in the instruments and agreements governing VeraSun's indebtedness; VeraSun's ability to raise additional capital and secure additional financing; VeraSun's ability to implement additional financial and management controls, reporting systems and procedures; and costs of construction and equipment.

A further list and description of these risks, uncertainties and other factors can be found in VeraSun's annual and quarterly reports filed with the Securities and Exchange Commission. Copies of those reports are available online at http://www.sec.gov or on request from VeraSun. VeraSun does not assume any obligation to update any forward-looking statements as a result of new information or future events or developments.

SOURCE VeraSun Energy Corporation

Source: PR Newswire (July 23, 2007 - 3:00 AM EST)

News by QuoteMedia

missionsman1

07-23-2007, 09:56 AM

Live Conference call at 10 am eastern time, which is in about 5 minutes.

http://biz.yahoo.com/cc/3/83503.html

BadThad

07-23-2007, 11:14 AM

Thanks missionman! Been too busy this morning to see, I'm back in again. Loving this company!

BadThad

07-23-2007, 11:39 AM

Go Baby Go!

missionsman1

07-24-2007, 12:15 AM

Total of 1 billion a year production when all plants come online! Earnings out on August 2nd i believe.

Ciao

07-24-2007, 02:12 AM

good news MM
I flowed close and at 14.05 I got in
Have you noticed the 500K buy at the closed?? :rolleyes:

BadThad

07-24-2007, 10:06 AM

I got back in at 14.00.....GLAD I DID! Looks like this sucker is going to run up again....$14.62 this morning and rising. YAY! Ethanol is HOT HOT HOT!

missionsman1

07-24-2007, 10:24 AM

Good entry guys!

RENEWED ENERGY: Verasun Acquisition Sets Bar For Ethanol Plant Price
Monday 07/23/2007 6:01 PM ET - Dow Jones News
By Jessica Resnick-Ault A DOW JONES NEWSWIRES COLUMN

HOUSTON (Dow Jones)--As more ethanol production facilities are built across the U.S. Midwest, producers of the corn-based fuel are turning to growth by acquisition rather than building new plants.
VeraSun Energy Corp.'s (VSE) $725 million acquisition of ASAlliances Biofuels LLC's three ethanol plants sent a strong message Tuesday to industry watchers that consolidation in the independent ethanol sector has arrived.
"It's becoming much more difficult to find sites that have available corn at a low cost," VeraSun Chief Executive Don Endres said Tuesday.
Because securing locations for new plants is increasingly difficult, companies are reaching for existing assets, made more appealing by their declining price tags. As a result, analysts see VeraSun and its peers continuing to expand.
The South Dakota company's acquisition of three facilities in Nebraska, Ohio, and Indiana sets a new, lower pricing bar of about $2.20 per gallon of production capacity.
Coming on the heels of U.S. Bioenergy Corp.'s (USBE) recent purchase of Millennium Ethanol, VeraSun's acquisition is likely to establish a market price for ethanol production capacity between $2 and $3 a gallon, down from $4 to $5 seen previously, said John Parker, a Chicago-based consultantwith Katzenbach Partners LLC.
Publicly traded ethanol companies generally have been cautious about mergers, opting instead to grow through building new capacity.
Acquisitions may enable players who have announced plans to reach 1 billion or more gallons of production annually to reach such lofty goals, said Robert Lane, a Houston-based analyst with Sanders Morris Harris.

Lower Prices Attract

Meanwhile, ethanol facility price tags have dropped. Pacific Ethanol Inc. (PEIX) paid about $3.60 per gallon of production capacity for an interest in Front Range Energy LLC in late 2006. Last month, US BioEnergy (USBE) paid $2.37 per gallon of production capacity for Millennium Ethanol LLC.
"We're seeing the price continue to come in much closer to replacement cost," said Ian Horowitz of New York-based equities research firm Soleil Securities Group Inc. The price VeraSun agreed to pay for ASAlliances is about 40 cents per gallon of annual processing capacity above the cost of building new capacity.
Ethanol's availability at a significant premium to gasoline has been partially responsible for a sense that these assets are less valuable in the short term, lowering their value. However, VeraSun said it expects ethanol prices to settle just 25 cents above the rack price of gasoline, in the longer term.
As ethanol plant values fall, more publicly traded companies are expected to acquire small, privately held ethanol producers. Publicly traded companies that have access to capital and hold a small share of U.S. ethanol production capacity are seeing acquisitions as more cost-effective than building from scratch, analysts say.
"We definitely anticipate more deal-flow," said Pavel Molchanov, a Houston-based analyst with Raymond James. "These companies are increasingly turning toward acquisitions as a way to accelerate growth, now that buy- versus-build economics are closer to parity," said Ron Oster, a St. Louis-based analyst with A.G. Edwards & Co.
For the foreseeable future, analysts predict that publicly traded companies will continue to acquire smaller privately held firms, rather than other publicly traded companies.

Bargain Prices, More Profit

More than 50 private companies are active in the ethanol sector, and could be acquisition targets, Molchanov said. As financing in the sector becomes more limited, private firms are are finding it difficult to completing new projects. The shortfall may result in bargain prices for acquirers, as well as unfinished projects, which would reduce the expected supply of ethanol, making the product more profitable for those who stay in the business.
"There are a lot of assets that are right at the goal line and having difficulties getting funding," said Soleil's Horowitz. The pressure is increased because many companies were founded by leaders from other industries who got into ethanol "not really understanding what it was," he said.
However, unlike VeraSun's newly acquired assets, many of these plants are smaller ventures that are less attractive to the larger players.
"There's probably in the range of less than a dozen of these opportunities out there," said VeraSun Chief Executive Endres.
The ASAlliances plants each have about 110 million gallons of processing capacity a year and are built by industry leaders using known technology. They also have access to low-cost corn and to markets in the West and Mid-Atlantic.
Iowa, known as a corn-producing state, is becoming a net corn importer, to fill the needs of its rapidly expanding corn-based ethanol production. That a major corn-producing state would no longer have sufficient stores of the feedstock to meet ethanol demand suggests that few locations continue to have access to inexpensive, abundant corn, Lane of Sanders Morris Harris noted.
After President George Bush suggested that the U.S. was addicted to oil and needed to turn to alternatives, a land-grab in which most optimal Midwestern locations were bought. Developers in the region enjoy access to low-cost corn, natural gas, and water supplies, and generally experience little trouble getting permits, said A.G. Edwards' Oster.
"I don't think you'll see companies go out of their comfort zone," he said. Midwestern corn-based ethanol companies will continue to scout sites known for their low-cost corn and other benefits.
As a result, more consolidation is expected, with VeraSun and its peers seen squeezing out smaller competitors.
"If there is more consolidation, it's better long-term for the industry than continued greenfield expansion of ethanol," said Lane.

(Jessica Resnick-Ault covers ethanol and biofuels in addition to traditional crude-oil refining for Dow Jones Newswires.)
("RENEWED ENERGY" is an occasional column on ethanol and biofuels and how they're changing the traditional hydrocarbon-based energy industry.)
-By Jessica Resnick-Ault, Dow Jones Newswires; 713-547-9208; jessica.resnick-ault@dowjones.com

WashInLux

07-24-2007, 12:36 PM

Play this one smart y'all. It's got a fairly sizeable short interest. Good luck.

BadThad

07-24-2007, 12:59 PM

Great article missionman....thanks!

BadThad

07-24-2007, 01:08 PM

Play this one smart y'all. It's got a fairly sizeable short interest. Good luck.

Indeed, I've been in and out a couple of times already. It's pretty crazy with up and down, but nicely playable. :D

BadThad

07-24-2007, 03:22 PM

Stupid bear market....arrrrgggg.....hit my trigger so I made a whopping $10 profit after commish. LOL Oh yea, there's no such thing as a bad profit, but there is such a thing as a crappy profit. LOL

So much for this thing running right now....let the waiting begin because I'm definately looking for the buy point again.

BadThad

07-25-2007, 12:51 PM

OK, back in....screw the Bear! LOL $14.48 is pretty low...man, I've been flipping this stock like CRAZY! Just hope I can make more than $10 this time! lmao

Ciao

07-26-2007, 01:12 AM

BadThad

07-26-2007, 09:49 AM

for info
VeraSun Energy Corporation to Release Second-Quarter Results and Host Webcast Thursday, August 2, 2007
http://app.quotemedia.com/quotetools/popups/story.jsp

what are the feelings... positive?
so we can add few more.. :p :)

I just don't know, I'm fairly new to this stock...but I will take a WAG (Wild Ass Guess): Bottom line will disappoint investors. They have been spending a lot of money increasing capacity and in acquisitions. VSE won't really produce any impressive financial data until late 2008 at the earliest. We need a LOT more E85 pumps in this country. As the use of E85 ramps up, VSE is going to be raking in massive $$$, but it's going to take time.

BadThad

07-26-2007, 12:52 PM

DAMN! Hit my stop loss trigger....arrrrgggggg....now I need to find the bottom so I can get back in.....let this bear end damnit!

BadThad

07-26-2007, 02:30 PM

Prob a good idea to wait until Aug 2 on this stock. Who knows what the results will be afterward....this thing is almost as volitile as FRPT.

BadThad

07-30-2007, 12:58 PM

Two more days.....watch this thing closely! Seems to be inching up a bit today.

missionsman1

07-30-2007, 11:46 PM

Is there a way to find out what expected earnings are?

BadThad

07-31-2007, 01:15 PM

Is there a way to find out what expected earnings are?

0.14 expected EPS. I doubt they can hit it, I'm not very confident with all the spending and debt they have. I'm thinking something like 0.09 or less....just my WAG.

The thing with VSE, they have an extremely bright future. With all the added capacity, acqusitions and gov mandating of E85. I'm not in this position currently, but I plan to get back after this earnings release. To be truthful, I hope the earnings are bad and the stock tanks big time....I'm actually praying for that. LOL That will be THE TIME to buy VSE. ;)

Don't forget......financial info out AUG 2...that's this THURSDAY. This could be a huge opportunity for all of us. :D

BadThad

07-31-2007, 01:19 PM

Took a chance...I just put in a buy at $12.50 in case it's REALLY bad Thursday. hehehehehehe This bear market may just work to help us here. :)

missionsman1

08-02-2007, 10:12 AM

Conference call now.
http://webcastingplayer.corporate-ir.net/player/playerHOST.aspx?c=197813&EventId=1605013&StreamId=944061&IndexId=&TIK={cc4326a1-938f-44d4-bbd3-585051503d06}&RGS=3

http://library.corporate-ir.net/library/19/197/197813/items/256604/VSEQ22007.pdf

missionsman1

08-02-2007, 11:19 AM

Conference call is now over. Here is some info posted.

Financial results in Q2 2007
–Diluted earnings per share (EPS) of $0.19 share
–Net income of $15.1MM, or 8.9 percent of revenues
–Revenues of $169.6MM, up $16.0MM compared to Q2 2006
–Cash on hand was $663.9MM, including $249.5MM of designated cash
–EBITDA of $33.0MM, or 19.5 percent of revenues
–Ethanol shipped increased to 63.4MM gallons, or 11 percent over
the 2006 period
•Solid operational performance
–Exceptional safety record
–Zero federal reportable spills or releases
–Production was 81.5MM gallons, a 43.6 percent increase
over Q2 2006
–June production was 105.0% of nameplate capacity

Second Quarter Strategic Highlights
•Plan to acquire three ethanol plants (330MMGY)
from ASAlliances Biofuels, LLC
•Completed ethanol marketing transition
•High level of production from Charles City
•Construction progressing at Welcome, MN; Hartley,
IA; and Reynolds, IN
•Opened VE85™stations in Washington, D.C.
•Developed Enterprise Rental Car partnership
to expand VE85™

BadThad

08-02-2007, 12:58 PM

Wow, looked better than I thought it would....I'm happy. Thanks for the info missionsman! :)

missionsman1

08-02-2007, 04:15 PM

Here is a more detailed look. I think this company will be probably the biggest Ethanol company in the future. I'm in this one with 425 shares so far.

Strong Financial and Operational Performance

Financial Highlights

- Diluted earnings per share (EPS) of $0.19

- Net income of $15.1 million, or 8.9 percent of revenues

- Revenues of $169.6 million, a 10.4 percent increase over the second
quarter of 2006

- Cash on hand of $663.9 million, including $249.5 million of designated
cash for future purchases of property and equipment

- EBITDA of $33.0 million, or 19.5 percent of revenues ($0.52 per gallon
sold)

- Ethanol sold totaled 63.4 million gallons, an 11.0 percent increase
over second quarter 2006

- Production of 81.5 million gallons, a 43.6 percent increase over the
second quarter of 2006

BROOKINGS, S.D., Aug. 2 /PRNewswire-FirstCall/ -- VeraSun Energy Corporation , one of the nation's largest ethanol producers, today announced its financial results for the three months ended June 30, 2007. Earnings were $15.1 million or $0.19 per diluted share. EBITDA was $33.0 million or 19.5 percent of revenues.

"VeraSun had a strong second quarter relative to first quarter of 2007, but down from the exceptional margin period of 2006," said Donald L. Endres, Chairman, Chief Executive Officer and President of VeraSun. "During the past quarter we started up our Charles City, Iowa facility, transitioned ethanol marketing in-house, and continued to operate our biorefineries above nameplate capacity. Ethanol prices remained steady for the quarter and corn prices began to moderate as we had expected.

"In our first quarter of managing the ethanol sales and distribution, we achieved solid performance and consistently shipped unit trains from all facilities with on-time deliveries and favorable railcar turn times," said Endres. "Our unit train strategy and customer service focus are being well received by our customers and these are points of positive differentiation for VeraSun."

The Company also announced plans last week to acquire three ethanol plants with a combined expected annual production capacity of 330 million gallons per year (MMGY) from ASAlliances Biofuels, LLC. The acquisition, which provides scale as well as geographic and operational diversity, is expected to close in 30-45 days and is subject to usual closing conditions. After the acquisition, VeraSun expects to have an annual production capacity of approximately one billion gallons by the end of 2008.

"We continue to focus on being an efficient, low-cost ethanol producer, while executing on our long-term strategy for growth," said Endres. "The ASAlliances transaction is a unique opportunity to acquire immediate production and revenue at a cost similar to that of building and gives us sister facilities that fit well into our current fleet and operations model."

Earlier this month, VeraSun worked in collaboration with General Motors to bring the first E85 fueling location to our nation's Capital and announced a strategic initiative with Enterprise Rent-A-Car to expand the use of E85.

Second Quarter 2007 Financial Highlights

Total revenues, which include revenue from the sale of ethanol, distillers grains and VE85(TM), increased by $16.0 million, or 10.4 percent, to $169.6 million for the three months ended June 30, 2007 from $153.5 million for the three months ended June 30, 2006. The increase in total revenues was primarily the result of an 11.0 percent increase in ethanol volume sold, partially offset by a decrease in average ethanol prices of $0.18 per gallon, or 7.6 percent, compared to the three months ended June 30, 2006. Ethanol production increased by 24.7 million gallons, or 43.6 percent, as a result of the added capacity from bringing the Charles City, Iowa facility on-line in April 2007.

Cost of goods sold grew by $46.5 million to $137.1 million in the second quarter of 2007 from $90.6 million in the second quarter of 2006. This was primarily due to higher corn costs and an increase of 6.3 million gallons of ethanol sold.

-- Corn costs represented 59.6 percent of our cost of goods sold before
taking into account our co-product sales and 43.2 percent of our cost
of goods sold after taking into account co-product sales for the three
months ended June 30, 2007. The comparable percentages were 47.7
percent and 32.1 percent, respectively, for the second quarter of 2006.

-- Corn costs were $3.62 per bushel, up from $2.17 per bushel in the
second quarter of 2006. Our 2007 corn costs included mark-to-market
gains of $5.4 million for derivatives relating to future deliveries of
corn. We had recorded a mark-to-market loss of $2.7 million in the 2006
period, resulting in an $8.1 million decrease in corn costs between the
periods as a result of these mark-to-market adjustments.

-- Natural gas costs increased by $0.9 million to $14.4 million and
accounted for 10.5 percent of cost of goods sold.

-- Transportation expense increased by $0.2 million to $14.1 million and
accounted for 10.3 percent of cost of goods sold.

Selling, general and administrative expenses decreased $14.0 million to $8.4 million for the three months ended June 30, 2007 from $22.4 million for the three months ended June 30, 2006. The decrease was primarily the result of $16.3 million of stock compensation expense in the 2006 period relating to our initial public offering, which was partially offset by increased management and administrative costs in the 2007 period to support our growth and public company status.

Net income was $15.1 million for the second quarter of 2007, compared to net income of $19.5 million for the same period in 2006.

EBITDA was $33.0 million or 19.5 percent of revenues for the second quarter of 2007, compared to $45.2 million for the second quarter of 2006.

About VeraSun Energy Corporation

VeraSun Energy Corporation , headquartered in Brookings, South Dakota, is committed to be a leading producer of renewable fuel. The Company has three operating ethanol production facilities located in Aurora, SD, Fort Dodge, IA, and Charles City, IA, with three facilities under construction in Hartley, IA, Welcome, MN and Reynolds, IN. VeraSun is in the process of acquiring another three biorefineries currently under construction in Albion, NE, Bloomingburg, OH and Linden, IN. Upon completion of the new facilities and those being acquired, VeraSun will have an annual production capacity of approximately one billion gallons by the end of 2008. The Company also has plans to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production.

The Company markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(TM). VE85(TM), the first-ever branded E85, is now available at more than 90 retail locations. For more information, please visit VeraSun's Web sites at http://www.verasun.com or http://www.VE85.com.

Certain statements in this release, and other written or oral statements made by or on behalf of us, are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, anticipations, beliefs, plans, targets, estimates, or projections and similar expressions relating to the future, are forward-looking statements within the meaning of these laws. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward- looking statements are not guarantees of our future performance and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by any forward-looking statements. We disclaim any duty to update any forward-looking statements. Some of the factors that may cause actual results, developments and business decisions to differ materially from those contemplated by any forward-looking statements include the volatility and uncertainty of corn, natural gas, ethanol and unleaded gasoline prices; our ability to develop an oil extraction business; the completion of our pending acquisition; the results of our hedging transactions and other risk mitigation strategies; operational disruptions at our facilities; our ability to implement our expansion strategy as planned or at all; our ability to locate and integrate potential future acquisitions; development of infrastructure related to the sale and distribution of ethanol; our limited operating history; excess production capacity in our industry; our ability to compete effectively in our industry; our ability to implement a marketing and sales network for our ethanol; changes in or elimination of governmental laws, tariffs, trade or other controls or enforcement practices; environmental, health and safety laws, regulations and liabilities; our reliance on key management personnel; future technological advances; limitations and restrictions contained in the instruments and agreements governing our indebtedness; our ability to raise additional capital and secure additional financing; and costs of construction and equipment, as more fully described in the "Risk Factors" section of our quarterly report on Form 10-Q for the three months ended June 30, 2007.

VERASUN ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended June 30,
2007 2006
(unaudited)
(dollars in thousands)
Total revenues $169,556 100.0% $153,552 100.0%
Cost of goods sold 137,071 80.8 90,616 59.0
Gross profit 32,485 19.2 62,936 41.0
Selling, general and
administrative
expenses 8,397 5.0 22,412 14.6
Operating income 24,088 14.2 40,524 26.4
Other income (expense), net (787) (0.5) (11,445) (7.5)
Income before income taxes 23,301 13.7 29,079 18.9
Income tax expense 8,165 4.8 9,526 6.2
Net income $15,136 8.9% $19,553 12.7%

Basic shares outstanding 76,998,341 64,828,596
Diluted shares outstanding 80,918,850 68,484,396

Basic EPS $0.20 $0.30
Fully diluted EPS 0.19 0.29

Six Months Ended June 30,
2007 2006
(unaudited)
(dollars in thousands)

Total revenues $314,066 100.0% $264,408 100.0%
Cost of goods sold 272,337 86.7 172,126 65.1
Gross profit 41,729 13.3 92,282 34.9
Selling, general and
administrative
expenses 19,931 6.3 26,182 9.9
Operating income 21,798 7.0 66,100 25.0
Other income (expense), net 1,008 0.3 (26,071) (9.9)
Income before income taxes 22,806 7.3 40,029 15.1
Income tax expense 7,982 2.5 17,741 6.7
Net income $14,824 4.8% $22,288 8.4%

Basic shares outstanding 76,357,188 63,627,172
Diluted shares outstanding 80,697,289 67,028,128

Basic EPS $0.19 $0.35
Fully diluted EPS 0.18 0.33

The following table sets forth other key data for the periods presented (in thousands, except per unit data):

Three Months Ended June 30, Six Months ended June 30,
2007 2006 2007 2006

Operating Data:
Ethanol sold
(gallons) (1) 63,368 57,104 123,579 111,585
Average gross price
of ethanol sold
(dollars per gallon) $2.21 2.39 $2.15 $2.09
Average corn cost
per bushel 3.62 2.17 3.77 2.02
Average natural gas
cost per MMBTU 7.59 7.75 7.85 8.69
Average dry distillers
grains gross price
per ton 96 83 93 84

Other financial data:
EBITDA(2) $33,027 $45,227 $36,817 $74,837
Net cash flows
provided by
operating activities 4,357 37,996 24,122 55,397

(1) Excludes internal gallons produced and used in VE85(TM) sales.
(2) EBITDA is defined as earnings before interest expense, income tax
expense, depreciation and amortization. Amortization of debt issuance
costs and debt discount are included in interest expense.

Reconciliation of EBITDA to Net Income

Management believes that EBITDA is useful in evaluating its operating performance in relation to other companies in its industry because the calculation of EBITDA generally eliminates the effects of financings and income taxes which items may vary for different companies for reasons unrelated to overall operating performance. EBITDA is not a measure of financial performance under generally accepted accounting principles in the U.S., or GAAP, and should not be considered an alternative to net income (loss), or any other measure of performance under GAAP, or to cash flows from operating investing or financing activities as an indicator of cash flows or as a measure of liquidity. EBITDA has its limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of the company's results as reported under GAAP. Some of the limitations of EBITDA are:

-- EBITDA does not reflect the company's cash used for capital
expenditures;
-- Although depreciation and amortization are non-cash charges, the assets
being depreciated or amortized often will have to be replaced and
EBITDA does not reflect the cash requirements for replacements;
-- EBITDA does not reflect changes in, or cash requirements for, the
company's working capital requirements;
-- EBITDA does not reflect the cash necessary to make payments of interest
or principal on the company's indebtedness; and
-- EBITDA includes non-recurring payments to the company which are
reflected in other income.

Because of these limitations, EBITDA should not be considered as a measure of discretionary cash available to the company to service its debt or to invest in the growth of its business. Management compensates for these limitations by relying on the company's GAAP results as well as on its EBITDA.

The following table reconciles the company's EBITDA to net income (loss) for the periods presented (dollars in thousands):

Three Months Ended June 30, Six Months Ended June 30,
2007 2006 2007 2006

Net income $15,136 $19,553 $14,824 $22,288
Depreciation 3,547 2,382 6,080 4,746
Interest expense 6,179 13,766 7,931 30,062
Income tax expense 8,165 9,526 7,982 17,741
EBITDA $33,027 $45,227 $36,817 $74,837

VERASUN ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,
2007 2006
Cash Flows from Operating Activities
Net income $14,824 $22,288
Adjustments to reconcile net income to
net cash provided by operating activities:
Excess tax benefits from share-based payment
arrangements (6,865) -
Change in derivative financial instruments 6,756 (3,331)
Depreciation 6,080 4,746
Deferred income taxes 5,425 10,485
Stock-based compensation expense 2,679 19,709
Amortization of debt issuance costs and debt
discount 730 649
Accretion of deferred revenue (48) (47)
(Gain) loss on disposal of equipment (83) 10
Change in fair value of convertible put warrant - 19,670
Changes in current assets and liabilities:
(Increase) decrease in:
Receivables 18,697 (16,548)
Inventories (37,920) 2,392
Prepaid expenses (3,235) 1,109
Increase (decrease) in:
Accounts payable 11,059 (8,099)
Accrued expenses 6,023 2,364
Net cash provided by
operating activities 24,122 55,397

Cash Flows from Investing Activities
Investment in designated cash and
cash equivalents (249,516) -
Purchases of property and equipment (129,551) (6,117)
Payment of deposits (202) -
Proceeds from sale of equipment 6 838
Net cash used in
investing activities (379,263) (5,279)

Cash Flows from Financing Activities
Proceeds from long-term debt 447,750 -
Debt issuance costs paid (11,375) (1,044)
Proceeds from the issuance of 2,530,793 and
12,731,446 shares of common stock,
respectively 8,285 234,155
Excess tax benefits from share-based payment
arrangements 6,865 -
Costs of raising capital (5) -
Net cash provided by
financing activities 451,520 233,111
Net increase in cash and
cash equivalents 96,379 283,229

Cash and Cash Equivalents
Beginning 318,049 29,714
Ending $414,428 $312,943

missionsman1

08-02-2007, 04:21 PM

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US Ethanol Production Tops 500 Million Gallons in May
1 August 2007

Monthly production of ethanol in the US. Click to enlarge.
Monthly production of ethanol in the US topped 500 million gallons in May 2007, according to figures from the Renewable Fuels Association (RFA). The 528 million gallons in May 2007 (about 406,000 bpd) represented a 38% increase over May 2006.

Demand for ethanol climbed to 556 million gallons (427,000 bpd) in May 2007, an increase of 22% over May 2006.

According to the RFA, as of 30 July 2007 there were 124 ethanol plants in operation in the US, with a combined production capacity of approximately 6.484 billion gallons per year—which works out to an average production capacity of 423,000 barrels per day. The ethanol industry, in other words, basically operated at close to capacity in May 2007.

Another 82 plants are currently under construction or are expanding, however, with a combined new and expansion capacity of an additional 6.3 billion gallons per year. The vast majority of existing and planned new and expansion plants are corn ethanol facilities.

BadThad

08-02-2007, 06:06 PM

Thanks again missionman! :)

missionsman1

08-03-2007, 12:52 AM

Your welcome BadThad!

Currently i'm in this, VRNM and GSCT.

Ciao

08-03-2007, 01:58 AM

Gee missionsman... will take me a week to read + understand all that … :(
good info btw
I printed it, and instead of watching the “birds” I will look into it (at least my “wife” this time wont complain) :D

Wow, looked better than I thought it would....I'm happy. Thanks for the info missionsman!
BT for the time been I take for good your comment ;)

I opened a position on wed 1st at 14.30 hoping of a good result and going over the $15.... my most disappointment yesterday it was a poor volume :o

an UK biofuel/ethanol company(BFC) got delisted yesterday (no more credit from banks) + an Italian (SN) straggling to survive as well
I wanders if it had something to do with it.... just a thought.. but could create nervousness for the big boys.... IMO
must admit that VSE is much solid and advanced

BadThad

08-03-2007, 08:21 AM

I'm not in this position, I've bought and sold 3 times now though....keep hitting my triggers...but I'm in the green. LOL I can't buy crap right now, all my money is tied up and my portfolio is beat up with long oil stocks. It's waiting time for me, just hope I can get some VSE before it get's too high...I feel it's a bargin right now.

Ciao

08-03-2007, 04:49 PM

this morning closed my position at 14.66 +36c
didn't like the turn it took :(

see my post here
http://www.stockmarketcats.com/showthread.php?p=7330&posted=1#post7330

have a nice w/e

BadThad

08-03-2007, 08:01 PM

If it wasn't a bear market, I still think this stock would move. We need to keep a close eye on it on the rebound.

BadThad

08-06-2007, 10:02 AM

RSI down, oversold....today's price touching $13.00, I'm looking to buy at about $12.50. Should see a nice bounce to $14-15 with market recovery. Keep an eye out for a buy point soon people!

Ciao

08-06-2007, 11:08 AM

RSI down, oversold....today's price touching $13.00, I'm looking to buy at about $12.50. Should see a nice bounce to $14-15 with market recovery. Keep an eye out for a buy point soon people!

Hi badthad
IMO I wouldn't go in just yet.... in this "turbulence" market the AT etc.... can't take into full consideration, until the market settle.
but then again I could be wrong..... ;)

good luck

BadThad

08-06-2007, 11:39 AM

Oh well....I had a trigger at $12.50 I forgot about. LMAO It hit my trigger and now it's trading at $12.77. SWEET....I think I'll dump it for a quick $$$.

BadThad

08-06-2007, 11:44 AM

Made $10 after commish. LOL

BadThad

08-06-2007, 11:48 AM

I think I'll set some more triggers, that was easy, if not accidental, money. LMAO

BadThad

08-06-2007, 03:34 PM

Crap....VSE on very strong EOD finish...up to $13.30 already. I suck at trading, could have made a couple hundred today if I wasn't so paranoid.

seagull339

08-06-2007, 05:07 PM

I've been watching VSE for quite some time. It will be my #1 choice to day trade when I have funds available to do so. It is a NYSE stock with good liquidity and makes some nice moves 50-100 points on a good day. Institutional buying and selling can momo it nicely when they kick in. Would not day trade every day as set ups will not occur day. I would only be able to trade a max of 3X a week anyway because of day trading rule.

lovemoney

08-06-2007, 06:17 PM

I've been sitting in it since I bought in at $14.04 two weeks or so ago. Wish I'd had a crysytal ball too to get in this morning if I'd known it would bounce back like that. Anyway with that big ol hammer on high volume, it might start back up. I'm ready to make some kind of green on this stuff. Last couple weeks has been depressing even though I know things will go back up.

BadThad

08-07-2007, 02:47 PM

Man, did I ever screw up, I should have held my 250 shares I got at $12.50 via trigger. I really HATE myself, this stock is an extreme bargin at that price IMO.

missionsman1

08-08-2007, 12:34 PM

E85 is our future imo. I am excited where this company is going and what they are developing.

VeraSun Energy to Promote VE85 Friday in Sioux Falls
August 8, 2007

VeraSun Energy Corporation, one of the nation’s largest ethanol producers, will hold a VE85™ summer pump tour promotion, Friday, August 10, at the Get N Go fueling location on South Louise Avenue in Sioux Falls. VeraSun will sell its branded VE85™, a blend of 85 percent ethanol and 15 percent gasoline, for $1.85 per gallon beginning at 11 a.m. CDT. The station is located at 2401 South Louise Avenue.

The promotion, which is in conjunction with the AgriTalk Biofuels Tour, will last for 185 minutes, encouraging FlexFuel Vehicle owners to fill-up with VE85™ and learn more about the benefits of using ethanol as a mainstream fuel source. AgriTalk is a syndicated radio program heard on more than 65 stations in 15 states. Mike Adams, host of AgriTalk, will broadcast live at the station from 10-11 a.m. CDT.

In addition to the $1.85 per gallon price for VE85™, the Get N Go station will provide customers filling their FlexFuel Vehicles with at least eight gallons of VE85™ a free car wash. Representatives from the South Dakota Corn Growers will be on site to talk with consumers about ethanol, in addition to selling raffle tickets for a chance to win a 2008 Chevy Silverado FlexFuel vehicle as part of their “Flyin’ and Fuelin” promotion.

With approximately 20,000 FlexFuel Vehicle owners and more than 60 E85 fueling locations in the state of South Dakota, more drivers are beginning to understand the benefits of using renewable fuels. E85 has the highest oxygen content of any fuel available today, therefore burning much cleaner than gasoline. The Argonne National Laboratory reported that the use of 4.9 billion gallons of ethanol in the United States during 2006 resulted in the reduction of greenhouse gas emissions by approximately eight million tons, while the use of E85 alone contributes to a 20 percent reduction in ozone-forming pollution and a 30 percent reduction in greenhouse gas emissions.Launched in May 2005, VE85™ has expanded its availability from seven stations in Sioux Falls, S.D., to more than 90 retail locations in nine states and Washington, D.C. In February 2006, VeraSun and General Motors announced a partnership that included the roll-out of 20 Chicago-area VE85™ fueling stations in conjunction with the Chicago Auto Show and GM’s launch of its “Live Green, Go Yellow” campaign. VeraSun also partnered with Ford Motor Company in June 2006 to open the industry’s first “ethanol corridor” by adding 14 VE85™ stations along Interstate 55 from Chicago to St. Louis.

VeraSun is committed to developing markets for renewable fuels and helping consumers realize a future that includes renewable energy. Consumers interested in learning more about VE85™, and where to find other VE85™ stations, can visit www.VE85.com

About VeraSun Energy Corporation
VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, South Dakota, is committed to be a leading producer of renewable fuel. The Company has three operating ethanol production facilities located in Aurora, SD, Fort Dodge, IA, and Charles City, IA, with three facilities under construction in Hartley, IA, Welcome, MN and Reynolds, IN. VeraSun is in the process of acquiring another three biorefineries currently under construction in Albion, NE, Bloomingburg, OH and Linden, IN. Upon completion of the new facilities and those being acquired, VeraSun will have an annual production capacity of approximately one billion gallons by the end of 2008. The Company also has plans to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production.

The Company markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85TM. VE85TM, the first-ever branded E85, is now available at more than 90 retail locations. For more information, please visit VeraSun’s Web sites at http://www.verasun.com or http://www.VE85.com.

BadThad

08-08-2007, 01:02 PM

Me too...I'm waiting to get back into this stock...love the prospects.

Chart is shaping up for a PPS rise IMO.

scmfinance

08-08-2007, 02:37 PM

Me too...I'm waiting to get back into this stock...love the prospects.

Chart is shaping up for a PPS rise IMO.

i don't see it yet...lower lows and lower highs...but it's gotta hit bottom at some point, right?

BadThad

08-08-2007, 04:05 PM

i don't see it yet...lower lows and lower highs...but it's gotta hit bottom at some point, right?

MACD convergence/crossing, tightening bol bands, RSI ~50 and moving up....I think the bottom is here already.

missionsman1

08-09-2007, 12:18 PM

VeraSun Energy to Test Ford's Escape Hybrid Flexible Fuel Vehicle Technology
VeraSun Chosen to Receive One of 20 Hybrid FFVs
BROOKINGS, S.D., Aug. 9 /PRNewswire-FirstCall/ -- VeraSun Energy Corporation (NYSE: VSE), one of the nation's largest ethanol producers, today announced that as part of its continuing partnership with Ford Motor Co. (NYSE: F), the company took possession of one of the first hybrid flexible fuel vehicles, or FFVs, ever produced. VeraSun will test the new Ford Escape Hybrid FFV for a two-year period to demonstrate the benefit of converging flexible fuel and hybrid technologies. 'We applaud Ford for their leadership in the production of these first hybrid FFVs,' said Bill Honnef, VeraSun's Senior Vice President, Sales and Marketing. 'This technology represents a glimpse into the future where a consumer will have the ability to fuel a vehicle on ethanol, in the form of E85, or gasoline while it optimizes efficiency through the use of hybrid battery technology.'
The Escape Hybrid FFV will produce up to 25 percent fewer greenhouse gas emissions when running on E85 as compared to the standard Escape Hybrid running on gasoline. Ford is delivering 20 Escape Hybrid FFVs to strategic partners and fleet customers in six different states.

'As a leader in both hybrid vehicles and vehicles capable of operating on ethanol based fuels, Ford is the ideal company to bring both technologies together for the first time,' said Nancy Gioia, Ford Motor Company Director of Sustainable Mobility Technology and Hybrid Programs. 'Both the Escape Hybrid E85 and the ethanol fuel it runs on are made in America. Although we currently do not have plans to produce the Escape Hybrid E85, the research from this technology could lead to breakthroughs in more advanced technologies. We're proud that our partner VeraSun will use one of these vehicles to promote the need to expand availability of biofuels for America's drivers.'
The Escape Hybrid FFV is a 'full' hybrid, meaning it automatically switches between pure electric power, pure E85 power or a combined operation to maximize efficiency and performance. Full hybrids achieve their greatest improvement in fuel economy during stop-and-go driving when the electric motor operates alone up to 25 mph.

'The Escape Hybrid FFV is an example of the strengthening relationship between the renewable fuels industry and the automakers,' Honnef said. 'We have a growing mutual interest to further develop the domestic biofuels market.'
VeraSun launched its own branded E85, VE85(TM) in May 2005. Since then, VE85(TM) has expanded from seven stations in Sioux Falls, S.D., to more than 90 retail locations in nine states and Washington, D.C. VeraSun and Ford partnered in June 2006 to open the industry's first 'Ethanol Corridor' by adding 14 VE85(TM) stations along between Chicago and St. Louis.

Media Alert

VeraSun will showcase the Escape Hybrid at several upcoming events, including its VE85(TM) summer pump tour promotion at Get-N-Go in Sioux Falls on August 10, VeraSun Biorefinery Grand Opening in Charles City Iowa on August 17, and various plant groundbreakings and grand openings within the next year.

About VeraSun Energy Corporation

VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, South Dakota, is committed to be a leading producer of renewable fuel. The Company has three operating ethanol production facilities located in Aurora, SD, Fort Dodge, IA, and Charles City, IA, with three facilities under construction in Hartley, IA, Welcome, MN and Reynolds, IN. VeraSun is in the process of acquiring another three biorefineries currently under construction in Albion, NE, Bloomingburg, OH and Linden, IN. Upon completion of the new facilities and those being acquired, VeraSun will have an annual production capacity of approximately one billion gallons by the end of 2008. The Company also has plans to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production.

The Company markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(TM). VE85(TM), the first-ever branded E85, is now available at more than 90 retail locations. For more information, please visit VeraSun's Web sites at http://www.verasun.com or http://www.VE85.com.

SOURCE VeraSun Energy Corporation

Source: PR Newswire (August 9, 2007 - 7:30 AM EST)

News by QuoteMedia
www.quotemedia.com

BadThad

08-09-2007, 01:41 PM

Ciao

08-09-2007, 03:48 PM

Missionman, I thank you once again for getting the news posts here so fast. :)

I've been trying to buy back into VSE, but it's rising too fast. LOL I might be stuck buying at freakin market if I want it. I'm still kicking myself for selling off my $12.50 shares. I SUCK! lol

BT instead to "chase" all the threads :D:D concentrate on your w/list ... you could have got in VSE at around 14.25/30 and sell it at 15 +/- ... +70c with 1K shares could have pay your diner ;)

BadThad

08-10-2007, 10:55 AM

Thanks Ciao.

I put in a trigger and it hit it $14.45, it's showing $14.72 right now....at least I'm up, but watching it close because I'm going to sell when the green calls me. :)

missionsman1

08-13-2007, 12:58 PM

bought a few hundred shares today. Now at 13.84

BadThad

08-13-2007, 01:01 PM

Good Luck! It's in a bearish mode right now, but it should come back to $14-15 before long. :) I'm holding 160 shares ATM, but I'm down right now.

missionsman1

08-14-2007, 01:49 AM

I ran across this. Dated janurary

Vinod eyes ethanol
Saw an interview with Vinod Khosla on CNBC earlier that caught my eye.

Vinod's high on ethanol
Sitting across from Maria Bartiromo and the massive parka she's sporting at the World Economic Forum in Davos this week, the legendary venture capitalist pointed out that George W. Bush single-handedly created an instantaneous, massive market Tuesday night when he pushed for the greater use of ethanol in the next 10 years.

On the power of Bush's words, Khosla believes a $70 billion market will develop surrounding ethanol in the next decade.

"I have no doubt that 100 percent of our gasoline use can be displaced in the next 25 years," Khosla told Bartiromo, who conducted the interview with the snow-capped peaks of Switzerland in the background. "I expect to see a major disruption in the oil business."

Asked if he'd ever invest in an oil company, Khosla simply said: "No."

Asked who he would invest in, Khosla said Verasun Energy, a South Dakota ethanol distiller, was his favorite alternative fuel company.

There you have it. Check out CNBC's piece on the interview here.

http://www.cnbc.com/id/16793449

lovemoney

08-14-2007, 04:09 AM

Asked who he would invest in, Khosla said Verasun Energy, a South Dakota ethanol distiller, was his favorite alternative fuel company.

There you have it. Check out CNBC's piece on the interview here.

There you go. I'm ready to see this thing go. :)

BadThad

08-14-2007, 08:48 AM

missionsman1

08-14-2007, 09:24 AM

Hold on to yer hats ladies and gentleman! More good news!!!!!!!!! Actually this is GREAT NEWS!!!!

I have been wondering when they were going to Cellulosic, because thats where the future is, in all the stuuf we waste and dont eat.

Press Release Source: VeraSun Energy Corporation

VeraSun Energy Invests in Cellulosic Ethanol Technology CompanyTuesday August 14, 8:30 am ET
SunEthanol Developing Technology for Potential Commercialization

BROOKINGS, S.D., August 14 /PRNewswire-FirstCall/ -- VeraSun Energy Corporation (NYSE: VSE - News), one of the nation's largest ethanol producers, today announced it has made a minority investment in SunEthanol, a Massachusetts- based company working to commercialize proprietary cellulosic ethanol production technology. SunEthanol currently has a patent-pending process that consolidates multiple steps into one efficient and naturally-occurring process utilizing a variety of agricultural feed stocks to produce ethanol.

"SunEthanol has unique technology that if proven to be commercially feasible will be a positive step forward for cellulosic ethanol. " said Bill Honnef, VeraSun Senior Vice President, Sales and Marketing. "While we believe corn-based ethanol production will continue to play a key role in our industry long into the future, ethanol from cellulosic feedstocks will complement corn- based ethanol in meeting the growing global demand for renewable fuels. We continue to evaluate technologies that have the potential to efficiently convert cellulose to biofuels."

SunEthanol was recently formed by a team of entrepreneurs in Amherst, Mass. The company's patent-pending, consolidated bio-processing (CBP) technology is being tested on multiple feedstocks. Dr. Susan Leschine is a company founder and the Chief Scientist at SunEthanol. Leschine originally discovered the unique CBP technology.

"We are delighted to have one of the nation's leading producers of ethanol as an investor," said Jef Sharp, SunEthanol's CEO. "Together, we hope to help shape the nation's cellulosic ethanol future. We believe there are strong synergies between our two organizations that will enable us to accelerate the pace of commercialization of this new technology."

In addition to VeraSun's investment, SunEthanol also secured financing for the development of its technology through Battery Ventures. Battery Ventures has been investing in technology and innovation worldwide since 1983 and currently manages approximately $3 billion in committed capital.

About VeraSun Energy Corporation

VeraSun Energy Corporation (NYSE: VSE - News), headquartered in Brookings, South Dakota, is committed to be a leading producer of renewable fuel. The Company has three operating ethanol production facilities located in Aurora, SD, Fort Dodge, IA, and Charles City, IA, with three facilities under construction in Hartley, IA, Welcome, MN and Reynolds, IN. VeraSun is in the process of acquiring another three biorefineries currently under construction in Albion, NE, Bloomingburg, OH and Linden, IN. Upon completion of the new facilities and those being acquired, VeraSun will have an annual production capacity of approximately one billion gallons by the end of 2008. The Company also has plans to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production.

The Company markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(TM). VE85(TM), the first-ever branded E85, is now available at more than 90 retail locations. For more information, please visit VeraSun's Web sites at http://www.verasun.com or http://www.VE85.com.

About SunEthanol

SunEthanol, Inc., headquartered in Amherst, Massachusetts, is a biofuels technology company with a proprietary process for converting biomass to ethanol fuel. SunEthanol's process has the potential to simplify and consolidate the costliest aspects of current biomass-to-ethanol technology. SunEthanol is currently partnering with industry and R&D leaders to develop and implement this technology platform. For more information please visit SunEthanol's website at http://www.sunethanol.com/

--------------------------------------------------------------------------------
Source: VeraSun Energy Corporation

BadThad

08-14-2007, 09:48 AM

Excellent! Thanks for the news missionman! :)

missionsman1

08-14-2007, 11:13 AM

Your welcome Badthad! I picked up a little more at 13.32 today. Might go lower as i noticed the dow is close to its support which is around 13,000. This could go a little lower imo. It hit a low of 12.15 a while back. Thats almost half of the IPO price, which is a bargin for this one. This is a great on to flip.

BadThad

08-14-2007, 11:52 AM

Yea, market is bearish today, it'll drop a bit more still I think too. I still don't understand why this stock isn't closer to $30 or higher. Ethanol is the immediate future to help cut gasoline use. Hell, our own government is pumping ethanol. Why isn't anyone listening? :rolleyes:

missionsman1

08-15-2007, 12:07 AM

By Martin LaMonica
Staff Writer, CNET News.com

Published: August 14, 2007, 2:15 PM PDT
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SunEthanol wants to streamline ethanol production from plant cellulose, using bacteria to do the heavy lifting.

The company, spun off from the University of Massachusetts, on Tuesday announced that it has raised a first round of funding for an undisclosed amount and intends to raise a second round later this year. Investors are ethanol producer VeraSun Energy, Battery Ventures, Long River Ventures and AST Capital.

The investment will be used to optimize a naturally occurring microbe, which the company calls the Q Microbe, to make ethanol, a car fuel. The microbe was discovered by Susan Leschine, University of Massachusetts professor of microbiology and company adviser, in the soil of New England.

The microbe can degrade the cellulose--essentially the fiber in green plants--and convert it to sugar, which is fermented into ethanol, explained company CEO Jef Sharp.

Making ethanol from plant cellulose, called cellulosic ethanol, is considered less polluting than making ethanol from grains such as corn. But the technology to produce cellulosic ethanol has not been used on a commercial scale, and the facilities are typically a lot more expensive to build than corn ethanol plants.

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Using the Q Microbe can reduce the number of steps needed to break down plant matter into ethanol, Sharp said. Other cellulosic ethanol processes require multiple steps and use enyzmes to break down the cellulose in plants.

"It's very unusual for a microbe to have ethanol as its primary byproduct. Once we knock out some of the other things it makes, its performance will increase," Sharp said.

The Q Microbe works with a wide range of plant matter, or biomass, including grasses, wood pulp, and different forms of agricultural residue like corn husks.

The company also intends to engineer a process based on the Q Microbe. It hopes to have a demonstration plant in 2009, Sharp said.

BadThad

08-15-2007, 07:56 AM

Thanks for the news again missionman! :)

missionsman1

08-16-2007, 12:34 PM

sold 400 shares yesterday

BadThad

08-16-2007, 01:36 PM

Dang, I'm guessing you lost green. :(

Down almost 5% today, I'm hanging on. I only have 160 sh.

missionsman1

08-17-2007, 12:03 AM

ment to sell just 200 which i made just a little after comissions, but i guess i changed the order price and had 2 orders in at 200 instaed of 1 and sold an extra 200 for a little loss. I still come out ahead because it was purchased from a sell of another stock.Still have 425 shares.

BadThad

08-17-2007, 08:19 AM

I'm praying for the bull to return.....then this stock will definately surge. :)

missionsman1

08-17-2007, 04:11 PM

Look like the VP and CFO Danny Herron aquired 10,000 shares today at 12.92

BadThad

08-17-2007, 05:25 PM

Look like the VP and CFO Danny Herron aquired 10,000 shares today at 12.92

Thanks for the news. I wonder if he's planning on holding those? Always a good sign when an insider buys and holds. :)

missionsman1

08-17-2007, 11:58 PM

VeraSun Celebrates Grand Opening of New 110-MGY Ethanol Plant in Charles City, IA

Washington, DC--The Renewable Fuels Association congratulates VeraSun Energy on the grand opening celebration of its state-of-the-art ethanol biorefinery in Charles City, Iowa on Aug 17.

The facility will produce 110 million gallons of ethanol and 350,000 tons of distillers grain annually from 39 million bushels of corn.

"Perhaps nowhere else in the world is the value of ethanol more deeply understood than in Iowa," said Renewable Fuels Association President Bob Dinneen.

"Iowans, along with a steadily growing number of Americans,realize that ethanol is a key step in our nation's journey toward energy self-reliance.

"It is entirely fitting that one of the leading ethanol companies has opened a second ethanol biorefinery in the nation's leading ethanol state.

"On behalf of America's ethanol industry, I want to congratulate VeraSun, Charles City and Floyd County on becoming part of our energy future.."

Currently, 124 ethanol biorefineries have the capacity to produce nearly 6.5 billion gallons of ethanol annually.

An additional 83 construction projects are underway that will add another 6.4 billion gallons of production capacity.

For more information, call Matt Hartwig at 202-289-3835.

BadThad

08-18-2007, 03:17 PM

Cool....thanks missionman!

BadThad

08-24-2007, 01:09 PM

VSE Upgrade!

S&P Stock Picks and Pans: Lowe's, Nasdaq, Thornburg Mortgage, Countrywide, VeraSun Energy
5:15p ET August 20, 2007 (S&P)
From Standard&Poor's Equity Research. Lowe's Companies (LOW; $28.62) S&P reiterates buy recommendation Analyst: Michael Souers July-quarter EPS of $0.67 vs. $0.60 is $0.05 higher than our estimate. A same-store sales decline of 2.6% was in line with our projection of a 3.0% decline. Despite the better EPS than we expected, we see Lowe's impacted by continued weakness in the housing market throughout the rest of 2007 and well into 2008. We are maintaining our fiscal year 2008 (January) estimate of $2.01, but lower fiscal year 2009's to $2.28 from $2.32. We are also reducing our 12-month DCF-based target price by $2 to $38. However, we find Lowe's attractive, trading at about 12.5 times our fiscal year 2009 EPS estimate, a modest discount to the S&P 500.

Nasdaq Stock Market (NDAQ; $32.40) Maintains hold Analyst: J. Willey NDAQ has begun exploring strategic alternatives for its 31% stake in the London Stock Exchange, and we expect interest from multiple bidders. NDAQ plans to use the proceeds from any sale to pay down its $1 billion senior term debt and to repurchase shares. The company indicated the planned sale would increase its standalone EPS by $0.30-$0.35 in 2008. While we think the sale of LSE stake would remove a large overhang and improve the balance sheet, we remain cautious on the shares given the likely need for higher bid for OMX AB and limited diversification in NDAQ's business model.

Thornburg Mortgage (TMA; $13.70) Reiterates sell recommendation Analyst: J. Willey TMA announces the sale of $20.5 billion of its mortgage-backed securities, 36% of its total loan portfolio at the end of the second quarter. The company will recognize a loss of about $930 million on the sale, and GAAP book value has fallen to $12.40 at Aug. 17 from $19.38 at June 30. While we see the sale and reduction in short-term borrowing obligations providing near-term stability, we expect a negative impact on future earnings, and we believe TMA's dividend will need to be reduced. We believe the credit and mortgage markets remain highly volatile, and we see risk of further book value impairment.

Countrywide Financial (CFC; $22.10) Maintains sell opinion Analyst: Stuart Plesser In an effort to offset the likelihood of lower mortgage originations in the months ahead, CFC has begun laying off employees, mostly in its reduced document loan business. Although the move is prudent, in our opinion, it is coming a bit late. Separately, CFC is facing heavy withdrawals at its thrift operation. At the very least, this should hurt its net interest margin, since it will likely be forced to offer higher deposit rates to offset perceived risk. More significantly, this may impact CFC's ability to finance new loans. Our 12-month target price remains $20.

VeraSun Energy (VSE; $12.88) Upgrade to hold from sell, on valuation Analyst: S. Ham-CFA The company is going through a period of high growth, driven by expansion of ethanol production. VSE recently acquired 330 million gallons of production capacity to help it expand to 1 billion gallons of ethanol by 2009 from 230 million gallons at the end of 2006. We expect EPS to rise from $0.44 in 2007 to $1.14 in 2008. After blending our DCF and relative p-e valuations, we are keeping our 12-month target price at $14, a premium to peers p-e of 16.5 times our 12-month forward EPS estimate. With the shares down 11% in the past two months and below our target price, hold.

BadThad

08-27-2007, 01:44 PM

Looks like VSE is getting tired of the low stock price. PR out today:

VeraSun Energy Names Patty ****erson Director of Investor Relations
8:30a ET August 27, 2007 (PR NewsWire)
VeraSun Energy Corporation (NYSE: VSE), one of the nation's largest ethanol producers, today announced that Patty ****erson has been named the Company's Director of Investor Relations. In her role, ****erson will be responsible for developing and executing VeraSun's global investor relations program. She comes to VeraSun from Ignis Petroleum Group where she held the position of Vice President for External Affairs, Investor Relations and Corporate Secretary.

"We are excited to have someone with Patty's experience lead our investor relations program," said Danny Herron, VeraSun Senior Vice President and Chief Financial Officer. "Her background with publicly-traded companies and legal education will be a tremendous asset in working with all of our investors as we continue to build our national and global presence."

During her time at Ignis, ****erson was responsible for counseling senior executives on corporate and financial communications strategy and execution, served as a spokesperson to the investment community, and coordinated presentations and road shows for financial audiences.

"I am looking forward to the opportunities and challenges that are ahead for VeraSun Energy and the renewable fuels industry," ****erson said. "VeraSun has done a tremendous job in establishing itself as a leader in the industry while executing its long-term growth strategy. From an investor perspective, we will continue to enhance our communications to our shareholders, potential investors, analysts and all other key stakeholders that have a vested interest in renewable fuels."

Prior to working at Ignis, ****erson owned Energy Direct Communications, an investor relations and corporate communications company that specializes in working with clients in the energy sector. Before Energy Direct, ****erson gained investor relations experience working with Box Energy Corporation.

A native of Dallas, Texas, ****erson earned her law degree from the Texas Tech School of Law and her bachelor's degree in government affairs from Texas Woman's University.

missionsman1

08-28-2007, 09:27 AM

http://seekingalpha.com/article/45804-verasun-energy-time-to-trust-the-math

Mike Davydov

VeraSun Energy: Time to Trust the Math
posted on: August 28, 2007 | about stocks: VSE
I'm a math person but I'm also a skeptic. Though these two traits have nothing to do with each other, they are both at the forefront of my internal dilemma regarding ethanol. You see, my math side is telling me that VeraSun (VSE) is a ridiculously cheap stock, while my skeptical side is whispering a different tale. So, I decided to see who's right.

First, let's establish that, at the end of the June 2007 quarter (Q2), VeraSun had three operational plants capable of producing 340 millions of gallons of ethanol per year (MMGY), or 85 MMG per quarter. During the June quarter, the company produced a slightly smaller-than-capacity 81.5 MMG, and of that, sold 63.4 MMG, or roughly 75% of capacity. These sales yielded $169.6 million in revenue, and $15.1 million (19 cents per share) in net income (both revenue and income also include sales of distiller grains, but let's assume that this is directly proportional to the amount of ethanol sold).

During the current September quarter (Q3), VeraSun expects to start up its newly acquired Linden, Indiana facility, and produce and sell 95 MMG of ethanol (roughly 85% of the new, 112.5-MMG quarterly capacity, and 33% higher than the 63.4 MMG it sold in the June quarter).

I hope I haven't lost anyone yet, because here comes the fun part. Using this 33% growth projection, we can now estimate that the company will make $20.1 million (or 25 cents per share) on revenues of $226.5 million for Q3. Both of these forecasts are higher than the current analyst estimates of 23 cents per share on revenues of $225.5 million. Ah, but my skeptical side reminds me that ethanol and corn prices are constantly changing, and that 33% gallons-sold growth does not necessarily mean 33% earnings- and revenue-growth. Nevertheless, since these variable prices can fluctuate to benefit the company as well as to hurt it, let's assume for now that these estimates are more or less accurate. Thus, we can expect VeraSun to slightly beat analyst estimates when it reports its September-quarter numbers.

That's all and good, but a positive surprise of only a penny or two per share shouldn't be convincing enough for you to start buying up VeraSun shares. So, let's look deeper into the future, all the way into the year 2008. In the fourth quarter of next year, the company plans on starting up its ninth plant for a total ethanol capacity of one billion gallons per year, or 250 MMG per quarter. You'll notice that this new capacity will be exactly twice that of September, 2007. Thus, we can estimate Q4 2008 earnings and revenue to equal $40.2 million (50 cents per share) and $453 million, respectively. Assuming no new plants are opened in 2009, we can in turn expect full-year 2009 earnings and revenue of $160.8 million ($2 per share) and $1,812 million, respectively.

So how do we translate all this into a share price? Let's assume that VeraSun's $13 shares are currently fairly valued with a forward P/E of 12.5 (this number is based on full-year 2008 expected EPS of $1.04). Starting on January 1, 2008 (in four months), however, its forward P/E will start to be based off 2009 full-year earnings. If our 2009 estimate of $2 per share is accurate (or at least if that's what analysts will be predicting on 1/1/08), then VSE will have to trade at $25 per share to sustain its forward P/E of 12.5! This is a 92% hypothetical share-price gain in the next four months.

Moreover, the company reported that its production for the month of June 2007 was actually greater than its capacity, so it's very possible that the above estimates are somewhat conservative. Additionally, the 2009 estimate of $2 per share assumes that VeraSun will sell 85% of its 1 billion-gallon potential. If they end up selling the full billion, VSE's 2009 earnings can be estimated at $2.35 per share, and will need to jump to $29/share to sustain the current 12.5 forward P/E.

But wait a minute; my skeptical side is reminding me that VeraSun's recent acquisition of additional plants from ASAlliances will cost the company $725 million -- $200 million of which will be through the issuance of 13.8 million VSE shares. Additionally, the company will need to take on an additional $275 in debt, on which it will undoubtedly need to pay interest. The resulting dilution and expense will likely have a material affect on future EPS -- by as much as 20%. On the other hand, the forward P/E of 12.5 that we've been working with is somewhat conservative; competitor Pacific Ethanol, for instance, is trading at 20 times forward earnings, and at $15 per share, VeraSun itself was trading at 14.5 forward P/E just a few week ago. Also, this purchase from ASAlliances is not just for three plants, but for two development sites as well. So, it's very conceivable that VeraSun will build two more production facilities on these sites in the not-so-distant future, thus perhaps positively impacting 2009 sales and earnings.

Now I'm no Miss Cleo, but when you show me a company whose stock is trading at all-time lows, and whose production and sales are poised to double in 12 to 15 months, I will advise you to consider buying its shares. With VeraSun, it's time to shut out the skeptic and trust the math.

Disclosure: Author has a long position in VSE

BadThad

08-28-2007, 09:47 AM

HAHAHAHAHA....interesting calculations and look at VSE....Thanks missionman!

missionsman1

08-28-2007, 10:47 AM

and thats not all folks! How about a nice PR! This company is going to be like major BIG!

Press Releases
Kroger Becomes First National Retailer to Sell VeraSun's Branded E85
VeraSun Energy and Kroger Offer VE85(TM) at 20 Fueling Locations in Ohio and Kentucky

CINCINNATI, Aug. 28 /PRNewswire-FirstCall/ -- VeraSun Energy Corporation (NYSE: VSE), one of the nation's largest ethanol producers, and The Kroger Co. (NYSE: KR) today announced the opening of 20 VE85(TM) fueling locations at Kroger convenience stores in Ohio and Kentucky. Kroger becomes the first national retailer to offer VeraSun's branded E85, a blend of 85 percent ethanol and 15 percent gasoline for Flexible Fuel Vehicles (FFVs). With the addition of the 20 Kroger locations, VeraSun now has more than 100 retail fueling stations in 11 states and the District of Columbia selling VE85(TM).

"We are pleased to be partnering with Kroger to bring VE85(TM) to more than 20 different locations," said Bill Honnef, VeraSun Senior Vice President- Strategic Initiatives. "We recognize Kroger for their leadership in becoming the first national retailer to offer VE85(TM). This marks a significant step in E85 becoming a mainstream fuel option for FlexFuel Vehicle owners throughout our country."

Located in Cincinnati, Kroger currently operates almost 2,500 supermarkets and multi-department stores in 31 states. The company also has more than 750 convenience stores and 650 supermarket fuel centers. Currently, Kroger has 40 locations offering E85 in the states of Texas, Ohio and Kentucky.

"The opportunity to offer VE85(TM) at various Kroger locations is an important initiative in meeting our country's growing demand for renewable fuels," said Geoffrey Covert, President of Kroger's Cincinnati/Dayton division. "As the number of Flexible Fuel Vehicles continues to increase, partnering with VeraSun allows us to offer our customers convenient fueling options."

As a result of the VeraSun and Kroger partnership, Enterprise Rent-A-Car will designate four additional rental locations as VE85(TM)/FlexFuel branches, including one of its primary locations in Cincinnati on Glenway Ave. Enterprise and VeraSun announced a partnership last month whereby Enterprise committed to concentrate FFVs around select VE85(TM) fueling locations. A quarter of the rental fleet in these new locations will be GM FlexFuel Vehicles. Enterprise will provide ethanol and FFV education materials and maps to Kroger's Ohio VE85(TM) fueling locations inside each automobile.

"Consumers are becoming more interested in experiencing the benefits of fueling with higher blends of ethanol like VE85(TM)," said Honnef. "By harnessing the drive and commitment of world-class companies like Kroger, Enterprise and General Motors, we are making significant strides in expanding the availability VE85(TM) and improving consumer education."

General Motors and Enterprise Rent-A-Car joined VeraSun and Kroger to make the announcement at Kroger's Harrison Ave. location in Cincinnati on Tuesday morning. Motorists were able to purchase VE85(TM) for 85 cents per gallon from 7:30 a.m. until 9:30 a.m. The first 100 customers were given a $25 Kroger refueling card and representatives from VeraSun, Kroger, GM and Enterprise were on site for the official announcement.

E85 is a high-octane, cleaner-burning fuel, with an octane rating of 100 or greater and the highest oxygen content of any fuel available today. The Argonne National Laboratory reported that the use of 4.9 billion gallons of ethanol in the United States during 2006 resulted in the reduction of greenhouse gas emissions by approximately eight million tons, while the use of E85 alone contributes to a 20 percent reduction in ozone-forming pollution and a 30 percent reduction in greenhouse gas emissions.

VE85(TM) was launched in May 2005 with seven stations in Sioux Falls, South Dakota and is now available in Chicago, Minneapolis-St. Paul and Pittsburgh. In June, VeraSun, GM and Enterprise partnered to open the first E85 retail location in Washington, D.C.

VeraSun is committed to developing markets for renewable fuels and helping consumers realize a future that includes renewable energy. Consumers interested in learning more about VE85(TM), and where to find VE85(TM) stations, can visit http://www.VE85.com

VE85(TM) available at the following Kroger locations:

Blanchester -- 1001 Cherry Street
Cincinnati -- 8433 Winton Road
Cincinnati -- 3710 Paxton Avenue
Cincinnati -- 5830 Harrison Road
Circleville -- 175 Lancaster Pike
Columbus -- 1585 Georgesville Square Drive
Columbus -- 7000 East Broad Street
Columbus -- 3637 South High Street
Covington (Kentucky) -- 4303 Winston Avenue
Dayton -- 4506 Brandt Pike
Grove City -- 5965 Hoover Road
Hilliard -- 2525 Hilliard-Rome Road
Mansfield -- 1240 Park Avenue West
Miami Township -- 6388 Branch Hill Guinea Pike
Perrysburg -- 27386 Carronade Drive
Pickerington -- 1045 Hill Road
Springfield -- 2728 East Main Street
Toledo -- 4925 Jackman Road
Toledo -- 4633 Suder Road
Troy -- 751A West Market Street

About VeraSun Energy Corporation

VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, South Dakota, is a leading producer of renewable fuel. The Company has 450MMGY of production capacity through four operating ethanol production facilities in Aurora, SD, Fort Dodge, IA, Charles City, IA and Linden, IN. Five facilities are currently under construction in Hartley, IA, Welcome, MN, Reynolds, IN, Albion, NE and Bloomingburg, OH. Upon completion of the new facilities, VeraSun will have an annual production capacity of approximately one billion gallons by the end of 2008. The Company also has plans to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production.

The Company markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(TM). VE85(TM) is now available at more than 100 retail locations. For more information, please visit VeraSun's websites at http://www.verasun.com or http://www.VE85.com.

SOURCE VeraSun Energy Corporation

CONTACT: Melissa Ullerich of VeraSun Energy Corporation, +1-605-695-8350, mullerich@verasun.com

BadThad

08-28-2007, 12:03 PM

I forgot to mention this....I'm in Cincinnati and it was all over the radio stations. This is just the begining! :)

missionsman1

08-29-2007, 12:27 PM

More news

A director of ethanol producer VeraSun Energy Corp. bought 30,000 shares of stock, according to a Securities and Exchange Commission filing Tuesday.

In a Form 4 filed with the SEC, Steven Kirby (nyse: KEX - news - people ) reported he bought the shares for $12.38 apiece on Tuesday.

BadThad

08-29-2007, 02:24 PM

BadThad

08-30-2007, 10:24 AM

Ethanol stocks upgraded: YAY!

NEW YORK (AP) - A Lehman Brothers analyst upgraded shares of ethanol producers Aventine Renewable Energy Holdings Inc. and VeraSun Energy Corp. Thursday, saying flat corn prices, impending alternative energy legislation and a narrower spread between the cost of ethanol and gasoline could lift the shares as much as 50 percent in the next three months.

Both stocks are trading near annual lows, with VeraSun shares down 24.8 percent since July 11, and Aventine shares off 25.3 percent.

Ethanol producers have been weaker than the broader market over the last month, said analyst Mansi Singhal, who upgraded the sector to "Positive" from "Neutral," and raised his ratings on Aventine and VeraSun to "Overweight" from "Equal Weight."

He has a price target of $20 per share on Aventine stock, and $17 per share on VeraSun.

"We think the downside risk may be limited to only 10 to 15 percent, while the upside potential could be as high as 30 percent to 50 percent over the next three months," he wrote in a note to clients.

Singhal said he thinks Congress will require greater use of ethanol before the end of next year, although differences between House and Senate versions of energy bills and White House opposition could keep that from happening in 2007.

This year's large corn crop should keep prices flat or reduce them slightly, he added. While ethanol is significantly cheaper than gasoline, Singhal thinks that discount will become narrower in the months ahead.

Aventine shares closed at $13.70 Wednesday, and have traded between $13.10 to $28.83 in the last year. VeraSun shares finished at $12.24 Wednesday, and have ranged from $12.11 to $26.90.

lovemoney

08-30-2007, 06:52 PM

Looks like it might be setting up.

BadThad

08-31-2007, 01:31 PM

It really needs to press up to the 200MA, about $17.50. MACD xover forming, this stock is LONG overdue for a run not only from a TA standpoint, but from a business one as well. The future is quite bright for VSE IMO.

Ciao

09-02-2007, 02:15 AM

have you seen this info
VeraSun Energy Corporation (NYSE: VSE), one of the nation's largest ethanol producers, and The Kroger Co. (NYSE: KR) recently announced the opening of 20 VE85(TM) fueling locations at Kroger convenience stores in Ohio and Kentucky. Kroger becomes the first national retailer to offer VeraSun's branded E85, a blend of 85 percent ethanol and 15 percent gasoline for Flexible Fuel Vehicles (FFVs). With the addition of the 20 Kroger locations, VeraSun now has more than 100 retail fueling stations in 11 states and the District of Columbia selling VE85(TM).

on thursday I got some VSE.... hoping to gain on the €$ as well at least not loosing ;)

BadThad

09-02-2007, 07:24 PM

Yea Ciao, that was posted a page or 2 back. Where you been? ;)

missionsman1

09-04-2007, 11:44 PM

VeraSun: Fuel for the Future?
By Jack Uldrich September 4, 2007
0
Recommendations
As an investor, I'm not fond of ethanol. I've got several good reasons, including its marginal environmental benefits, the high price of corn, and the ever-present possibility that it might lose its political support -- and generous subsidies -- on Capitol Hill.

I haven't invested in small to mid-sized ethanol plays such as Aventine Renewable Energy (NYSE: AVR), US BioEnergy (Nasdaq: USBE), or Pacific Ethanol (Nasdaq: PEIX) because I think the industry will eventually go through serious consolidation, leaving only a few significant producers.

To this end, I think it's a safe bet that Archer Daniel Midlands (NYSE: ADM), the world's largest ethanol producer, and perhaps Poet (formerly Broin Energy), the world's second-largest producer, will be among the survivors. And recent actions by VeraSun (NYSE: VSE) have convinced me that it, too, will survive.

For starters, the company is doing an excellent job of forging relationships with key customers. Recall that last year, the company partnered with General Motors (NYSE: GM) to promote its ethanol, and in July, it announced a similar deal with Enterprise Rent-A-Car. Last week, it added to this list by announcing that Kroger (NYSE: KR) -- one of the country's larger grocery chains -- will begin selling VeraSun's VE85 fuel at 20 of its locations.

The deal might seem small, but it offers substantial upside for VeraSun, because Kroger operates 652 supermarket fuel centers. The trick for VeraSun will be to convince Kroger to increase the number of stores that make VE85 available to customers.

As significant as the Kroger development is, VeraSun recently unveiled two other initiatives that are even more significant. First, on Aug. 20, the company closed its deal with ASAlliances Biofuels to acquire three 110-million-gallon ethanol facilities for $725 million. This new capacity, paired with existing capacity and capacity in the planning stages, will allow VeraSun to produce up to 1 billion gallons by the end of 2008. This is the kind of large-scale production that could allow the company to achieve the economies of scale needed to more effectively control its margins.

The second initiative announced last month was the news that VeraSun was investing an undisclosed sum in SunEthanol, a private Massachusetts-based company seeking "to commercialize proprietary cellulosic ethanol technology."

The economic viability of cellulosic technology is still unproven, but I like the move because it suggests that VeraSun takes seriously the possibility that cellulosic ethanol adoption may be feasible. If cellulosic ethanol does pan out, VeraSun intends to be able to make the transition away from corn-produced ethanol.

That said, these initiatives -- the deal with Kroger, the expanded capacity, and the investment in cellulosic technology -- still aren't enough to convince me that an investment in VeraSun is prudent. Now, though, I am at least confident that the company will be around in a few years -- which is more than I can say for some other, smaller ethanol companies.

For related Foolishness:

VeraSun Rents a Small Opportunity
Cobs Clobber VeraSun's Profits
What will they think of next? A free trial to Rule Breakers gives you a chance to chat with other investors and our analysts about the technologies that will change our lives and help our portfolios.

Fool contributor Jack Uldrich does not own stock in any of the companies mentioned in this article. The Motley Fool has a disclosure policy.

missionsman1

09-04-2007, 11:48 PM

Hey guys, another great article on Verasun. Remember theyhave a stake in Sun Ethanol.

Ethanol makers pursuing avenue 'Q'
A new microbe being used by biofuel leaders has the chance to change the way ethanol is produced.
By Jeff Cox, CNNMoney.com contributing writer
September 4 2007: 12:36 PM EDT

NEW YORK (CNNMoney.com) -- Figuring out a way to turn wood pulp, sugar cane, wheat straw and other biomass products into ethanol is the easy part. Figuring out a way to do it economically and efficiently is where it gets tricky.

Biofuel labs across the country have been busy experimenting with various enzymes that can extract sugar from feedstocks which then can be converted into ethanol. But many of the processes are labor and power intensive because of the need to create special enzymes, leaving American producers to continue to rely on corn until cheaper cellulosic methods are perfected.

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One of the more recent entrants into the ethanol enzyme race, though, could be one of the most interesting, particularly in terms of the attention it's attracted.

The enigmatically named Q Microbe, under development by SunEthanol Inc., has attracted the attention of major ethanol producer VeraSun Energy, putting it at the forefront of technology for co-called cellulosic ethanol, which is expected to replace corn as the main source of alternative fuel in the United States. The enzyme's allure lies in how it is found in nature and does not need to go through the costly process of being manufactured in a lab to be effective, as well as its efficiency with a variety of biomass products.

Big ethanol shakeout coming?
Enzymes are introduced to cellulosic products like woodchips and switchgrass to extract sugar, which is then fermented to produce ethanol. Enzymatic hydrolysis is considered to be the most cost-effective way to make the biofuel, and the Q Microbe is expected to be cheaper to use than other enzymes because it can do its work naturally in one step, whereas other enzymes need multiple steps in a laboratory to extract the sugar.

Moreover, the Q Microbe so far has been effective with almost all biomass, while other enzymes only work on particular substances.

University of Massachusetts biology professor Susan Leschine discovered the microbe in the soil of New England and she is working with technicians at SunEthanol to incorporate its use in the production process. Those involved expect a test plant to open by 2009 with commercial production coming once the facility has shown it is viable.

VeraSun (Charts) is one company on a very short list of ethanol producers that generate more than 100 million gallons a year in the $23 billion ethanol industry. Its decision to help finance the development of Q Microbe represents a lurch forward away from exclusively corn-based ethanol.

"VeraSun's strategy is to invest in promising technologies that can be added onto our existing facilities," said company CEO Don Endres. "We're excited about this. There's a lot of work that needs to be done. The technology needs to be proven, the process needs to be worked out, but we think it represents good potential."

Financing for patent-pending Q Microbe technology has been provided by VeraSun, along with private equity interests Battery Ventures, Long River Ventures and AST Capital. The companies will make the technology available on the open market once it is perfected.

Battle over ethanol benefits
SunEthanol CEO Jef Sharp said Q "has the potential to change the game."

"We're taking what is promising technology and turning it into commercially viable technology," he said.

Sharp did not disclose how much money it will take to develop the Q Microbe, and a company spokesman would only say that the commitment from VeraSun and the other companies is somewhere in the "multi-million dollar range."

Neither company is ready to say this early specifically how much of a cost savings might be reached when the process is perfected, but analysts say the Q enzyme process could result in a 20 percent discount to corn ethanol, which now runs about $2.20 a gallon.

"We're working hard to develop it to make sure that we can deliver on the promise of the microbe as we see it right now," Sharp said.

VeraSun is among the first of the larger ethanol companies to stake out a position in cellulosic ethanol. The nation's ethanol manufacturers now produce only the corn-based product, with cellulosic commercial sales expected to be at least 18 months away. Large corn-based ethanol manufacturers include Archer Daniels Midland (Charts, Fortune 500) and Poet Ethanol, with BioFuel Energy Corp. (Charts) expected to join that list once its production facility comes online next March.

Todd Neeley, who has researched the Q Microbe for agriculture analysts DTN in Omaha, Neb., said the move could be significant both for VeraSun and SunEthanol as well as the rest of the industry.

"The very fact that Vera Sun is going to put its name and money out there is very significant," he said. "Maybe it's the break that the cellulosic industry has been looking for."

Congress stalks ethanol corn

BadThad

09-05-2007, 09:05 AM

Great article! Thanks again missionman, I really appreciate your article posts.

missionsman1

09-05-2007, 11:40 PM

Ciao

09-06-2007, 02:31 AM

Your welcome BadThad! I really like this Company. When this stock ran last november, i could have got options at .40 a share and sold at the end of the month for a high of around 6.00. You can make some good green in options, but you sure gotta know what your doing.

although at the mo I only trade in/out this in one of my favorites as well, I will hold them when the market will settle
MMdo you or anyone know a good options or cw links? thanks

missionsman1

09-06-2007, 10:10 AM

Ciao, What is a cw link? I use to use Opions Xpress but now just use them for looking up old highs and lows for options. At Zecco you can trade options for 2.95 or 3.95 + .60 a contract. I would like to learn more from someone that does options as a living though and is good at it.

although at the mo I only trade in/out this in one of my favorites as well, I will hold them when the market will settle
MMdo you or anyone know a good options or cw links? thanks

missionsman1

09-07-2007, 12:17 AM

more news

http://www.forbes.com/feeds/ap/2007/09/06/ap4091002.html

missionsman1

09-17-2007, 12:16 AM

looks like vse broke the 12.15 low an hit the 11.90's fri.

BadThad

09-17-2007, 09:37 AM

looks like vse broke the 12.15 low an hit the 11.90's fri.

Yea, it's crazy, stupid low. Hope the Fed cuts the int rate Tuesday and spurs some growth in the market!

missionsman1

09-17-2007, 09:58 AM

All time low now 11.10

Trading at 11.25 now

BadThad

09-18-2007, 10:27 AM

I hope E85 is selling well. That will open up some investors wallets. This is the biggest single thing we can do to reduce our dependency on foreign oil.

missionsman1

09-18-2007, 12:41 PM

VSE seems to have capitualed yesterday, meaning those that wanted out got out and left the buyers driving the price UP before the close. The candlestick is very BULLISH. With futures up this morning, maybe it can pull VSE UP in the next couple of days.

BadThad

09-18-2007, 12:57 PM

MACD xover, RSI crossing 50.....go baby go! :D

BadThad

09-19-2007, 04:12 PM

Not too bad today, up 2.4% for the day....closed above $12 finally. Still wondering why this stock isn't at least $17. I guess it doesn't help having all the "SELL" recommendations floating around. Fools I say! :p

BadThad

09-20-2007, 11:09 AM

Boring PR out today:

VeraSun Energy Names Mark ****ey Vice President and Assistant General Counsel
8:30a ET September 20, 2007 (PR NewsWire)
VeraSun Energy Corporation (NYSE: VSE), one of the nation's largest ethanol producers, today announced that Mark ****ey has joined the company as Vice President and Assistant General Counsel. All together, ****ey brings more than 20 years of legal experience, including 14 years in private practice.

"We are pleased to have Mark join the VeraSun team," said John Schweitzer, Senior Vice President and General Counsel for VeraSun. "His experience and expertise fit well with our strategy for growth."

Prior to joining VeraSun, ****ey served as Vice President, Assistant General Counsel and Assistant Secretary at Gateway, Inc., where he was responsible for handling all legal affairs for the corporate, finance and operations functions. Prior to Gateway, he worked at Hartzog Conger & Cason where he specialized in mergers and acquisitions, public offerings, and private placements of equity and debt securities, tax planning, financing and commercial transactions, licensing and joint ventures.

"VeraSun has become a leader in the renewable fuels industry in a very short period of time," said ****ey. "I look forward to working with the management team to continue this leadership and deliver value to its shareholders, employees, customers, suppliers and communities."

****ey earned his law degree from the University of Oklahoma, his Masters of Business Administration from Wake Forest University, and his bachelor's degree in Finance from Oklahoma State University.

Ciao

09-26-2007, 07:33 AM

hello
just for info
Ethanol stocks hit new lows
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-19817939.htm

how come it keep going down??
some of the Europeans company as VSE are doing the same ... down :(
IMO the Gov. need to have a more positive view on this product...

BadThad

09-26-2007, 08:21 AM

hello
just for info

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-19817939.htm

how come it keep going down??
some of the Europeans company as VSE are doing the same ... down :(
IMO the Gov. need to have a more positive view on this product...

Yea, it's plain crazy at this point. I don't care what anyone says, ethanol is going to be much, much bigger than most people imagine. We are in the very early stages of using ethanol seriously as a fuel.

missionsman1

09-27-2007, 12:22 PM

I truly believe it will turn around and one of these months or years it will go over its past high . I believe E85 has the greatest chance of being our future! There will probably be around 4 other sources of alt energy, but E85, and bio fuels will play a big part.

BadThad

09-27-2007, 12:58 PM

Indeed missionman:

US Bioenergy CEO eyes fuel demand, even as corn prices rise
4:19p ET September 26, 2007 (MarketWatch)
NEW YORK (MarketWatch) -- US BioEnergy CEO Gordon Ommen said Wednesday the ethanol business continues to grow as a blend ingredient for retail gasoline, despite falling stock prices in the sector and rising corn costs.

"We're making more ethanol this year and all of it getting used," Ommen said in an interview with MarketWatch.

Ommen's comments came as US Bioenergy and other ethanol stocks such as VeraSun , Aventine Renewable and Pacific Ethanol all dropped to 52-week lows this week.

Wall Street's cold shoulder has come because of lofty corn prices and a "temporary retraction" of ethanol prices, but Ommen maintained that the long-term prospects for his business remain healthy.

Analysts have been rough on the sector, with Ian Horwitz of Soleil Securities assigning a sell rating on the stock on Sept. 17. He cited falling ethanol prices and rising corn prices as putting a squeeze on the business.

"We also have cash concerns in 2008 if the current margin environment extends into next summer," he said in the research note.

Ommen said the company remains on sound footing as it meets demand. At a wholesale cost of about $1.50 a gallon, he argues ethanol remains a cost-effective additive for gasoline, which has risen to $2.81 a gallon from $2.37 a gallon in the past year.

Existing U.S. cars and trucks could burn up to 10% of ethanol blended with gas, up from about 5% now, with no alterations in engine design.

While Ommen didn't oppose the ethanol tariff in the upcoming Farm Bill now before Congress, he said the business would survive even without a tax on competing ethanol from Brazil or elsewhere.

"If Brazil sends us their fuel, they'll have to buy more expensive fuel to replace it," he said.

With a current market cap of $556 million, US Bioenergy is trading at about four times its $136 million cash and less than one times its annual revenue run rate of about $600 million, based on its June 30 financial filings.

US Bioenergy swung to a gain of $8.3 million in the second quarter, up from a loss of $1.7 million in the year-ago period. Revenue climbed sharply to $154.4 million from $21 million in the year-ago period.

Ommen reached beyond the ethanol sector to boost his company's case, citing the petroleum industry's study, "Facing The Hard Truth," which lists biofuels as a component of the worlds' future energy mix.

He also cited the book, "A Thousand Barrels a Second" which lays out the view that current increases in energy consumption could prove unsustainable in coming years.

Ommen's comment come amid a tide of criticism on the ethanol, attacked on issues ranging from the diversion of corn from food supplies, receiving government subsidies, and consuming too much energy to make and transport.

Ommen said he continues to expect more consolidation in the ethanol business, after US Bioenergy closed on its acquisition of US Bio Marion, LLC, formerly Millennium Ethanol, last month.

missionsman1

09-27-2007, 04:55 PM

http://uk.reuters.com/article/oilRpt/idUKL2612781720070926

missionsman1

09-28-2007, 10:47 AM

http://www.businessweek.com/magazine/content/07_40/b4052052.htm?chan=top+news_top+news+index_business week+exclusives

BadThad

09-28-2007, 11:13 AM

http://www.businessweek.com/magazine/content/07_40/b4052052.htm?chan=top+news_top+news+index_business week+exclusives

That's an interesting article, thanks missionman!

missionsman1

10-01-2007, 10:40 AM

News
Ethanol plant in Linden bought by VeraSun Energy
By Jay Heater
Posted: Sunday, September 30, 2007 11:01 PM EDT
Email this story | Print this story
Don Endres lives in South Dakota, but here in Montgomery County, he is going to be a very important neighbor.

Endres is the Chairman and CEO of VeraSun Energy Corporation, which bought the ethanol plant in Linden from ASAlliances Biofuels LLC in August.

It should be an interesting relationship as ethanol production in the United States continues to soar and VeraSun, which is headquartered in Brookings, S.D., continues to grow. Although the long-term future of ethanol as an important, renewable energy source continues to be debated, there is no disputing the fact that ethanol sales have skyrocketed and will continue to do so at least in the short term.
It appears likely that VeraSun’s fortunes will continue to skyrocket as well. VeraSun had revenues of $10.9 million in 2003 and $235.4 in 2005.

That growth could affect Montgomery County residents in a number of ways.

The plant currently employs 65 people and as demand for ethanol rises, it could mean even more jobs.
“At all of our facilities, we have the ability to expand,” Endres said. “We purchase real estate with built-in expansion in mind.”

If the plant prospers, local farmers should benefit from VeraSun’s increasing demand for corn. The plant has been built to process 39 million bushels of corn a year (110 million gallons of ethanol) and expansion could send that figure even higher.

Some local farmers have noted they still are trucking their corn to other buyers because VeraSun isn’t paying a top price. However, Endres said local farmers will reap the benefits later when the demand for corn increases.
“We are going to be grinding 100,000 bushels of corn every day,” Endres said. “Right now, the market is busy. Producers will find that it’s going to benefit them because we grind corn throughout the year.”

Creating jobs and pumping dollars into the local economy are positives of expansion, but some residents might worry there could be negatives, such as pollution or unbearable truck traffic. “I would tell people to look at our facility, to come take a visit,” Endres said. “They would see that we are a clean operating facility. We have installed the latest in technology. We will have very limited emissions.

“We also work closely with communities to make sure we are not impacting them from a traffic perspective. I would hope people will keep an open mind about us.”
Now that VeraSun has operated the facility about a month and has its staff in place, Endres said he is planning a trip to Montgomery County to host an open house at the plant. He knows local residents will have lots of questions.

There have been concerns that while ethanol provides farmers with a new market, it might drive up food costs.

“There are a number of stories out there that are just not fact based,” Endres said. “In a box of corn flakes, the price of the corn in that box is less than five cents. Ethanol production will have much more impact on (lowering) transportation costs than (raising) food costs.”
Of course, misinformation is part of the problem. Since ethanol’s role in our society has increased sharply in a short period of time, people really don’t understand it. Endres said education is important, especially in the areas where VeraSun is operating a plant.

“Clearly we will spend time in (Montgomery County), educating them about who we are,” he said. “We want to show how we are going to be a good neighbor. Our broader strategy is to educate our consumers. There is a lot of work that needs to go on.”

VeraSun Energy Corporation was founded in 2001 and quickly has become one of the largest ethanol producers in the world. It will have nine production plants fully operation by next year, including a plant in Reynolds.
Endres said the Linden plant fit right into his company’s master plan. “One, we look for a great community,” he said. “That’s very important to our business because the people from the community become part of our company. Two, we needed to have plentiful corn in the area. And three, logistics. We need to ship by rail, which we have there.

“But it all starts with the community.”

Coming from a fourth generation Midwest farm family, Endres believes in strong community involvement. In South Dakota, he has received numerous awards for his work with the Boys and Girls Club, Holt Adoption Foundation, United Way, Habitat for Humanity and the Catholic Foundation. “We do support some local causes,” he said. “We have a track record of doing that. We believe that it’s very important that our people are members of the community. We have a responsibility.”
He also hopes local farmers understand that he is sympathetic to their problems. “My values were gained through my family farm background,” he said. “If we work with our suppliers and the community, we are going to find ways of doing business that will benefit all of us. That’s the proper path. We are a public company (VSE on the New York Stock Exchange) so local people can own a piece of our company. Our focus is to create a great relationship with our communities. If we treat people right, they will do the same to us.”

(Jay Heater can be reached at jheater@jrpress.com)

BadThad

10-02-2007, 10:14 AM

All this good news and VSE PPS just keeps slipping. I can't figure out investors sometimes, this stock should be soaring! :confused:

BadThad

10-02-2007, 04:20 PM

Damnit!:mad:

VeraSun scraps plan for new ethanol plant
9:26a ET October 2, 2007 (MarketWatch)
NEW YORK (MarketWatch) -- VeraSun's decision to suspend construction of its plant in Reynolds, In., "could signal the beginning of a number of similar announcements," UBS said in a note to clients on Tuesday. "The resulting reduction in supply additions could help alleviate the weak pricing environment that looked likely to persist well into 2009 if no legislative help materializes," analyst Chris L. Shaw said in a note to clients on Tuesday. Ethanol prices have dropped more than 50 cents a gallon in two months, while corn is close to $4 again, he said. "We estimate that the typical plant is unprofitable in today's market, thus the decision by VersaSun to stop construction until returns improve," UBS said.

BadThad

10-02-2007, 04:22 PM

All this good news and VSE PPS just keeps slipping. I can't figure out investors sometimes, this stock should be soaring! :confused:

They are smarter than I am! LOL I didn't realize ethanol prices have been slipping so much.....I feel so dumb! :rolleyes: This is going to get even uglier at this pace, I'm bailing and cutting my loss.

missionsman1

10-03-2007, 12:25 AM

Guru Picks
Gurus Dig Deep For Energy
Joshua Lipton, 10.02.07, 3:15 PM ET

In Pictures:
10 Guru Buys & Sells

With the close of the third quarter on Sept. 28, oil weighed heavily on the minds of investors, as threats of storms in the Gulf of Mexico sent prices higher even as U.S. government data showcased a rise in crude oil inventories for the first time in five weeks. Rising oil prices can spell bad news for stocks because of increased costs for companies and consumers.

Follow the "smart money" into this regional airline serving mostly the Western U.S. Click here for details in Marketocracy Marketscope.
At the same time, however, those climbing prices can benefit energy share prices, a theme that was reflected last week in the investing patterns of the best-performing investors who maintain portfolios on Marketocracy.com.

The M100 decided that the energy sector was a smart place to park cash. Specifically, these investors sought out those companies working in the oil and gas industry. One fan favorite: Canadian oil and gas company Talisman Energy (nyse: TLM - news - people ), in which the gurus significantly increased their positions.

In Pictures: 10 Guru Buys & Sells
Special Offer: This Chinese electronic-component maker is under heavy accumulation by the best investors at Marketocracy, while the worst investors have been sellers. Click here for details on this and other strong buys in Marketocracy Marketscope and in Ken Kam's Best Ideas portfolio.
On Sept. 12, Talisman Energy told Wall Street that it began production from its Blaine field in Europe. Located 160 miles offshore of Aberdeen, Scotland, the site is predicted to produce a peak rate of 17,000 barrels of oil a day. The company didn't report how Blaine's production would impact financial results. Talisman holds a majority stake in the field.

More broadly, interest has been high for exploration and production stocks. With significant quantities of low-cost reserves already found, and prospects for additional finds tied up, so goes the bullish argument, these companies inevitably will be acquired by bigger producers whose customer demands exceed their yearly reserve findings. Talisman Energy is one of those companies to watch. (See: " Stay Long On Energy.")

Another area of heavy buying within the energy sector for the M100: ethanol.

On Sept. 17, Goldman Sachs (nyse: GS - news - people ) analyst Arjun Murti cut ethanol share-price forecasts and slashed targets for a number of firms, telling clients supply and demand issues argue for lower prices.

"Long-anticipated ethanol oversupply has arrived and will continue to put downward pressure on ethanol crush spreads--hence corn-based ethanol equities over the remainder of 2007 and likely through much of 2008," Murti wrote.

A number of analysts have downgraded the sector in the past two weeks citing similar worries, but the M100 decided that all that tough talk meant it was a good time to buy on the dip. The investors aggressively increased their positions in both U.S. Bioenergy (nyse: USBE - news - people ) and VeraSun Energy (nyse: VSE - news - people ).

Special Offer: Invest like the legends--Graham, Buffett, Lynch, Zweig and others. The Validea Hot List takes the best current picks based on the strategies of the world's best investors of all time. The portfolio has returned 171.4% over the past 3.5 years, vs. 36.3% for the S&P 500. Click here for the complete list of current buys.
The decision of the M100 to stake out claims in energy last week follows a period of serious selling. A year ago, the M100's energy holdings made up 19.67% of their combined portfolios. After months of selling, that number bottomed out at 13.5% in May, when gurus began to buy back into the sector (See: " Gurus Fill The Tank With Energy Stocks.") Now the energy holdings of the M100 are approaching 15.24% of their overall portfolios.

The M100 also decided that last week was a good time to take profits, unloading all of their shares in a couple of former favorites. One firm they no longer fancied was Force Protection Industries (nasdaq: FRPT - news - people ), which makes armored vehicles.

On Sept. 26, defense stocks cruised to new highs as Defense Secretary Robert Gates requested an extra $42 billion in funding from Congress to cover military costs in Iraq and Afghanistan in 2008. The AMEX Defense Index, which tracks 14 major defense company stocks, rose 14.25 to a high of 1,686.72 in afternoon trading that day. Year-to-date, the index has risen 38.8%.

The stock of Force Protection has vaulted 24.4% year-to-date. Gurus decided now was the time to cash out.

Another company that the M100 decided to bail on last week was Del Monte Foods (nyse: DLM - news - people ).

The gurus aren't the only stock-watchers now a bit more skeptical about the food producers. Last week, an analyst at Bear Stearns told clients that he decided to slash his rating on the food producing sector, arguing that some stocks are overpriced, while food production costs are increasing.

Analyst Terry Bivens downgraded the food group sector to "market weight" from "market overweight."

In Pictures: 10 Guru Buys & Sells

Guru Buys:

Talisman Energy
U.S. Bioenergy
VeraSun Energy
Solarfun Power Holdings
Smart Modular Technologies

Guru Sells:

Huron Consulting Group
Force Protection
Del Monte Foods
Paccar
Celgene

Marketocracy.com tracks more than 60,000 online stock portfolios. Of those, the top 100 performing portfolios, the M100, are used to create a real-life mutual fund, the Masters 100 Fund, which is managed by founder Ken Kam. Each week, Guru Picks analyzes the buys and sells of the M100. To read Ken Kam's Best Ideas Blog, click here .

Send comments and questions to newsletters@forbes.com.

The Associated Press contributed to this report.

missionsman1

10-03-2007, 11:06 AM

Broke the 10.00 yesterday and today again. Hit 9.82 yesterday. Hit 9.86 today so far. High volumn already today.

missionsman1

10-03-2007, 11:08 AM

Just broke the 9.82 and hit 9.75 but bounce back up quickly.

BadThad

10-03-2007, 12:03 PM

I bailed....the stress is just too much and the negative press is driving me crazy. I'm going to sit back and watch at this point.

missionsman1

10-07-2007, 05:00 PM

Is Archer-Daniels-Midland Co. Going Shopping?
posted on: October 07, 2007 | about stocks: ADM / VSE / PEIX
For a while I have been saying that the ethanol industry is due for consolidation and it seems that the largest producer of it in the US, Archer Daniels Midland (ADM) agrees.

ADM's Chief Financial Officer Doug Schmalz said Tuesday the corn and soy bean processing giant would consider buying ethanol plants now that lower prices for the fuel have been preassuring production margins. "In general, we'll look at all opportunitites including acquisitons," Schmalz said at the Citi Biofuels Conference.

"We have to have properties that will fit within our network. Some plants just wouldn't fit; others might. We'll analyze that as they become available."

This is where it gets really fun. We get to speculate as to what may happen. ADM will not be picking up the mom and pop ethanol collaboratives that have sprung up in recent years. When you will be producing 1.5 billion gallons of ethanol by the end of next year, picking up a 20 million gallon a year plant is a waste of your time.

That being said, when companies like Verasun (VSE) and Pacific Ethanol (PEIX) are both trading a 52 week lows, the timing to pick one of them up is perfect. Verasun would give ADM another 500 mgpy of production and access to an E85 infrastructure and partnerships with auto makers. Pacific Ethanol would give ADM another 300 mgpy and instant access to the potentially largest ethanol market in the US, California.

Pacific Ethanol has a market cap of $350 million and Verasun's is $810 million so either would easily be digestible for the $21 billion ADM.

There has been way too much coming from ADM recently about expansion plans via partnerships or purchases for something not to be either in the works already or about to be. ADM, as I have said before is probably the quietest company out there. For them to actually be talking means something, most likely something very big is about to happen.

Investors have watched the stock drift for most of 2007 and I have repeatedly said to be patient and hold on (I am holding on to my shares with you). Continue to do so and by this time next year, we'll be laughing at those who did not.

Disclosure: Author is long ADM.

BadThad

10-08-2007, 08:43 AM

HOLY CRAP! That's sure to drive VSE PPS upward....figures....I bail and now this. ARRRGGGGG

BadThad

10-08-2007, 10:43 PM

Man oh man....tell me this chart isn't telling a story now:

http://stockcharts.com/h-sc/ui?s=VSE&p=DAILY&b=5&g=0&id=p80054858499

Easy pointers, MACD xover the RSI crossing 50 for starters....look at those candles.

missionsman1

10-17-2007, 09:50 AM

VSE had a nice gap today over 12.00 No news that i can find. Wonder if Ethanol will take off soon because of oil prices?

BadThad

10-17-2007, 11:30 AM

VSE seems totally driven by corn speculation. I got tired of waiting so I sold out. Hard to keep a stock that's just not moving like I expected when I could be making money elsewhere. For now, the ethanol stocks are just on my watch list as I know their day will come. I am anxious to hear the sales figures on E85!

missionsman1

10-17-2007, 02:24 PM

up close to the 50 ma again. Just bounces back down when it hits or gets close.

missionsman1

10-18-2007, 11:36 PM

In Microbe, Vast Power For Biofuel
Organism's Ability To Turn Plant Fibers To Ethanol Captures Investors' Attention

By Steven Mufson
Washington Post Staff Writer
Thursday, October 18, 2007; Page D01

QUABBIN RESERVOIR, Mass. Ten years ago, an assistant from a microbiology laboratory took a hike near the shore of the vast Quabbin Reservoir, which supplies water to Boston. At one point, he crouched alongside a brook in the shade of towering hemlock trees, dug up some moist dirt, put it in a jar and took it back to the lab.

Today, some investors are betting that the jar of dirt could help change the biofuels industry.

Buy This Photo

Thomas Warnick, a University of Massachusetts lab technician, near the spot in the Quabbin Reservoir where he filled a jar with dirt that turned out to have a cellulose-chomping, ethanol-producing microbe. (By Steven Mufson -- The Washington Post)

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Inside the jar, microbiology professor Susan B. Leschine found curious lollipop-shaped microbes with an uncommon ability to break down leaves and plant fibers into ethanol. For 30 years, Leschine has been researching this sort of thing and writing about it for publications such as the International Journal of Systematic and Evolutionary Microbiology.

Some venture capitalists in the area have convinced Leschine that her tiny microbe could be very big business. Now Leschine, who teaches at the University of Massachusetts at Amherst, is also chief scientist at SunEthanol, a start-up firm with about a dozen employees.

The firm has attracted an equity investment from VeraSun Energy, one of the nation's biggest producers of ethanol derived from corn and used as motor fuel. It is VeraSun's first investment in the next generation of ethanol, known as cellulosic ethanol, made from switch grass, wood chips and other plant fibers. Now SunEthanol is racing to gear up for commercial production of the microbe so it can move from the cloudy test tubes in Leschine's cluttered lab into the giant vats at VeraSun's refineries.

SunEthanol is just one of countless firms searching for ways to make cellulosic ethanol a commercially viable business. At the moment, they have a way to go. Unlike ethanol made from corn, not a drop of cellulosic ethanol is being commercially produced. Half a dozen pilot projects are being built -- with the help of $385 million in Energy Department grants -- but no one claims to have a sure thing.

"We're optimistic, but we're also realistic that this is an early-stage company and it still has many hurdles to cross," said Bill Honnef, VeraSun's vice president for strategic initiatives. "We will look at the program over the next year and figure out how we're doing. At that point, we will decide whether to make further investments."

Congress is working to prime the cellulosic ethanol pump. The Senate version of the energy bill being considered would require the oil industry to use 21 billion gallons annually of "advanced biofuels," including cellulosic ethanol, by 2022. A tax break would allow companies to deduct half the cost of a new plant in the first year of operation. And cellulosic ethanol would draw generous subsidies for oil refiners who mix it into their gasoline.

Still, many technological hurdles remain, and much of the venture capital poured into the cellulosic ethanol industry is going into companies like SunEthanol that are searching for ways to make the manufacturing process more efficient and profitable.

A key part of the challenge is figuring out how to better break down cellulosic material -- such as cornstalks or wood chips -- into ethanol. Many firms are trying to do that in two steps, first breaking down cellulose into sugars and then fermenting sugars to produce ethanol for use in motor fuel.

Many companies are genetically engineering enzymes to do the first task. Those enzymes tend to be expensive. On Monday, Genencor, a division of Danisco, announced that it had developed a new product, Accellerase 1000, that it said contains a combination of enzymes that reduces cellulosic biomass into fermentable sugars.

"Lots and lots and lots of groups and companies are looking for new cellulases," or enzymes that process cellulose, said J. Craig Venter, who raced the federal government in mapping the human genome. Venter's company, Rockville-based Synthetic Genomics, is searching for naturally occurring chemicals that can turn sugar into diesel fuel. "A key part of nature is breaking down plant debris," he said. "So we find all kinds of environments with unique cellulases in them."

CONTINUED 1 2 Next >

Related
The Promise and Problems of Ethanol
Graphic | Corn is currently the main source of ethanol in the United States despite its disadvantages. Cellulosic ethanol, which can be produced from forestry and crop waste products, is still too expensive to manufacture, but promises a greater energy return. A look at both types of ethanol:
More on washingtonpost.com

missionsman1

10-18-2007, 11:39 PM

Leschine says her microbe has the advantage of performing both the breakdown of plant fibers and the production of ethanol. "Creating one microbe that does what enzymes and fermentation do is regarded as the Holy Grail because of the savings in costs," she said.

For the microbe, the plant fibers are food while ethanol and carbon dioxide are waste products. "These are tiny little cells we can't even see. They don't have mouths. How do they do it?" she said with a sense of wonder.

Buy This Photo

Thomas Warnick, a University of Massachusetts lab technician, near the spot in the Quabbin Reservoir where he filled a jar with dirt that turned out to have a cellulose-chomping, ethanol-producing microbe. (By Steven Mufson -- The Washington Post)

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Whether SunEthanol will succeed remains unclear, but it is a good example of the hopes and hurdles for companies in the cellulosic biofuel business. Many of those firms rely on the research, and serendipity, of scientists like Leschine.

For years, Leschine scoured soil samples from around the world in search of the perfect microbe, one that would excel at breaking down what nature casts on the ground in damp places like the reservoir. When friends or colleagues traveled, she would ask them to bring back soil in jars or old plastic film canisters.

Yet the best microbe may have been here all along, lurking near some ferns and an old stone dam just 20 minutes from her university lab. She has dubbed it the Q microbe for the Quabbin Reservoir.

Apart from its lollipop appearance, it didn't stand out at first. But the more she tested it, the more unusual it seemed. Most microbes have about 20 machine-like proteins for absorbing sugars; the Q microbe has more than 100 for various nutrients, half of them for sugars, she says. The Q microbe also works in moderate temperatures, making it useful for manufacturing.

Leschine's interest predates the current fervor over biofuels. Since her graduate school days, she has been interested in the role of microbes in the carbon cycle. On the shelves of her office sit beanbags in the shapes of microbes. In a corner stands a bag of dirty cornstalks.

"The last thing in the world I wanted to do was start a company," Leschine said as she stood next door to her lab, where an assistant heated mixtures in test tubes. "It seemed like more of a distraction."

Then she talked to someone teaching business at the university, and he and a group of venture capitalists persuaded her to commercialize it. She came to feel that it was her obligation because she had received Energy Department research grants.

Next came lengthy negotiations with the university, which owned the intellectual property rights for work done in its labs. SunEthanol negotiated an exclusive licensing agreement with the university, which owns the patent.

The Q microbe's future hinges on the SunEthanol founders' skill at navigating talks like this to raise more money and persuade ethanol makers to use the Q microbe instead of a competing bug or enzyme. A small business is like Leschine's test tube samples, and scaling it up is no science. SunEthanol's chief executive Jef Sharp knows that from experience. He started a successful clothing firm. Later, he started X-S Capacity, which he called a sort of eBay for excess manufacturing capacity. It flopped. More recently, he launched Tech Cavalry, which provides computer support for individuals and businesses. This time, he says, "the wind is at our backs."

SunEthanol has received help from the Energy Department in mapping the genetic code of the Q microbe. The firm also hopes to receive an Energy Department grant through a program to help small businesses. "It could be lifeblood for us," said Jonathan Gorham, SunEthanol's marketing director.

SunEthanol's founders fear that the regulations are written in a way that will restrict federal funding to enzyme development, not microbe development. They have lobbied the Energy Department and members of Congress to make sure their work will be considered.

Next SunEthanol must figure out how to go from working with a liter or two of Q microbes in the lab to churning out millions of gallons of the microbe. VeraSun, for example, has fermentation vats that are more than 100,000 gallons each. SunEthanol must also test temperature and acidity conditions for the Q microbe, which will be expected to break down plant material very different from what it consumes near Quabbin's shore.

VeraSun's Honnef hopes that cellulosic ethanol plants can be built next door to the company's corn ethanol distilleries. Those distilleries use kernels and leave the rest, known as corn stover. The corn stover is largely waste material now but shows cellulosic possibilities.

"The conversion of cellulosic material to ethanol has been proven out in a lab," Honnef said. "The challenge is that it can't be done today on a commercial basis on a large scale."

Leschine is hopeful. "What we've demonstrated is that if you go out and look in nature, you can find a microbe that does what you want to do," she said. "The advantage of working with a natural microbe is that . . . you don't have to do all the complicated genetic engineering."

But she knows that she doesn't know much about engineering or big industry. She notes the dirty cornstalks in her office. They are there, she said, "to remind me that this is a daunting task."

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The Promise and Problems of Ethanol
Graphic | Corn is currently the main source of ethanol in the United States despite its disadvantages. Cellulosic ethanol, which can be produced from forestry and crop waste products, is still too expensive to manufacture, but promises a greater energy return. A look at both types of ethanol:
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missionsman1

10-20-2007, 10:56 PM

VERASUN ENERGY CORP (NYSE:VSE) Uptrend
Smart Scan Chart Analysis is showing some near term weakness. However, this market remains in the confines of a longer term uptrend Uptrend with tight money management stops.

Based on a pre-defined weighted trend formula for chart analysis, VSE scored +70 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

+10 Last Hour Close Above 5 Hour Moving Average
+15 New 3 Day High on Friday
+20 Last Price Above 20 Day Moving Average
+25 New 3 Week High, Week Ending October 20th
-30 New 3 Month Low in October

+70 Total Score

missionsman1

10-24-2007, 06:47 PM

$13.00 today

missionsman1

11-01-2007, 12:07 AM

13.56 at close today or after hours trading.

BadThad

11-01-2007, 03:47 PM

OUCH! I give up on ethanol stocks for now....arrrrgggg....they hold such promise too:

New York-based Soleil Securities Group Inc., a leader in institutional investor research, downgraded ratings for three major ethanol companies in September: Aventine Renewable Energy Inc., Pacific Ethanol Inc. and VeraSun Energy Corp. According to Soleil Securities Analyst Ian Horowitz, Aventine (NYSE: AVR) was cut to "underperform," closing at $11.68 with a 52-week range of $10.61 to $26.49. Pacific Ethanol (NASDAQ: PEIX) was also cut to "underperform," closing at $11.17 with a 52-week range of $10.29 to $19.80. VeraSun (NYSE: VSE) was dropped to "market perform," closing at $12.02 with a 52-week range of $11 to $26.90. Horowitz also downgraded Aventine from "buy" to "hold," and both U.S. BioEnergy and VeraSun from "hold" to "sell."

missionsman1

11-14-2007, 09:50 AM

Ethanol clue under their feet.

http://seattletimes.nwsource.com/html/businesstechnology/2004008433_btethanolmicrobe12.html

missionsman1

11-14-2007, 10:59 PM

VeraSun Energy Corporation Reports Third Quarter 2007 Financial Results
Wednesday November 14, 6:00 pm ET

Quarter Highlighted by Increased Production and Revenues

Financial Highlights

- Revenues of $221.9 million, a 49.7% increase from the third quarter of
2006

- Net income of $7.8 million, compared with net income of $32.0 million
in the third quarter of 2006

- Diluted earnings per share (EPS) of $0.09, compared with EPS of $0.40
in the third quarter of 2006

- EBITDA of $22.4 million, or 10.1% of revenues ($0.24 per gallon sold)

- Cash on hand of $320.2 million

- Ethanol sales of 95.1 million gallons, a 71.8% increase from third
quarter 2006

- Ethanol production of 99.4 million gallons, a 77.4% increase from
third quarter 2006

BROOKINGS, S.D., Nov. 14 /PRNewswire-FirstCall/ -- VeraSun Energy Corporation (NYSE: VSE - News), one of the nation's largest ethanol producers, today announced its financial results for the three months ended September 30, 2007. Earnings were $7.8 million or $0.09 per diluted share. EBITDA was $22.4 million or 10.1% of revenues.

"VeraSun had a solid third quarter in 2007 considering the change in market conditions for ethanol," said Donald L. Endres, Chairman, Chief Executive Officer and President of VeraSun. "We were able to grow our production and revenues, while at the same time controlling our costs as we completed the ASAlliances acquisition and absorbed start-up costs for our biorefineries in Linden and Albion."

VeraSun completed its acquisition with ASAlliances Biofuels, LLC in August, taking ownership of facilities in Linden, Ind., Albion, Neb., and Bloomingburg, Ohio. The Linden facility began production in August, followed by Albion in October. Bloomingburg is expected to begin operations in the first quarter of 2008. VeraSun has two additional plants under construction in Hartley, Iowa and Welcome, Minn., in addition to a facility under development in Reynolds, Ind.

"We continue to execute on our strategy to be a large-scale, low-cost producer," said Endres. "We remain optimistic regarding demand for ethanol as discretionary blending continues to expand throughout the country. Last week the Energy Information Administration reported a record level of discretionary ethanol blending. We expect this trend to continue, led by a strong move into the Southeast U.S. as ethanol blending margins are currently exceeding $1 per gallon."

Third Quarter 2007 Financial Highlights

Total revenues, which include revenue from the sale of ethanol, distillers grains and VE85(TM), increased by $73.6 million, or 49.7%, to $221.9 million for the three months ended September 30, 2007 from $148.2 million for the three months ended September 30, 2006. The increase in total revenues was primarily the result of an 71.8% increase in ethanol volume sold, partially offset by a decrease in average ethanol prices of $0.40 per gallon, or 17.0%, compared to the three months ended September 30, 2006. Ethanol production increased by 43.4 million gallons, or 77.4%, as a result of the added capacity from bringing the Charles City, Iowa facility on-line in April 2007 and the Linden, Indiana facility on-line in August 2007.

Net sales from ethanol increased $58.0 million, or 44.4%, to $188.5 million for the three months ended September 30, 2007 from $130.5 million for the three months ended September 30, 2006. The impact of increased volume, primarily from the additional Charles City and Linden capacity, was $93.7 million, partially offset by a $35.7 million reduction due to lower prices. The average price of ethanol sold was $1.96 per gallon for the three months ended September 30, 2007 compared to $2.36 per gallon for the three months ended September 30, 2006.

The net loss from derivatives included in net sales was $0.3 million for the three months ended September 30, 2007 compared to a net gain of $0.9 million for the three months ended September 30, 2006.

Net sales from co-products increased $14.3 million, or 101.8%, to $28.4 million for the three months ended September 30, 2007 from $14.1 million for the three months ended September 30, 2006. The impact of increased volume from the additional Charles City and Linden capacity was $10.9 million and the impact of higher prices was $3.5 million.

Net sales of VE85(TM), our branded E85 product, increased $1.1 million, or 37.5%, to $3.9 million for the three months ended September 30, 2007 from $2.8 million for the three months ended September 30, 2006, primarily due to an increase in the number of retail outlets selling our product.

Gross profit decreased $36.2 million to $23.4 million for the three months ended September 30, 2007 from $59.6 million for the three months ended September 30, 2006. The decrease in gross profit was primarily due to higher corn costs, partially offset by the effect of an increase in ethanol volume produced in the 2007 period compared to the 2006 period. Also included in cost of sales for the 2007 period were a $0.6 million lower of cost or market write down of ethanol inventory and a $0.6 million impairment for a cancelled biodiesel project. Results for the full year 2007 are also expected to be adversely affected by these relatively higher corn costs.

Net income decreased $24.2 million to $7.8 million for the three months ended September 30, 2007 from $32 million for the three months ended September 30, 2006. The 2007 period included an income tax benefit of $2.4 million compared to $23.4 million of income tax expense in the 2006 period. The effective income tax rate was 19.8% in the 2007 period compared to 42.2% in the 2006 period. The effective tax rate was higher in the 2006 period due to nondeductible expenses associated with our initial public offering. The 2007 effective tax rate declined from our previous estimate of 35% to 19.8% due to a reduction in estimated income for the year caused by current market conditions and an increase in the estimated tax exempt interest income, both in dollars and as a percent of income before income taxes. The tax benefit is the result of a year to date cumulative adjustment resulting in a change in the expected annual tax rate during the quarter from 35% to 19.8%.

About VeraSun Energy Corporation

VeraSun Energy Corporation (NYSE: VSE - News), headquartered in Brookings, SD, is a leading producer of renewable fuel. The company has 560 million gallons per year (MMGY) of production capacity through five operating ethanol production facilities in Aurora, SD, Fort Dodge, IA, Charles City, IA, Linden, IN and Albion, NE. Four facilities are currently either under construction or development in Hartley, IA, Welcome, MN, Reynolds, IN, and Bloomingburg, OH. Upon completion of the new facilities, VeraSun will have an annual production capacity of approximately one billion gallons. The Company also has plans to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production.

The Company markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(TM). VeraSun now has approximately 150 VE85(TM) retail locations under contract in over a dozen states and Washington, D.C. For more information, please visit VeraSun's websites at http://www.verasun.com or http://www.VE85.com.

Certain statements in this release, and other written or oral statements made by or on behalf of us, are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, anticipations, beliefs, plans, targets, estimates, or projections and similar expressions relating to the future, are forward-looking statements within the meaning of these laws. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements are not guarantees of our future performance and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by any forward-looking statements. We disclaim any duty to update any forward-looking statements. Some of the factors that may cause actual results, developments and business decisions to differ materially from those contemplated by any forward-looking statements include the volatility and uncertainty of corn, natural gas, ethanol and unleaded gasoline prices; our ability to develop an oil extraction business; the results of our recently acquired facilities; the results of our hedging transactions and other risk mitigation strategies; operational disruptions at our facilities; our ability to implement our expansion strategy as planned or at all; our ability to locate and integrate potential future acquisitions; development of infrastructure related to the sale and distribution of ethanol; our limited operating history; excess production capacity in our industry; our ability to compete effectively in our industry; our ability to implement a marketing and sales network for our ethanol; changes in or elimination of governmental laws, tariffs, trade or other controls or enforcement practices; environmental, health and safety laws, regulations and liabilities; our reliance on key management personnel; future technological advances; limitations and restrictions contained in the instruments and agreements governing our indebtedness; our ability to raise additional capital and secure additional financing; and costs of construction and equipment, as more fully described in the "Risk Factors" section of our quarterly report on Form 10-Q for the three months ended September 30, 2007.

VERASUN ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended September 30,
2007 2006
(unaudited)
(dollars in thousands)

Total revenues $221,868 100.0% $148,249 100.0%
Cost of goods sold 198,474 89.5 88,654 59.6
Gross profit 23,394 10.5 59,595 40.4
Startup expenses 1,675 0.8 235 0.2
Selling, general and
administrative expenses 9,862 4.4 7,189 4.8
Operating income 11,857 5.3 52,171 35.4
Other income (expense), net (6,489) (2.9) 3,205 2.1
Income before income taxes 5,368 2.4 55,376 37.5
Income tax provision (benefit) (2,425) (1.1) 23,376 15.8
Net income $7,793 3.5% $32,000 21.7%

Basis shares outstanding 85,177,689 74,908,467
Diluted shares outstanding 88,157,051 79,837,314

Basic EPS $0.09 $0.43
Diluted EPS $0.09 $0.40

Nine Months Ended September 30,
2007 2006
(unaudited)
(dollars in thousands)

Total revenues $535,934 100.0% $412,657 100.0%
Cost of goods sold 470,811 87.8 260,780 63.1
Gross profit 65,123 12.2 151,877 36.9
Startup expenses 3,257 0.6 541 0.1
Selling, general and
administrative expenses 28,211 5.3 33,065 8.0
Operating income 33,655 6.3 118,271 28.8
Other income (expense), net (5,481) (1.0) (22,866) (5.6)
Income before income taxes 28,174 5.3 95,405 23.2
Income tax provision (benefit) 5,557 1.0 41,117 10.0
Net income $22,617 4.3% $54,288 13.2%

Basis shares outstanding 79,329,665 67,428,927
Diluted shares outstanding 83,472,558 71,339,291

Basic EPS $0.29 $0.81
Diluted EPS $0.27 $0.76

The following table sets forth other key data for the periods presented (in thousands, except per unit data):

Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
Operating data:
Ethanol gallons sold (1) 95,133 56,280 218,689 167,865
Average gross price of
ethanol sold (dollars per
gallon) $1.96 $2.36 $2.07 $2.18
Average corn cost per bushel 3.32 2.05 3.58 2.03
Average natural gas cost per
MMBTU 6.17 7.70 6.59 8.35
Average dry distillers grains
gross price per ton 94 81 92 83

Other financial data:
EBITDA (2) $22,424 $62,241 $59,241 $137,078
Net cash flows provided by
operating activities 49,524 61,975 73,646 117,372

(1) Excludes internal gallons produced and used in VE85(TM) sales.
(2) EBITDA is defined as earnings before interest expense, income tax
expense, depreciation and amortization. Amortization of debt issuance
costs and debt discount are included in interest expense.

Reconciliation of EBITDA to Net Income

Management believes that EBITDA is useful in evaluating its operating performance in relation to other companies in its industry because the calculation of EBITDA generally eliminates the effects of financings and income taxes which items may vary for different companies for reasons unrelated to overall operating performance. EBITDA is not a measure of financial performance under generally accepted accounting principles in the U.S., or GAAP, and should not be considered an alternative to net income (loss), or any other measure of performance under GAAP, or to cash flows from operating investing or financing activities as an indicator of cash flows or as a measure of liquidity. EBITDA has its limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of the company's results as reported under GAAP. Some of the limitations of EBITDA are:

-- EBITDA does not reflect the company's cash used for capital
expenditures;
-- Although depreciation and amortization are non-cash charges, the
assets being depreciated or amortized often will have to be replaced
and EBITDA does not reflect the cash requirements for replacements;
-- EBITDA does not reflect changes in, or cash requirements for, the
company's working capital requirements;
-- EBITDA does not reflect the cash necessary to make payments of
interest or principal on the company's indebtedness; and
-- EBITDA includes non-recurring payments to the company which are
reflected in other income.

Because of these limitations, EBITDA should not be considered as a measure of discretionary cash available to the company to service its debt or to invest in the growth of its business. Management compensates for these limitations by relying on the company's GAAP results as well as on its EBITDA.

The following table reconciles the company's EBITDA to net income (loss) for the periods presented (dollars in thousands):

Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006

Net income $7,793 $32,000 $22,617 $54,288
Depreciation and amortization 5,040 2,419 11,120 7,165
Interest expense 12,016 4,446 19,947 34,508
Income tax provision (benefit) (2,425) 23,376 5,557 41,117
EBITDA $22,424 $62,241 $59,241 $137,078

VERASUN ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,
2007 2006
(dollars in thousands)
Cash Flows from Operating Activities
Net income $22,617 $54,288
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 11,120 7,165
Amortization of debt issuance costs
and debt discount 1,357 980
Accretion of deferred revenue (71) (71)
Change in fair value of convertible put warrant - 19,670
Change in derivative financial instruments 3,198 (3,046)
Deferred income taxes 11,017 10,810
(Gain) loss on disposal of equipment (82) 30
Stock-based compensation expense 4,356 21,008
Excess tax benefits from share-based
payment arrangements (8,424) (17)
Changes in current assets and liabilities,
net of affects of business acquisition:
(Increase) decrease in:
Receivables (2,928) 2,076
Inventories (29,193) 3,052
Prepaid expenses (3,335) 2,124
Increase (decrease) in:
Accounts payable 39,476 (10,692)
Accrued expenses 24,538 9,995
Net cash provided by operating activities 73,646 117,372

Cash Flows from Investing Activities
Investment in restricted cash - (1,631)
Purchases of property and equipment (303,241) (15,626)
Payment for other long-term assets (6,496) -
ASA Acquisition (242,775) -
Proceeds from sale of equipment 6 838
Net cash used in investing activities (552,506) (16,419)

Cash Flows from Financing Activities
Proceeds from long-term debt 471,367 -
Proceeds from the issuance of 2,934,747 and
12,754,825 shares of common stock, respectively 12,784 233,135
Excess tax benefits from share-based
payment arrangements 8,424 17
Costs of raising capital (5) -
Debt issuance costs paid (11,539) (1,173)
Net cash provided by financing activities 481,031 231,979
Net increase in cash and cash equivalents 2,171 332,932

Cash and Cash Equivalents
Beginning 318,049 29,714
Ending $320,220 $362,646

Source: VeraSun Energy Corporation

missionsman1

11-17-2007, 01:53 AM

http://quote.stockselector.com/ranking.asp?symbol=VSE

VeraSun Energy Corp. has an overall rank of 1654 out of 7049 stocks based on 11 positive rankings and 3 negative rankings.

Positive Rankings
Top Intrinsic Values
VeraSun Energy rank is 65
PEGValue
VeraSun Energy has a PEG Value of $64.38. A stock is commonly considered to be fairly valued when its PE ratio equals its earnings growth rate. The PEG Value is the price where the PE Ratio, based on next year's earnings estimate, divided by the estimated growth rate over the next couple of years equals 1. This implies that if the company maintains its estimated growth rate, that the stock should gain 482.10% in the next year. Among companies with a PEG Value above the current stock price, VeraSun Energy is ranked 88.
SSValue
The StockSelector Value for VeraSun Energy is $14.48. The StockSelector Value assumes the market consistently prices a stock around a given PE ratio and, therefore, multiplies the average PE (using forward earnings estimates) over the past three years by future earnings estimates. Among companies with a StockSelector Value above the current stock price, VeraSun Energy is ranked 785.
Highest ROA
VeraSun Energy rank is 846
Highest Net Margin
VeraSun Energy rank is 1105
Highest ROE
VeraSun Energy rank is 1341
Debt-to-Equity
VeraSun Energy rank is 1349
Target Prices
The average analysts' target price is $13.00 for VeraSun Energy using target prices set or adjusted within the past 90 days. Among companies with recent target prices and with the average above the current stock price, VeraSun Energy is ranked 1461.
Oversold Stochastics
VeraSun Energy rank is 1509
Price-to-Book
VeraSun Energy rank is 1793
Price-to-Sales
VeraSun Energy rank is 2430
Negative Rankings
Negative EPS Growth
VeraSun Energy rank is 178
10 Day Loss
VeraSun Energy rank is 917
90 Day Loss
VeraSun Energy rank is 992

A common valuation method is the PEG Ratio - the PE Ratio divided by the earnings growth rate. A stock is typically considered to be reasonably priced when its PEG Ratio = 1 or, in other words, the PE equals its growth rate. The PEG Value is the price where the PEG Ratio equals one, using future earnings estimates. Therefore, if the future earnings estimate of $1.37 holds true, and the growth rate stays at the current projection of 74.0%, then within the next 12 to 24 months, VeraSun Energy Corp. should trade around its PEG Value.

The StockSelector Value is based on the idea that the market will typically price a stock at a consistent multiple to future earnings expectations if fundamentals remain basically the same. In the past three years, the market has typically priced VeraSun Energy Corp. at 16.6 times future earnings estimates. Therfore, 12 to 24 months from now, the stock should trade at 16.6 times $1.37. Furthermore, using this theory, VeraSun Energy Corp. should trade between $14.87 and $35.83 next year.

missionsman1

11-29-2007, 10:06 AM

EXCITING GREAT NEWS!!!!!!!!!!!!!!!!! YES!!!!!!!!!!!!!!

AP
VeraSun to Acquire US BioEnergy
Thursday November 29, 7:08 am ET
VeraSun to Buy US BioEnergy in All-Stock Deal to Expand Ethanol Production Capacity

NEW YORK (AP) -- VeraSun Energy Corp., one of the nation's largest ethanol producers, said Thursday it will acquire competitor US BioEnergy Corp. in an all-stock deal in an effort to boost production capacity.
ADVERTISEMENT

Under the agreement, 0.81 share of VeraSun stock will be issued for each outstanding share of US BioEnergy, representing a premium of 11 percent based on last Friday's closing prices.

VeraSun shares will remain outstanding and will represent 60 percent of the combined company, which is expected to have a market capitalization of about $1.5 billion.

The deal is expected to add to earnings in the first full fiscal year of combined operations.

Brookings, S.D.-based VeraSun Chairman, Chief Executive and President Donald L. Endres will serve as CEO. US BioEnergy President and CEO Gorden Ommen will become chairman and VeraSun Chief Financial Officer Danny C. Herron will become president of the combined company.

"This merger is an opportunity for two leading companies in the renewable fuels industry to capitalize on synergies and provide value for shareholders," said Endres in a statement. "It also underscores the commitment of each company to execute on its growth strategy to become a large-scale, low-cost ethanol producer."

After the acquisition is complete, VeraSun will have nine ethanol production facilities in operation and seven additional facilities under construction. By the end of 2008, the company is expected to have a total production capacity of more than 1.6 billion gallons per year. VeraSun currently operates five ethanol production facilities that can produce a combined 560 million gallons of ethanol per year and four more plants under construction. Once those facilities are built, the company expects to be able to produce 1 billion gallons per year.

US BioEnergy, based in Inver Grove Heights, Minn., operates four ethanol plants and has additional facilities under construction expected to boost the company's total production capacity to 750 million gallons per year.

The acquisition comes amid challenging times for the industry, as multiple pressures have dragged down profits and share prices.

Concerns about oversupply have pushed ethanol prices lower, while increased corn costs have made the fuel costlier to produce. The price of raw materials to build new plants has also increased, while the infrastructure needed to transport the fuel has lagged production.

The deal is expected to close in the first quarter of 2008 pending shareholder approval and regulatory clearances.

VeraSun shares closed Wednesday at $10.64. US BioEnergy shares closed at $8.03.

BadThad

11-29-2007, 01:11 PM

Good news! :D

missionsman1

11-30-2007, 04:06 PM

Almost 3 million traded today.

PEIX ran up 40% yesterday. Should have pulled the trigger on that one yesterday. It still closed up 30% from yesterday.

missionsman1

11-30-2007, 04:07 PM

Everyone, keep an eye on this company. Do some DD on this and look at the future potential here. This one will be Big, very Big IMO.

BadThad

11-30-2007, 10:16 PM

Everyone, keep an eye on this company. Do some DD on this and look at the future potential here. This one will be Big, very Big IMO.

Indeed, just seems like it's taking investors a long time to realize the strength of this company. I imagine once people start seeing an E85 pump at every gas station in the USA, the realization that ethanol is the best solution we have to reducing imported oil, the PPS will soar.

missionsman1

12-05-2007, 12:26 AM

VSE been looking good the last few days. Did you get in BadThad?

missionsman1

12-06-2007, 11:12 PM

13.59 up 5.68% After hours 13.75 up another 1.18%

BadThad

12-07-2007, 09:14 AM

VSE been looking good the last few days. Did you get in BadThad?

No, I'm still just watching.....most of my $$$ is tied up in other plays. There's been some nice bottom plays lately, me likey bottomfeeding. :D

missionsman1

12-07-2007, 10:32 AM

Resistance looked to to be around 14.19 . It went to 14.30 and bounced back down to 14.01 now.
It cleared the 50 ma on the 4th

missionsman1

12-07-2007, 12:01 PM

Broke resistance again. Now at 14.39! YES!!!!

BadThad

12-18-2007, 01:04 PM

Things keep getting better for ethanol:

Light Bulbs, Gasoline Will Change With U.S. Energy Bill Passage

By Daniel Whitten

Dec. 18 (Bloomberg) -- The light bulbs in almost every U.S. home and the gasoline in many cars will be altered by energy legislation that the U.S. House of Representatives is set to pass today.

The measure slashes U.S. energy use 8 percent by 2030, environmentalists say. It contains the first new vehicle fuel economy law in 32 years and mandates a fourfold increase in the use of biofuels. The bill, already approved by the Senate, phases out incandescent light bulbs, which have been in use for a century, and places the first limits on the amount of water used in new washing machines and dishwashers.

The legislation even changes the appearance of the Department of Energy in Washington -- by requiring the construction of a set of solar panels almost as large as a football field to help power the building.

``I think it's huge,'' said Earl Jones, senior counsel for Fairfield, Connecticut-based General Electric Co., which was founded by incandescent-bulb developer Thomas Edison. ``Literally, the amount of energy that's being saved by the light-bulb standard alone is more than has been achieved since 1986 for all appliances combined.''

The legislation moves to the House today after the Senate last week removed a provision boosting taxes on oil and gas companies by about $13 billion over 10 years to help pay for extending credits to wind, solar and biomass power producers. The Senate also dropped a requirement that some utilities get 15 percent of their power from renewable sources. President George W. Bush will sign the legislation, his press secretary said.

Funding Needed

Lowell Ungar, policy director for the Alliance to Save Energy in Washington, said that while the bill has some significant measures, it also has many initiatives that won't work unless Congress acts separately to spend tens of billions of dollars to fund them.

``There are dozens and dozens of provisions, some of which I am skeptical will have any impact at all,'' Ungar said. One such provision is intended to develop commercial buildings that produce as much energy as they consume. While the goal is worthy, Ungar said, Congress may not ``have the appetite'' to spend the $1.5 billion through 2018 that is called for in the energy legislation.

Still, proponents say the energy bill will be effective, saving consumers $80 billion in today's dollars by 2030 through more efficient cars and lower electricity and natural gas bills. It also cuts more than 20 percent of the carbon emissions that scientists say must be eliminated by 2050 to fight global warming.

A Blend

The Department of Energy envisions that many automobile gasoline tanks would eventually use a blend of 80 percent gasoline and 20 percent ethanol, a renewable product, according to Alexander Karsner, the agency's top renewable energy official.

The legislation requires that biofuels be blended with gasoline to reduce the amount of petroleum needed for U.S. transportation. The measure approved by the Senate boosts the requirement for production of biofuels to 36 billion gallons in 2022 from 7.5 billion in 2012.

Ethanol producers surged Dec. 14, the day after the Senate passed the bill. Aventine Renewable Holdings Inc. of Pekin, Illinois, soared $1.15, or 11.2 percent, to $11.44 in New York Stock Exchange composite trading.

Companies such as Amsterdam-based Royal Philips Electronics NV, the world's largest light-bulb maker, and GE, seeing the determination by Democrats to act on energy legislation, helped Congress develop the lighting standards that will end the sale of incandescent light bulbs within a decade.

Took Control

Randall Moorhead, vice president of government affairs at Philips Electronics North America, said that after the 2006 elections, in which Democrats took control of both chambers of Congress, his company knew it needed to act.

``We knew that 12 years of pent-up demand by Democrats to do the things they wanted to do was going to be released in a number of ways and one of those ways was in energy efficiency,'' said Moorhead.

Ungar called the light bulb standard ``the single most important efficiency standard in the history of the program.''

By phasing out traditional incandescent light bulbs, the U.S. would cut light bulb electricity use by 60 percent by 2020. The light bulb standard alone will cut Americans' electric bills up to $18 billion annually, Philips estimates.

The bill requires new dishwashers to cut water use by 28 percent and clothes washers by about 40 percent while improving energy efficiency, GE's Jones says.

``The green energy efficiencies here should not be underestimated, they are significant,'' said Senator Maria Cantwell, a Washington Democrat, who helped craft the legislation.

The legislation also requires the Energy Department to build a solar-voltaic wall to power the agency. The $30 million wall will serve as a visitor center promoting solar power, and supply the department with clean energy. The solar wall would ``be a showcase in the nation's capital for the use of solar energy,'' said Monique Hanis, a spokeswoman for the Solar Energy Industries Association.

missionsman1

12-19-2007, 11:15 AM

This companies stock will be over 100.00 one of these days inho.

Press Releases
VeraSun Energy Responds to the Signing of the Energy Independence and Security Act of 2007
BROOKINGS, S.D., Dec. 19 /PRNewswire-FirstCall/ -- In response to the signing of the Energy Independence and Security Act of 2007, which increases the Renewable Fuels Standard (RFS) to require nine billion gallons in 2008 and progressively increase to a 36-billion gallon requirement by 2022, Don Endres, chairman and CEO of VeraSun Energy Corporation (NYSE: VSE), a leading producer of ethanol, issued the following statement:

"We applaud the work of our leaders in Washington, D.C., for their vision in putting our country on a path toward greater energy diversity and sustainability. The expanded Renewable Fuels Standard will significantly reduce our country's dependence on foreign oil and extend our nation's fuel stream. At VeraSun, we are committed to meeting the challenges ahead and producing renewable fuels that benefit the environment and our economy."

"The Renewable Fuels Standard underpins the growth of the industry by providing a clear and positive market signal for investment in new technologies, production, distribution and storage infrastructure. We also believe the demand for ethanol will continue to be driven by market factors as refiners and marketers are economically incented to blend ethanol because of its value as a high-octane, clean-burning fuel component."

About VeraSun Energy Corporation

VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, SD, is a leading producer of renewable fuel. The company has 560 million gallons per year (MMGY) of production capacity through five operating ethanol production facilities in Aurora, SD, Fort Dodge, IA, Charles City, IA, Linden, IN and Albion, NE. Four facilities are currently either under construction or development in Hartley, IA, Welcome, MN, Reynolds, IN, and Bloomingburg, OH. Upon completion of the new facilities, VeraSun will have an annual production capacity of approximately one billion gallons. The Company also has plans to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production.

The Company markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(TM). VeraSun now has approximately 150 VE85(TM) retail locations under contract in over a dozen states and Washington, D.C. For more information, please visit VeraSun's websites at http://www.verasun.com or http://www.VE85.com.

SOURCE VeraSun Energy Corporation
-0- 12/19/2007
/CONTACT: Mike Lockrem of VeraSun, +1-605-696-7527, mlockrem@verasun.com/
/Web site: http://www.verasun.com
http://www.VE85.com /
(VSE)

CO: VeraSun Energy Corporation
ST: South Dakota
IN: OIL
SU: POL

EF-DW
-- AQW072 --
6908 12/19/2007 11:04 EST http://www.prnewswire.com

missionsman1

12-20-2007, 11:03 AM

Press Releases
VeraSun Energy Begins Work on Oil Extraction Facility at Aurora, South Dakota, Ethanol Biorefinery
Process Removes Corn Oil from Distillers Grains; Generates Two Renewable Fuels from One Kernel of Corn

BROOKINGS, S.D., Dec. 20 /PRNewswire-FirstCall/ -- VeraSun Energy Corporation (NYSE: VSE), one of the nation's largest ethanol producers, today announced that it began work on an oil extraction facility at its 120 million-gallon-per-year (MMGY) ethanol biorefinery located near Aurora, S.D. The facility will utilize a technology designed to extract corn oil from distillers grains, a co-product of the ethanol production process.

Production is targeted to begin in the fourth quarter of 2008 and the process is expected to yield 7-8 million gallons of corn oil annually from 390,000 tons of distillers grains. The corn oil will be made available for sale to the biodiesel market. One gallon of corn oil yields approximately one gallon of biodiesel, increasing the production of renewable fuels without creating additional feedstock demand.

"The production of two biofuels from one kernel of corn makes economic and environmental sense," said Pete Atkins, VeraSun vice president, corporate development. "This is a great example of the innovation that will continue to develop as the industry matures. We are pleased to contribute to the commercialization of this technology."

Following installation at the Aurora facility, VeraSun plans to implement the technology at its Fort Dodge and Charles City, Iowa, biorefineries by the end of 2009. The company originally announced its oil extraction technology in November 2006.

"Installing this new process at our production facilities is expected to generate increased revenues and improved production economics," said Atkins. "We believe that this type of technology fits well with our model of being a large-scale, low-cost producer of renewable fuels."

Biodiesel contains no petroleum, but can be blended at any level with petroleum diesel to create a biodiesel blend. According to the National Biodiesel Board, there are approximately 165 biodiesel facilities in operation today and another 84 either under construction or expansion. The industry has grown from a capacity of 500,000 gallons in 1999 to approximately 1.85 billion gallons today with another 1.4 billion gallons expected to come on-line by the end of 2008.

About VeraSun Energy Corporation

VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, SD, is a leading producer of renewable fuel. The company has 560 million gallons per year (MMGY) of production capacity through five operating ethanol production facilities in Aurora, SD, Fort Dodge, IA, Charles City, IA, Linden, IN and Albion, NE. Four facilities are currently either under construction or development in Hartley, IA, Welcome, MN, Reynolds, IN, and Bloomingburg, OH. Upon completion of the new facilities, VeraSun will have an annual production capacity of approximately one billion gallons. The Company also has plans to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production. The Company markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(TM). VeraSun now has approximately 150 VE85(TM) retail locations under contract in over a dozen states and Washington, D.C. For more information, please visit VeraSun's websites at http://www.verasun.com or http://www.VE85.com.

SOURCE VeraSun Energy Corporation
12/20/2007
CONTACT: Mike Lockrem of VeraSun Energy Corporation
+1-605-696-7527
mlockrem@verasun.com
Web site: http://www.verasun.com
http://www.VE85.com

BadThad

12-20-2007, 11:11 AM

That's interesting.....good stuff! :)

missionsman1

12-25-2007, 02:24 AM

Notice the price runup end of day or after hours on fri? Guess what? That is option expiration day and they ran it up to over the 17.50 strike price for dec. I found out from a friend that had some that if you dont call your broker and let them know, they will get exercised if the price goes over the strike by a certain amount. I think he said 5 cents over. His broker got a hold of him over the weekend and let him know that. He then sold them premarket because he saw that it was going to be shorted.

missionsman1

12-28-2007, 10:08 AM

Zacks Bull and Bear of the Day Highlights: VeraSun Energy, Electronic Data Systems, Silgan and CRA International

CHICAGO, Dec 28, 2007 (BUSINESS WIRE) -- Zacks Equity Research highlights VeraSun Energy (NYSE: VSE: 15.63, -0.10, -0.63%) as the Bull of the Day and Electronic Data Systems (NYSE: EDS: 21.03, +0.06, +0.28%) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Silgan Holdings, Inc. (Nasdaq: SLGN) and CRA International (Nasdaq: CRAI). Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all four stocks:

Bull of the Day:

Our Bull of the Day recommendation is for VeraSun Energy (NYSE: VSE: 15.63, -0.10, -0.63%). VeraSun Energy is on the fast track of growth with its imminent merger with fellow biofuel company U.S. BioEnergy. Earlier the fortunes of the company were shackled by the cyclicality of the fragmented ethanol industry. It is expected that the post-merger company in a year will become the largest bio-fuel company in the world. Accordingly, we upgrade VSE to a BUY recommendation with a six-month target price of $20.00, representing 24.7% upside potential.

missionsman1

01-02-2008, 01:07 PM

More Great News!

WASHINGTON, Jan 2 (Reuters) - VeraSun Energy Corp (VSE.N: Quote, Profile, Research) received U.S. antitrust approval to acquire ethanol maker US BioEnergy Corp (USBE.O: Quote, Profile, Research), U.S. officials said on Wednesday.

Antitrust authorities completed their review of the deal without taking any action to block it, the U.S. Federal Trade Commission said in a daily notice of transactions it has reviewed.

In November, VeraSun said it would acquire US BioEnergy in an all-stock deal in which it would issue 0.81 share of its common stock for every US BioEnergy share. VeraSun said the acquisition would boost its ethanol output to a total of 1.6 billion gallons by the end of 2008. (Reporting by Julie Vorman, editing by Gerald E. McCormick)

missionsman1

01-04-2008, 09:20 AM

FTC Grants Early Termination of Waiting Period for VeraSun Energy and US BioEnergy Proposed Merger
Wednesday January 2, 4:17 pm ET

BROOKINGS, S.D., & ST. PAUL, Minn.--(BUSINESS WIRE)--VeraSun Energy Corp. (NYSE: VSE - News) and US BioEnergy Corp. (NASDAQ: USBE - News) today announced that the Federal Trade Commission has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for the proposed merger between VeraSun Energy and US BioEnergy. The merger remains subject to satisfaction of other conditions, including approval of the shareholders of both VeraSun Energy and US BioEnergy.
ADVERTISEMENT

It is anticipated the merger will be completed during the first quarter of 2008.

VeraSun Energy and US BioEnergy initially announced intentions to merge on Nov. 29, 2007. Upon completion of the merger, the combined company will have nine ethanol production facilities in operation and seven additional facilities under construction. By the end of 2008, the combined company is expected to have a total production capacity of more than 1.6 billion gallons per year (BGY) from 16 operating biorefineries.

About VeraSun Energy Corporation

VeraSun Energy Corporation (NYSE: VSE - News), headquartered in Brookings, S.D., is a leading producer of renewable fuel. Founded in 2001, the company has 560 million gallons per year (MMGY) of production capacity through five operating ethanol production facilities in Aurora, S.D., Fort Dodge and Charles City, Iowa, Linden, Ind., and Albion, Neb. Four facilities are currently either under construction or development in Hartley, Iowa, Welcome, Minn., Reynolds, Ind., and Bloomingburg, Ohio. Upon completion of the new facilities, VeraSun Energy will have an annual production capacity of approximately one billion gallons. The company also has plans to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production.

The company markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85™. VeraSun Energy now has approximately 150 VE85™ retail locations under contract in over a dozen states and Washington, D.C. For more information, please visit VeraSun Energy’s websites at www.verasun.com or www.VE85.com.

About US BioEnergy Corporation

US BioEnergy Corporation (NASDAQ: USBE - News), based in St. Paul, Minn., is a producer and marketer of ethanol and distillers grains. Founded in 2004, the company currently owns and operates four ethanol plants in Albert City, Iowa, Ord and Platte Valley, Neb., and Woodbury, Mich. Four additional ethanol plants are currently under construction in Marion, S.D., Hankinson, N.D., Dyersville, Iowa, and Janesville, Minn. Upon completion of these initiatives, the company will own and operate eight plants with combined expected ethanol production capacity of 750 million gallons.

Additional Information

In connection with the proposed transaction between VeraSun Energy and US BioEnergy, VeraSun Energy has filed a registration statement on Form S-4 with the SEC. Such registration statement includes a preliminary joint proxy statement of VeraSun Energy and US BioEnergy that also constitutes a preliminary prospectus of VeraSun Energy. The material contained herein is not a substitute for the preliminary joint proxy statement/prospectus and any other documents VeraSun Energy or US BioEnergy intend to file with the SEC. SHAREHOLDERS ARE URGED TO READ THE PRELIMINARY JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS, INCLUDING THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS, WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT VERASUN ENERGY, US BIOENERGY AND THE PROPOSED TRANSACTION. The preliminary joint proxy statement/prospectus and other documents relating to the proposed transaction (when they are available) can be obtained free of charge from the SEC’s website at www.sec.gov. These documents (when they are available) can also be obtained free of charge from VeraSun Energy upon written request to VeraSun Energy Corporation, Attention: Investor Relations, 100 22nd Avenue, Brookings, South Dakota 57006, or by calling 605-696-7236, or from US BioEnergy, upon written request to US BioEnergy Corporation, Attention: Investor Relations, 5500 Cenex Drive, Inver Grove Heights, Minnesota 55077, or by calling 651-554-5491.

Participants in the Proposed Transaction

This communication is not a solicitation of a proxy from any security holder of VeraSun Energy or US BioEnergy. However, VeraSun Energy, US BioEnergy and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from shareholders in connection with the proposed transaction under the rules of the SEC. Information about the directors and executive officers of VeraSun Energy may be found in its 2006 Annual Report on Form 10-K filed with the SEC on March 29, 2007, definitive proxy statement relating to its 2007 Annual Meeting of Shareholders filed with the SEC on April 12, 2007 and current reports on Form 8-K filed with the SEC on July 3, 2007, August 31, 2007, September 20, 2007 and December 26, 2007. Information about the directors and executive officers of US BioEnergy may be found in its 2006 Annual Report on Form 10-K filed with the SEC on March 30, 2007, definitive proxy statement relating to its 2007 Annual Meeting of Shareholders filed with the SEC on April 27, 2007 and current reports on Form 8-K filed with the SEC on August 13, 2007, October 3, 2007 (as amended) and November 6, 2007. These documents can be obtained free of charge from the sources indicated above. Additional information regarding the interests of these participants is also included in the preliminary joint proxy statement/prospectus referred to above.

Forward-Looking Statements

Certain statements in this communication regarding the proposed transaction between VeraSun Energy and US BioEnergy, the expected timetable for completing the transaction, benefits and synergies of the transaction, future opportunities for the combined business and products and any other statements regarding VeraSun Energy’s and US BioEnergy's future expectations, beliefs, goals or prospects constitute forward-looking statements made within the meaning of Section 21E of the Securities Exchange Act of 1934. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered forward-looking statements. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, including the parties' ability to consummate the transaction; the conditions to the completion of the transaction, including the receipt of shareholder approval or the regulatory approvals required for the transaction may not be obtained on the terms expected or on the anticipated schedule; the parties' ability to meet expectations regarding the timing, completion and accounting and tax treatments of the transaction; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the arrangement within the expected timeframes or at all and to successfully integrate their operations; such integration may be more difficult, time-consuming or costly than expected; operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the transaction; the retention of certain key employees of the parties may be difficult; VeraSun Energy and US BioEnergy are subject to intense competition and increased competition is expected in the future; the volatility and uncertainty of corn, natural gas, ethanol and unleaded gasoline prices; the results of VeraSun Energy’s and US BioEnergy’s hedging transactions and other risk mitigation strategies; operational disruptions at VeraSun Energy’s or US BioEnergy’s facilities; VeraSun Energy’s and US BioEnergy’s ability to implement their expansion strategies as planned or at all; VeraSun Energy’s and US BioEnergy’s ability to locate and integrate potential future acquisitions; VeraSun Energy’s and US BioEnergy’s ability to develop an oil extraction business; development of infrastructure related to the sale and distribution of ethanol; VeraSun Energy’s and US BioEnergy’s limited operating histories; excess production capacity in VeraSun Energy’s and US BioEnergy’s industry; VeraSun Energy’s and US BioEnergy’s ability to compete effectively in its industry; VeraSun Energy’s and US BioEnergy’s ability to implement a marketing and sales network for their ethanol; changes in or elimination of governmental laws, tariffs, trade or other controls or enforcement practices; environmental, health and safety laws, regulations and liabilities; future technological advances; limitations and restrictions contained in the instruments and agreements governing VeraSun Energy’s and US BioEnergy’s respective indebtedness; VeraSun Energy’s and US BioEnergy’s ability to raise additional capital and secure additional financing; VeraSun Energy’s and US BioEnergy’s ability to implement additional financial and management controls, reporting systems and procedures; costs of construction and equipment; and the other risk factors described in VeraSun Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and in its most recent quarterly report filed with the SEC, and US BioEnergy's Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and in its most recent quarterly report filed with the SEC. These documents can be obtained free of charge from the sources indicated above under the caption “Additional Information”. VeraSun Energy and US BioEnergy assume no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

Contact:
VeraSun Energy Contacts:
Investors:
Patty ****erson, 605-696-7236
p****erson@verasun.com
or
Media:
Mike Lockrem, 605-696-7527
mlockrem@verasun.com
or
US BioEnergy Contacts:
Investors:
Rich Atkinson, 651-554-5491
investor@usbioenergy.net
or

BadThad

02-25-2008, 11:00 AM

Unreal how this stock is plummeted, trading at $8.99 this morning. Demand for ethanol keeps increasing, the merger is now completed. I see analysts are expect ESP to be -0.02 on March 12. Must be the costs related to the merger.

missonman - Have you seen anything on how the sales of E85 is doing? Seems consumer acceptance is luke-warm at best. I'm just glad to see a lot more E85 vehicles coming out from the mfgs. If people start using E85 more, we'll cut back on imported oil, fairly significantly IMO.

missionsman1

02-27-2008, 12:51 AM

Press Release Source: VeraSun Energy Corp.

VeraSun Energy and Kroger Expand VE85(TM) Availability to Texas
Tuesday February 26, 8:30 am ET
VeraSun's Branded E85 to be Offered at 20 Kroger Locations Near Dallas and Houston

BROOKINGS, S.D., Feb. 26 /PRNewswire-FirstCall/ -- VeraSun Energy Corp. (NYSE: VSE - News), one of the nation's largest ethanol producers, and The Kroger Co. (NYSE: KR - News) today announced the opening of 20 VE85(TM) fueling locations at existing E85 Kroger convenience stores in Texas. Kroger will offer VeraSun's branded E85, a blend of 85 percent ethanol and 15 percent gasoline, for flexible fuel vehicles at 20 different locations in and around the Dallas and Houston metro areas.
ADVERTISEMENT

"The combination of an established Kroger brand with our emerging VE85(TM) brand is important as we continue to expand to new markets," said Bill Honnef, VeraSun senior vice president, strategic initiatives. "There is a growing demand for E85 in the United States as the number of flexible fuel vehicles on our roads increases, and having a partnership with a national retailer like Kroger adds tremendous value to our initiative of increasing overall E85 availability."

With the addition of the 20 VE85(TM) fueling locations in Texas, VeraSun now has more than 140 retail fueling stations in 13 states and the District of Columbia. VeraSun and Kroger initially partnered in August 2007 to open VE85(TM) fueling locations at 20 Kroger convenience stores primarily in Ohio, making Kroger the first national retailer to sell VE85(TM). With the addition of the Texas locations, VE85(TM) is now available at 44 different Kroger fueling locations in four states.

Headquartered in Cincinnati, Kroger operates almost 2,500 supermarkets and multi-department stores in 31 states. The company also has more than 750 convenience stores and 650 supermarket fuel centers. Currently the state of Texas has 30 retail E85 fueling locations, 20 of which are Kroger locations.

"We look forward to offering VE85(TM) to our customers who have flexible fuel vehicles," stated Roman Williams, Kroger southwest fuel merchandiser. "Our Kroger fuel centers have been leaders with new fuel products and services like E85 and fuel rewards."

According to the Texas State Energy Conservation Office, Texas has more registered flexible fuel vehicles than any other state. The National Ethanol Vehicle Coalition estimates that number to be more than 500,000 registered FFVs.

E85 is a high-octane, cleaner-burning fuel, with an octane rating of 100 or greater and the highest oxygen content of any fuel available today. The Argonne National Laboratory reported that the use of 6.5 billion gallons of ethanol in the United States during 2007 resulted in the reduction of greenhouse gas emissions by approximately 10 million tons. The use of E85 alone contributes to a 20 percent reduction in ozone-forming pollution and a 30 percent reduction in greenhouse gas emissions.

VE85(TM) was launched in May 2005 with seven stations in Sioux Falls, S.D., and is now available in Chicago, Minneapolis-St. Paul and Pittsburgh, in addition to the Ohio metro areas of Cincinnati, Columbus and Toledo. In June, VeraSun, General Motors and Enterprise Rent-A-Car partnered to open the first E85 retail location in Washington, D.C.

VeraSun is committed to developing markets for renewable fuels and helping consumers realize a future that includes renewable energy. Consumers interested in learning more about VE85(TM), and where to find VE85(TM) stations, can visit http://www.VE85.com.

VE85(TM) available at the following Texas Kroger locations:

Location Address

Dallas Area:
Carrollton 4038 Old Denton Road
Dallas 3939 Frankford at Midway
Irving 7505 North MacArthur Boulevard
North Richland Hills 9135 Grapevine Highway
Mansfield 3001 Matlock Road
Crowley 1004 South Crowley Road
Plano 9700 Coit Road
Sachse 5190 Highway 78

Houston Area:
Houston 1801 South Voss Road
Katy 1705 Fry Road & Park Row
Pearland 8323 Broadway
Conroe 2222 I-45 North
Cypress 17455 Spring Cypress
Houston 12434 Tomball Parkway
Humble 3820 Atascocita Road
Houston 8500 Highway 6 North
Sugar Land 11565 State Highway 6 South
Magnolia 6616 Highway 1488
League City 2750 East League City Parkway
Spring 6060 FM 2920 at Kuykendahl

About VeraSun Energy Corporation

VeraSun Energy Corporation (NYSE: VSE - News), headquartered in Brookings, S.D., is a leading producer of renewable fuel. Founded in 2001, the company has 560 million gallons per year (MMGY) of production capacity through five operating ethanol production facilities in Aurora, S.D., Fort Dodge and Charles City, Iowa, Linden, Ind., and Albion, Neb. Four facilities are currently either under construction or development in Hartley, Iowa, Welcome, Minn., Reynolds, Ind., and Bloomingburg, Ohio. Upon completion of the new facilities, VeraSun Energy will have an annual production capacity of approximately one billion gallons. The company also has begun construction at its Aurora facility to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production.

VeraSun markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(TM). VeraSun Energy now has approximately 150 VE85(TM) retail locations under contract in more than a dozen states and Washington, D.C. For more information, please visit VeraSun Energy's websites at http://www.verasun.com or http://www.VE85.com.

--------------------------------------------------------------------------------
Source: VeraSun Energy Corp.

BadThad

02-27-2008, 09:00 AM

HAHAHAHA....my question timed with a PR about it! LOL

BadThad

03-14-2008, 01:50 PM

Same old story for all major stocks.....a new low set today of $6.23.

BadThad

05-12-2008, 02:40 PM

Earnings out tomorrow, PPS up today in anticipation.

BadThad

05-19-2008, 01:20 PM

Up almost 18% today! 8-|

Agriculture stocks trade broadly higher in wake of farm bill
1:32p ET May 15, 2008 (MarketWatch)
WASHINGTON (MarketWatch) -- Most agricultural-related stocks traded higher in the wake of the Senate's passage of the farm bill by a veto-proof majority. Ethanol-related shares stood out from the pack, with Aventine Renewable Energy up more than 9% and VeraSun Energy ahead more than 4%. Away from biofuels, shares of Deere & Co. were a standout, rising nearly 3% following earnings-induced selling pressure on Wednesday. Navistar Internatonal also gained, up more than 1%. Similar gains also were scored by Bunge Ltd. , Potash Corp. of Saskatchewan , Agrium Inc. and CF Industries Holdings . Shares of Mosaic Corp. , a supplier of crop nutrients, traded 2% higher.

BadThad

06-11-2008, 02:52 PM

VSE set a new low today of $5.19. This is crazy, seems investors are punishing VSE for using corn. Yea, I realize the price of corn is up and will continue up, but VSE is in good shape as a company and ethanol demand is only going to continue to increase.

BadThad

06-12-2008, 01:15 PM

Downgrade sends VSE shares to new low today:

Wall St. downgrades shares of ethanol makers, corn refiners
11:50a ET June 12, 2008 (MarketWatch)
SAN FRANCISCO (MarketWatch) -- Wall Street downgrades Thursday clobbered shares of Archer Daniels Midland , Corn Products International , Biofuel Energy Corp. and other ethanol makers. Analysts at BMO Capital Markets and Citigroup cut their stock-ratings on the companies over concerns that massive flooding in the midwest U.S. will hurt this year's corn crops. In late morning trading, Corn Products tumbled 8%, ADM sank 7%, Biofuel Energy plunged 25% and VeraSun Energy dropped 12%. Meanwhile, traders pushed up contract prices of July corn futures to $7.04 a bushel on the Chicago Board of Trade.

missionsman1

06-12-2008, 08:51 PM

This link is very interisting. It show all 144 funds in VSE and who is buying, selling, new owners, adding more etc!

Verasun Energy Corp (VSE) stock was recently dumped by 27 Funds! (http://www.mffais.com/vse.html)

LONG BEACH (Mffais.com) - Macquarie Group Ltd added the Verasun Energy Corp (VSE) company to their portfolio, by buying 28,654 shares as shown by filings made public on 2008-06-11.
The stock is currently owned by 144 funds/institutions with a total activity score of 0.22. With 55.63 % of owning funds reported recently buying shares, 7.51 % maintaining existing share level and 36.84 % selling shares

BadThad

06-13-2008, 08:13 AM

OUCH! Hey, that's a great website! Thanks for the link! :biggrin:

lena

06-13-2008, 01:52 PM

buy 1-2days

BadThad

06-13-2008, 02:12 PM

Hi lena....maybe sooner. Looks to be pretty stable today, the sell-off could be over.

lena

06-13-2008, 02:16 PM

Hi lena....maybe sooner. Looks to be pretty stable today, the sell-off could be over.

u r right

thx

BadThad

06-16-2008, 10:33 AM

And....maybe not...the price of corn is going to get worse. VSE downgraded to sell, this is bad news. VSE set a new 52-week low again today:

Floods take heavy toll on U.S. grain crops
6:15p ET June 13, 2008 (MarketWatch)
SAN FRANCISCO (MarketWatch) -- Devastating floods in Iowa and torrential rain in other Midwestern states have taken a heavy toll on crops, throwing the door wide open to higher costs on the farm and the nation's food shelves.

Hardest hit is corn and soybeans from some of the country's top-producing states, Iowa, Illinois, Nebraska, Wisconsin and Minnesota. Both grains are at the foundation of the food pyramid, used extensively as primary ingredients and as livestock feed.

Farmers, traders, and agricultural experts are scrambling to assess the impact of heavy rains that over the past week have swept through parts of Nebraska, Iowa, Illinois, Indiana, and Minnesota. The storms have flooded rivers throughout Iowa and raised the Mississippi River to dangerously high levels.

Darin Newsom, grains analyst at market-watcher DTN Ag, said preliminary guesswork is pegging lost acreage from the storms at 1 million to 3 million acres.

This could deplete as much as 3.5% of U.S. corn projected to be planted this year, based on the latest crop estimates from the U.S. Agriculture Department.

"We're looking at very serious reductions," Newsom said.

The USDA, which is taking a survey of farmers now, will update its corn acreage estimate on June 30. Prior to the devastating storms this week, "We know the crop had lost some potential," said USDA grains analyst Jerry Norton.

Fallout from the storm poses risks to the global corn market. The U.S., by far, is the world's largest exporter of corn. On the upside, corn production in China, Russia, and the Ukraine has gone well so far this year.

One probability: Rationing of already dwindling supplies. U.S. corn inventories already are forecasted to end the 2008 growing season at their lowest level since 1995, the USDA says.

"It will be tighter suppliers for the next 15 months," said corn farmer Keith Bolin, of Manlius, Ill., who also is president of the American Corn Growers Association. "We'll have to ration crops till September 2009."

Such a move would slow the release of corn to the marketplace in a bid to ensure supplies last through the next harvest. But it is also likely to have a prompt impact on already soaring corn futures contracts, driving them even higher.

On the Chicago Board of Trade, July contracts for corn have spiked 20% since June 3 to $7.31. December contracts stand at 7.65. Based on those prices, corn farmers could fetch at least $6.50 a bushel for corn sold in the fall and winter months. Analysts now anticipate corn futures to push over the $8-a-bushel level next month. See Food Futures.

Wall Street analysts are getting nervous about the 2008 corn crop. On Thursday, BMO Capital Markets and Citigroup downgraded shares of ethanol makers and corn refiners.

BMO Capital cut Archer Daniels and Corn Products International to market perform, while Citigroup downgraded Archer Daniels to hold and Biofuel Energy Corp. and VeraSun Energy to sell.

Shares of all companies tumbled on the rating cuts.

"The current situation is very unusual and represents one of the worst cases of flooding in history across the midcornbelt during the development of the crop," Citigroup said.

The last time the region's grain crop was hard hit by weather was 1993.

Food makers are likely to fell the supply squeeze, depending on how well they've hedged their grain needs for the rest of the year. This list ranges from chicken producers Tyson Foods Inc. and Pilgrim's Pride to cereal makers General Mills and Kellogg .

Meanwhile, soybean farmers are in flux. There still may be a shot at shifting damaged corn fields to soybeans. But those decisions could be risky and farmers may decide to stop planting and file for an insurance payment to claim losses against lost acres, one observer said.

This, along with other factors, such as exorbitant energy prices, will play of role in pushing food prices at grocery stores to even loftier levels. In 2007, retail food prices jumped 4%, the biggest annual spike in 18 years.

Much to the chagrin of consumers -- also hamstrung by rising gas-pump prices and falling home values -- the USDA projects retail food prices to shoot up at least another 4% this year.

Before the recent rain storms, the corn planting season in the U.S. had gotten off to a slow start due to wet fields across the Midwest. Farmers usually plant corn seeds in early April through mid-May, harvesting the crop in mid-August through September.

Now, it's too late to replace corn plantings washed away by the floods or fields saturated by too much water, observers contend. Corn that sits in high water for three days dies in most cases. That's because important nitrogen fertilizers that make corn stalks stronger dissipate or disappear.

This is putting yields, or the amount of corn bushels per acre, in question.

In its report this week, the USDA lowered its projection to 148.9 bushels per acre -- that's 6 bushels below the trend for 1990 through 2007. The government will likely be forced to revise that number when it issues its next report July 11, said Newsom at DTN.

The current figure "will be quite difficult to achieve," he remarked.

With farmers likely to concede lost acreage to the floods, the biggest threat now to the remaining crop is July's weather pattern for the nation's corn-belt: Hot and dry weather would be adverse. "We would not want scorching weather in July," said Bolin.

July is always an edgy month in the grain-exchange trading pits in Chicago and elsewhere, with traders looking to glean what the year's crop will deliver.

"It will be the most interesting summer from an agricultural and economic standpoint," said Newsom, a 20-year veteran of the grains markets.

BadThad

06-17-2008, 04:26 PM

Another new low set today. This is looking like FRPT! How low can the stock price go? .....jez....

VeraSun to Delay Ethanol Plant Openings in Minnesota and Iowa, an Industrial Info News Alert
6:00a ET June 17, 2008 (Market Wire)
Researched by Industrial Info Resources (Sugar Land, Texas)--VeraSun Energy Corporation (NYSE:VSE)(Brookings, South Dakota) has delayed the opening of two fuel-ethanol plants that are nearing construction completion in Welcome, Minnesota, and Hartley, Iowa. Although the plants will be completed as scheduled, production will not begin until corn and ethanol market conditions improve. Other small and midsize ethanol producers could be forced to shut down operations.

Theboundbook

06-18-2008, 05:02 AM

Another new low set today. This is looking like FRPT! How low can the stock price go? .....jez....

Well, to me, this looks good when you say it looks like FRPT. Been making bank shorting left and right. Hate myself for not doing options on FRPT when it was down around 2.70..... But, happy with 20% or so profit every 7 days....

BadThad

06-26-2008, 04:05 PM

Still in the gutter at $4.04 today and the outlook looks gloomy:

S&P eyes 'political event risk' for ethanol
12:15p ET June 26, 2008 (MarketWatch)
NEW YORK (MarketWatch) -- The U.S. remains the largest ethanol producer in the world, even as spiking commodity and food prices kill profits for domestic biofuel names, an S&P study on the controversial fuel said Thursday.

The study zeroes in on a growing "political event risk" for the ethanol industry, if the food-verses-fuel debate sways public opinion and cuts into heavy government support in the form of tariffs and farm subsidies.

Globally, the U.S. leads ethanol production with 6.6 billion gallons in 2007, close to the government's 2012 target of 7.5 billion gallons, and ahead head of the Renewable Fuels Standard minimum requirement.

"With the exception of Brazilian sugar-cane based ethanol production, strong biofuel volume growth spells low profitability," said the study, which comes on the heels of rock-bottom stock prices for some ethanol makers.

Archer Daniels Midland has escaped some of the pain, however, because of its diversified product mix and economies of scale with its other businesses, S&P said.

Pure plays, such as VeraSun , have struggled, with one new ethanol plant now on ice because of rising costs. See full story.

For now, however, Brazil remains fertile, with an expected industry investment of about $17 billion by 2012.

In Brazil, Cosan S.A. remains the largest player with about 10% of total crushing capacity, but larger Bunge, Cargill Inc. and Tereos Union de Cooperatives Agricoles have recently expanded into the Brazilain market.

"These companies seek to reap upside potential in Brazil by exploring low-cost and globally competitive ethanol production in the country," S&P analysts Michael Seewald and Vivian Zietemann said in their June 26 report.

Meanwhile, chicken-wing restaurants and egg producers have joined other food companies in lobbying for a partial roll-back of the national Renewable Fuels Standard, which mandates the use of biofuels.

BadThad

06-30-2008, 03:11 PM

News of another plant delay:

VeraSun Delays Another Ethanol Plant Start-Up, an Industrial Info News Alert
7:28a ET June 30, 2008 (Market Wire)
Researched by Industrial Info Resources (Sugar Land, Texas) -- The nation's second largest ethanol producer, VeraSun Energy Corporation (NYSE:VSE) (Brookings, South Dakota), has delayed the opening of another new fuel ethanol plant.

OK, now this article is out about corn dropping in price by the maximum permitted amount. Corn production is headed for another banner year, even with the flooding. Seems there's plenty of corn based on what I'm reading. Why does VSE's pps continue to be so depressed?

Bloomberg.com: Worldwide (http://www.bloomberg.com/apps/news?pid=20601087&sid=a5snZ7tohe30&refer=home)

BadThad

06-30-2008, 03:52 PM

Another article on corn:

U.S. corn area still a puzzle | Special Coverage | Reuters (http://www.reuters.com/article/reutersEdge/idUSN3044773120080630)

OK, these guys can talk all they want and speculate. I'm telling you what I saw just this weekend in Indiana. I lived in Indiana for a good part of my life and I've seen my share of corn fields. LOL This weekend the corn looked WAY WAY better than last year. It was already up to my knee's and looked very healthy. While some areas in Indiana were flooded, the south-east area had no issues, in fact, there's been perfect amount of rain....the makings for a bumper crop. Next time I'm over there I'll talk to a farmer or two and get the real story on Indiana corn, but I get a feeling they will be happy about it with the rain and price increases.

Last year was EXTREMELY dry for most of the mid-west and the US produced a record crop. Indiana had no rain for around two months and the corn looked horrible when I was there. This year looks fantastic and, even with the flood losses, I'm predicting an excellent corn crop because the rain actually helped in many parts.

BadThad

07-18-2008, 10:10 AM

UBS upgraded VSE to BUY today, PPS is up 14%.

BadThad

08-07-2008, 02:46 PM

Some good news for VSE:

NEW YORK (CNNMoney.com) -- The U.S. Environmental Protection Agency announced Thursday it will not curtail a rule requiring that ethanol be added to gasoline, turning back criticism that the additive was artificially raising food prices.

Texas Gov. Rick Perry petitioned the EPA in late April to grant a 50% waiver on the nation's Renewable Fuel Standard (RFS), which calls for 9 billion gallons of corn-based ethanol to be added to gasoline supplies this year.

"I am greatly disappointed with the EPA's inability to look past the good intentions of this policy to see the significant harm it is doing to farmers, ranchers and American households," said Perry in a statement. "For the EPA to assert that this federal mandate is not affecting food prices not only goes against common sense, but every American's grocery bill."

After a weeks-long delay in its ruling, EPA Administrator Stephen Johnson said the government agency denied the waiver request because it did not find that the RFS caused "severe economic harm."

"The EPA's professional staff conducted a detailed analysis ... and found that the Renewable Fuel Standard mandate is not causing severe economic harm, but rather strengthening the nation's energy security and farm communities," Johnson said on a conference call with reporters.

The EPA held a period of public comment about the standard in June and received over 15,000 comments, according to the government body. Though many came out in favor of the standard, others said the RFS will contribute to a sharp rise in food prices if not reduced.

"Rising food prices are a problem, and as a nation we must work together on these challenges," said Johnson. "But is that the result of the RFS mandate, and are those price increases meeting the statutory requirement of severe detriment to the economy? That answer is no."

The EPA acknowledged that the RFS has resulted in a rise in corn feed prices, but said the mandate has only added 7 cents to each bushel.

But Gov. Perry said the RFS has put undue pressure on the already struggling livestock business.

"Denying Texas' request is a mistake that will only increase the already heavy financial burden on families while doing even more harm to the livestock industry," said Perry. "Any government mandate that artificially props-up a single industry to the detriment of millions of Americans is bad public policy."

Good intentions harming economy?
The EPA currently requires that 7.76% of gasoline products be blended with ethanol in 2008. That amounts to about 9 billion gallons that U.S. ethanol producers have to put out this year. Next year, they will have to produce 11.1 billion gallons of corn-based ethanol.

"The RFS is designed to expand annual biofuel use to 36 billion gallons by 2022 with 21 billion gallons from switch grass, wood chips, municipal garbage, and other cellulosic sources," said Renewable Fuels Association President Bob Dinneen in a statement. "We applaud the EPA for keeping America squarely on the path toward greater energy independence."

But Perry said the EPA is missing a chance to help American families who have unintentionally been hurt by the EPA's mandate.

"Good intentions and laudable goals are small compensation to the families, farmers and ranchers who are being hurt by the federal government's efforts to trade food for fuel," said Perry. "Congress specifically created an emergency waiver provision for situations like these and EPA refuses to implement it."

The EPA had originally said it would make a decision on the waiver by July 24, but last month said it needed more time to review the comments and consult with the departments of Agriculture and Energy.

BadThad

08-12-2008, 04:04 PM

I just knew the corn crop would be good! VSE up 10% in this bear market today.

Corn closes higher after falling below $5 a bushel - MarketWatch (http://www.marketwatch.com/news/story/corn-closes-higher-after-falling/story.aspx?guid=%7B39C6AB4A-F3E2-48F4-A5FF-C564E34CB26D%7D)

missionsman1

08-14-2008, 01:00 AM

Ethanol producer VeraSun Energy has announced that its revenues for the second quarter of 2008 increased 499% to $1.02 billion, compared to $170 million in the second quarter of 2007.

BadThad

08-14-2008, 08:08 AM

Thanks missionman....I missed the earnings report! DOH! Too many stocks and not enough time! That's an amazing number! 8-|

Some more important news out:

VeraSun Energy files $750 mln stock, debt offering
7:11a ET August 14, 2008 (MarketWatch)
NEW YORK (MarketWatch) -- VeraSun Energy Corp. on Thursday filed plans to raise up to $750 million in an offering of common stock, preferred stock, depositary shares, debt securities, warrants, subscription rights, purchase contracts, and purchase units. The Brookings, S.D., ethanol maker plans to use the money for working capital and other general corporate purposes, which may include the repayment or refinancing of outstanding debt. As of July 31, VeraSun owns and operates 12 ethanol production facilities in the U.S., with a combined capacity of approximately 1.2 billion gallons per year. VeraSun's ethanol production capacity represents approximately 12.7% of the total ethanol production capacity in the U.S., according to the Renewable Fuels Association.

BadThad

08-14-2008, 11:08 AM

Looks like investors didn't like the latest news, probably because of the additional stock being issued....down over $1 today. Too bad after that killer earnings report.

missionsman1

08-14-2008, 07:51 PM

VeraSun Energy Announces Startup of Hartley, Iowa, Ethanol Biorefinery
BROOKINGS, S.D., Aug. 14 /PRNewswire-FirstCall/ -- VeraSun Energy Corp. (NYSE: VSE), one of the nation's largest ethanol producers, today announced the startup of its 110 million gallon per year ethanol biorefinery located near Hartley, Iowa. The Hartley production facility marks the 13th VeraSun biorefinery in operation, increasing the company's annual production capacity to more than 1.3 billion gallons.

"We are pleased to bring our Hartley ethanol biorefinery into production," VeraSun CEO Don Endres said. "It is one of the largest and most efficient facilities in the nation and further expands VeraSun's production platform to provide additional scale to our business. We appreciate the support of our team, business partners, and the community of Hartley to help make this day a reality."

Located on a 350-acre site west of Hartley, construction on the facility began in November 2006. The biorefinery will annually process approximately 39 million bushels of corn and produce about 350,000 tons of distillers grains for livestock feed, in addition to employing approximately 55 workers.

VeraSun Hartley is the fourth VeraSun facility to come on-line this year, joining sister production facilities in Marion, S.D., Bloomingburg, Ohio, and Hankinson, N.D. According to the Iowa Renewable Fuels Association, the Hartley facility is the 31st operating ethanol biorefinery in the state of Iowa, expanding overall production throughout the state to almost 2.5 billion gallons annually.

"At 2.5 billion gallons, Iowa is producing more ethanol than what that state consumes in gasoline annually, thus becoming a net exporter of transportation fuel," Endres said. "While the national debate continues on how to solve our energy crisis, Iowa is showing the nation how we can become less reliant on foreign oil today."

About VeraSun Energy Corporation

VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, S.D., is a leading producer and marketer of ethanol and distillers grains. Founded in 2001, the company has a fleet of 16 production facilities in eight states, of which two are still under construction. VeraSun Energy is scheduled to have an annual production capacity of approximately 1.64 billion gallons of ethanol and more than five million tons of distillers grains by the end of 2008.

VeraSun also markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(R). For more information, please visit VeraSun Energy's websites at VeraSun Energy: America's Source for Renewable Fuels® (http://www.verasun.com) or VE85™ - 85% Ethanol from VeraSun Energy for FlexFuel Vehicles (http://www.VE85.com).

Forward-Looking Statements

Statements included or incorporated by reference in this document are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. They are based upon our current beliefs and expectations, are subject to risks and uncertainties outside of our control, and actual results might differ materially from these estimates and statements. Factors that may cause actual results to differ include the volatility and uncertainty of commodity prices, results of our hedging and other risk mitigation strategies, results of our acquisitions, operational disruptions at our facilities; our ability to implement our expansion strategy; development of infrastructure related to the sale and distribution of ethanol; excess production capacity in our industry; our ability to compete effectively in our industry; changes in or elimination of governmental laws, tariffs, trade or other controls or enforcement practices; environmental, health and safety laws; our reliance on key management personnel; future technological advances; limitations and restrictions contained in the instruments and agreements governing our indebtedness; and our ability to raise additional capital and secure additional financing, as more fully described in the "Risk Factors" sections of our annual report on Form 10-K for the year ended December 31, 2007 and our quarterly report on Form 10-Q for the quarter ended June 30, 2008. We are not under any obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any forward-looking statement, whether written or oral, that may be made from time to time.

SOURCE VeraSun Energy Corp.

BadThad

08-15-2008, 09:00 AM

Wow....this company just keeps going and going. :)

BadThad

09-26-2008, 08:38 AM

PPS bombed.....interesting article:

Big ethanol maker Poet ramping up cellulosic production - MarketWatch (http://www.marketwatch.com/news/story/big-ethanol-maker-poet-ramping/story.aspx?guid=%7B459318FD%2DDFED%2D4844%2DBE4D%2 D7C2E7F034ECA%7D)

drozhenbane

10-24-2008, 05:03 PM

For anyone that is in this stock, I would like to let you know I live less than 1 hour away from this companies HQ. Ethanol is very big in this part of the country so if you need any assistance validating this company just send me a private message and I would be glad to talk about it.

Also a word of caution:

Wheather has not been kind in this region for harvesting of corn, and ethanol companies are running low on thier corn reserves. The reason is late season rain falling, preventing the harvest, you can expect this bad news to drive this stock further south.

I also have a position in this company as well, and I have alot of experience in ethanol industry in general.

On a positive note corn yield is 3% higher this year per acre than last year!

BadThad

10-25-2008, 07:25 PM

I'm expecting an excellent corn crop this year. Last year serious drought hurt the crop, this year we had plenty of rain. I always watch VSE's share price but it seems everyone is so against ethanol these days the share price is really been driven down. Regardless, ethanol is the fastest, easiest solution to reducing dependency on imported oil.

drozhenbane

10-26-2008, 10:07 AM

I cant agree more, the old wives tales of it taking more energy to produce ethanol than the gain from it are from VERY outdated numbers (think 1970's) call me crazy but noone trades stocks based on revenue filings from 30+ years ago.

A very valid point I want to make to anyone thinking of ethanol or possibly investing in it is this.

The corn does not get used entirely to make ethanol!

I will break this down in very basic summary of the typical ethanol business model.

Corn is purchased from farmers(Growers), sold to elevators(Middle Man) then sold again to Ethanol Plant(Manufacturer).

The plant then grinds the corn, ferments it, then distills the ethanol from the fermented product. After the ethanol is extracted, the left overs are seperated into 2 products Water and DG(Distillers Grain). The water is returned into the process, and the DG is then dried to make thier final product which is called DDG(Dried Distillers Grain). This DDG is then sold to Ranchers(Producers) to feed thier cattle/Pigs/Poultry which in turn is then slaughtered and feed to you, or possibly milked to produce your favorite breakfast beverage.

Now that doesnt make alot of sense at first, but I will clarify it a little more:

Corn is made up of 3 parts:
Link To A Diagram (http://www.google.com/imgres?imgurl=http://www.cerealprocess.com/images/corn-components.jpg&imgrefurl=http://www.cerealprocess.com/fractionation.htm&h=342&w=463&sz=79&tbnid=lA5WsMo3uugJ::&tbnh=95&tbnw=128&prev=/images%3Fq%3Dcorn%2Bkernel&hl=en&usg=__gqF2fTZboBFnEiF53G22KlDbLOE=&sa=X&oi=image_result&resnum=2&ct=image&cd=1)
1 Germ(Oil/Protien)
2 Endosperm(Starch)
3 Pericarp(Bran)

For conversion of ethanol only the endosperm(starch) is needed to create it, the rest is not needed and considered a byproduct. That is why it is resold as animal feed because as we all know protein and fat is what animals need to produce muscle and weight!

So in a nutshell a portion of the corn is converted to ethanol, while the rest is resold back to ranchers as feed. Since starch is not needed in the diet of animals, ethanol is removing a piece of the feed from the process utilizing it, and in turn sending back the useful parts. This would have been wasted before, and is now being used to make FUEL.

So lets do some math to see how it directly affects these companies.....
*All figures are assumed for easy math........

Corn is $4 a bushel(56 lbs)
Ethanol is $1.87 Gallon
DDG is $58 Ton

Plant Size 60 Million Gallons A Year Average(Most Plants Are 110MGPY)

Costs:
Uses 21 million Bushels 84,000,000
BTU(energy) Cost Average .27 /gallon 16,200,000
Total: 100,200,000
Sales:
60 Million Gallons 112,200,000
350,000,000 Lbs Of DDG 10,150,000
Total: 122,350,000
Profit: 22,150,000
Quarterly: 5,537,500

*I do not account for Employee Pay, Breakdowns,Government Subsidies Or other costs due to oversimplification.

These figures are very 1 sided, in fact most ethanol companies in 2004-2005 made enough money in 3 quarters to pay off thier entire construction costs of roughly 80 Million each. Then again corn was around $2 then too.

Another important note:
In the last 8 months the price of corn has sky rocketed due to speculation in the commodities market. Causing major headaches in all ethanol producers pocket books, this was a fluke just like $130+/barrel oil! 3rd quarter 2008 posted huge losses, but 4th quarter will not. I am not saying a profit in 4th quarter 08, but at current prices..........Yep...........

Allright thats about all i want to write today, again any ?'s or comments I would be glad to answer............

drozhenbane

10-26-2008, 10:20 AM

If anyone is interested I can explain how ethanol companies in 1-2 years will be able to turn trash to gold.........

and also, pending which person gets to rule this country will also have a direct and profound impact on ethanol in general......

missionsman1

10-26-2008, 06:03 PM

Great post drozhenbane! Yes , tell me how?
I see us going to celulose for fuel also. Grass clippings into fuel.

BadThad

10-27-2008, 09:22 AM

Thanks for the info drozhenbane! :)

drozhenbane

10-27-2008, 09:29 AM

Yes and no, cellulosic ethanol is what current R&D is focusing on due to a grant offered by the US government. The first commercial scale celo* (I'm gonna abbreviate to save me typing time) plant is supposed to be up and running by 2009. you refer to grass clippings as what they would use as their feedstock. That is only the tip of the iceburg here's a short list all can be made into celo ethanol:

Wood Chips
Grasses
Corn Stalks
Corn Cobs *Current favorite due to its availability
Straw
Algae
Sorghum

Pretty much any left over plant material that is not harvested or otherwise wasted in agriculture/industry.

The biggest hurdle to celo ethanol is unlocking the starch from these sources. Several companies have developed different techniques to do this. The chinese currently pre-treat rice straw with Sodium Hydroxide to further expose the starch. Another company has developed an enzyme that deals with lignen which fills the spaces of plant cell walls thus exposing the starch for conversion. Another company in arizona has found that a specific sea water algae can be farmed and converted easily as well. Another company is currently researching a chemical found in the intestines of a beetle that naturally digests lignen with an amazing efficiency. The trick will be isolating and reproducing that chemical.

BTU methane
Feedstocks aside another big thing in ethanol is reducing the amount of BTU's needed to create their product. In Brazil the plants gasify bogasse(Sugar Resin Left Over From Fermentation) to drive huge turbines that produce the plants electricity. They have made this efficient enough not only to sustain their power needs, but also to resell the power to locals. In Brazil they do not have the electrical supply grid the US has thanks to local Rural Electric Cooperatives that built our infrastructure.

Currently U.S. plants are experimenting with reducing, and in some cases removing natural gas to power their plants. Some have tapped into "Waste Boilers" these standard boilers produce steam by burning left over wood waste from lumber mills and wood working plants. Others are using the Fractionization(More on this later) process to gasify the outer shell of the corn kernel to produce the fuel needed to sustain their boilers. Others have signed agreements with local land fills to tap Methane gas from old trash dumps to fuel their boilers.

Self Sustained Ethanol Plants
I know of only 1 plant right now, but im sure if they prove it can be done many will follow suit. This is referred to as closed loop ethanol production. The idea is pretty simple, only 2 things enter the plant(Water, Corn), and only 2 things leave the plant (ethanol, beef). Basically there is an ethanol plant, it makes the ethanol and feed. There is also a large feedlot of several thousand head of cattle attached to it, in turn eating the feed produced by the plant. In turn they create manure, which is then put into a fermenter and methane gas is created from the waste. The methane provides the gas for the boilers, and everything runs in unison of each other in a closed loop. The plant makes money off the ethanol and beef produced on site.

Ok so thats the tip of the iceburg so far......... Any questions?

BadThad

10-28-2008, 11:05 AM

Another great post! Thanks!

BadThad

10-28-2008, 03:45 PM

WOW! VSE up 60% in market rally today!

BadThad

10-29-2008, 02:25 PM

HUGE drop over 30% today...down to 0.73! 8-|

I'm buying it at 0.70!

BadThad

10-29-2008, 02:59 PM

Dangit!

VeraSun falls on report bankruptcy filing imminent: Financial News - Yahoo! Finance (http://biz.yahoo.com/ap/081029/verasun_mover.html)

drozhenbane

10-31-2008, 09:09 AM

That's the rumor, but doesn't answer why someone last month filed with the SEC that they had a 10% stake in the company. There are rumors flying around this part of the country of a possible buy out. There are only 1 ethanol producer that has enough market grip to make such a purchase...

Archer Daniels Midland(ADM)

Its just leaves a big gap in the story, the rumor hasnt been confirmed by anyone in VSE management. Im not saying its not possible, but they fired the former CEO a few months back and replaced him with a Chairmen of the board. Not to mention 1 quarter loss, granted a big loss, I don't really see as the iceburg that sunk the titanic.

I may be wrong, but I dont think the company is really in that big of trouble. My gut tells me there's a BS flag that needs to be thrown here, and its seems the MM's might have a hand in it. Not to mention the ethanol industry is heavily subsidized by the US government.

I will do some scrounging and find the name of the company that filed its 10% stake.
Inveso is the name...
Link to story here (http://www.argusleader.com/apps/pbcs.dll/article?AID=/20081015/BUSINESS/810150335/1003)
Thats from the Sioux Falls Argus Leader(Major Newspaper for SF)
All I can say of the recent markets is best said by a quote from 300
"THIS IS MADNESS!"
Either way....
In again @ .56!

BadThad

10-31-2008, 01:26 PM

Thanks for the info bro, I appreciate your insight. I'm rolling the dice and buying some. If there's a buyout or the rumor is BS, the stock will ROCKET. If they go under...oh well...add to my losses column. LOL

chrsb

10-31-2008, 05:17 PM

UPDATE 1-Ethanol maker VeraSun preparing for bankruptcy-WSJ | Markets | Markets News | Reuters (http://www.reuters.com/article/marketsNews/idINN3137273720081031?rpc=44)

Evil-Eye

11-01-2008, 05:10 AM

I saw this on an alert for post market low. .33? O :-)

Aufan 1983

11-01-2008, 11:03 AM

VeraSun Energy Corp., one of the nation's largest ethanol producers announced late Friday that it is filing for Chapter 11 bankruptcy protection.

Associated Press
Lost Power: A VeraSun Energy plant near Aurora, S.D.
VeraSun, which is based in Sioux Falls, S.D., avidly rode investor enthusiasm for ethanol, a corn-based product typically mixed with gasoline. But from an initial public offering in 2006, company shares have generally pushed downward, changing hands at 48 cents a share in 4 p.m. composite trading Friday on the New York Stock Exchange, well off the stock's 52-week-high of $17.75.

The company says it expects to continue normal operations and pay its workers regular salaries while it reorganizes. According to a company news release "the filing was precipitated by a series of events that led to a contraction in VeraSun's liquidity, impairing its ability to operate its business and invest in production facilities."

"Worsening capital market conditions and a tightening of trade credit resulted in severe constraints on the Company's liquidity position," the company said. It intends to work with lenders to secure "additional committed financing to provide adequate liquidity to fund operations in the normal course."

VeraSun also says it expects to continue purchasing raw materials, like corn, and continue to pay suppliers.

"Today's filing allows VeraSun to address its short-term liquidity constraints as we navigate historically challenging market conditions while we focus on restructuring to address the company's long-term future," said company Chief Executive Don Endres. "We appreciate the loyalty of our employees, customers and suppliers during this challenging time."

Ethanol production has more than doubled since 2005, spurred largely by the federal Energy Policy Act, which requires oil companies to use billions of gallons of renewable fuels every year. Import tariffs have also kept cheaper foreign ethanol at bay.

This package of incentives created instant demand for ethanol, as Wall Street poured money into the Corn Belt to finance plant construction.

But VeraSun has been unable to withstand moves in the wider commodity markets. In recent months ethanol prices have dropped along with oil prices. That has cut into profit margins, which have been a constant source of pressure for the industry.

Farming has been a bright spot for the economy over the past 24 months, partly because increased demand for ethanol pushed up corn prices. But as grain prices have increased, so have the costs to raise a crop.

This summer, record-high corn prices sent VeraSun and other ethanol producers into panic mode. In an effort to protect itself from rising corn prices, VeraSun locked in agreements to purchase corn at $6.75 to $7.00 a bushel, while the price on corn futures sank to $4 a bushel.

"There had been a de-linking of corn and ethanol where the price of corn shot way up but ethanol did not," said Chris DiMauro, managing director with the investment-banking firm of Houlihan Lokey Howard & Zukin.

In September, VeraSun said it had lost $63 million to $103 million due to bets on the price of corn that ended up working against it. VeraSun's current liabilities totaled $312 million at the end of the second quarter, and it had $1.4 billion in long-term debt.

As the global credit crunch intensified in September, VeraSun was unable to secure the funding it needed to pay interest on its debt, which is due in December.

Pinched to pay its debts, VeraSun recently hired Skadden, Arps, Slate, Meagher & Flom LLC as bankruptcy counsel, and financial adviser Rothschild Inc. to help craft a reorganization plan, people familiar with the matter said. It has also secured $250 million in debtor-in-possession financing from Ableco, an arm of New York-based hedge fund Cerberus Capital Management LP, at a high interest rate of about 14% to 15%, people familiar with the terms said.

Company creditors already have convened a committee to hammer out a potential restructuring, according to one VeraSun bondholder. A majority of creditors have to approve a restructuring deal for VeraSun to receive court approval for a prepackaged bankruptcy.

So far, investor interest in VeraSun has been limited. One reason for that is that financial backing for mergers and acquisitions is limited as a result of the credit crisis.

"You would expect there would be capital available to create concentration" in the ethanol industry, said Todd Alexander, a partner at New York law firm Chadbourne & Parke LLP. "But that's just not happening."

chrsb

11-01-2008, 11:46 AM

Thad,

There goes my coin show money, lol.

BadThad

11-02-2008, 02:30 AM

Dangit! Oh well, I knew the risk going in.

Thanks AUfan for posting.

BadThad

11-03-2008, 09:32 AM

WHEW...not a total loss, sold out this morning for 0.24!

chrsb

11-03-2008, 10:02 AM

I can not get out of it, must be halted

BadThad

11-03-2008, 10:43 AM

I can not get out of it, must be halted

Damn! I put my sell order in before market open to sell at market....got lucky!

BadThad

11-03-2008, 10:55 AM

Sum btches! They put the shares back into my account! :-|| How the hell can they do that!? ARRRRGGGGG

BadThad

11-03-2008, 11:46 AM

Latest:

NEW YORK, Nov 3 (Reuters) - Bankrupt ethanol maker VeraSun Energy Corp (VSE.N: Quote, Profile, Research, Stock Buzz) will seek court approval to "prime" existing lenders for up to $190 million in debtor-in-possession financing, according to court documents filed on Monday.

The company, which filed for bankruptcy protection from creditors on Friday, said it could not get financing in the form of unsecured credit or unsecured debt with administrative priority, which is the typical way companies fund themselves during bankruptcy.

Instead, the company said it was seeking court approval for secured noteholders to provide up to $25 million of interim DIP financing, and up to $190 million in final DIP financing, according to the documents.

Without approval of the funds, VeraSun said it would be forced to discontinue operations and shut down.

It asked the U.S. bankruptcy court in Delaware to hear its motions on financing at an emergency hearing on Monday.

BadThad

11-03-2008, 03:48 PM

Trading resumed.....VSUNQ....unloaded at 0.22 for a small loss.

WeatherCat

11-04-2008, 08:50 AM

BIG NEWS OUT THIS MORNING...

VeraSun Energy gets $215M financing commitment
Tuesday November 4, 7:55 am ET
VeraSun Energy gets $215 million financing commitment after Chapter 11 filing

SIOUX FALLS, S.D. (AP) -- Ethanol producer VeraSun Energy Corp. said Monday it received commitments for up to $215 million in debtor-in-possession financing to pay bills after filing for Chapter 11 bankruptcy protection last weekend.
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AgStar Financial Services, based in Mankato, Minn., is posting the funds, in addition to certain holders of VeraSun's secured notes.

A judge said VeraSun can borrow up to $40 million from the financing to keep its doors open. The company is in negotiations with other lenders to get a total of $250 million in financing.

In its Delaware court filing, VeraSun said it would not be able to make this week's payroll without help. The company said it also needed money to buy corn, natural gas, pay for leases and other costs.

"The relief granted by the court (Monday) will allow us to focus on our operations and, at the same time, provide VeraSun with the liquidity and ability to continue operations, which means producing ethanol and distillers grains, paying suppliers, and satisfying customer needs for product," Chief Executive Officer Don Endres said in a statement.

Shares of VeraSun have traded between 21 cents and $17.75 in the past 52 weeks.

BadThad

11-04-2008, 09:23 AM

Big for them, but too late for investors. I recommend you stay far, far away from this stock. Remember, when they emerge from BR the shares will be cancelled.

chrsb

11-04-2008, 12:25 PM

I finally got out, was out yesterday afternoon, then they put them back, I sold again today lets see if they put them back again, its the stock that just will not go away!

drozhenbane

01-09-2009, 09:19 AM

Sorry for the silence gents, the holidays have halted my trading practices, but now they are done with, and I can resume.
Bad and chrsb glad you guys got to unload before the bottom fell out.

The regional info I have at my disposal at the moment......

But before that, thad can you explain to me why the shares are going to be cancelled after the bankruptcy is over? Not trying to start anything, just feeling like I missed something. Please enlighten me.

Ok around the cornbelt, this is what I have tried to confirm amung rumors. I cannot confirm any of this, so take it as hear say if needed. I sifted through as much as I could, and tried to confirm stories with local media, and proffessional sources. So I am not trying to lead lambs to a slaughter just trying to shed light on the entire situation. For the record I am at a huge loss on this one as well, and I am still holding my position.

The filing was brought on by a terrible business decision to hedge the corn market. It was a huge risk, and they paid for it dearly. Remember how I said that ethanol only accounted for a fraction of thier revenues. Thier meaning a typical ethanol plant. They recoup a bulk of the purchase price of the feedstock through the resale of the feed they produce while using ethanol as a byproduct, not a core product. So in the CEO's defense he obviously made the best business decision that seemed reasonable at the time. Some analysts predicted 9-10 a bushel corn. So hedging it at 6-7 made sense. This idea would have worked if prices remained high. We now know this wasnt the case, but if it had stayed high, they could have recouped the bulk of thier costs by selling the feed at elevated prices. Since this didnt happen, they looked at $4 corn with I would imagine was the end of days feeling. Bankrupt was the only option for them to shed those toxic contracts. Yes the courts agreed, and allowed them to scape them. They were a profitable company before the bad decision, and if given the same conditions could remain so.

Now this is not aside from ramifications. Are the same producers that signed the contract for a higher price going to continue thier patronage to them? I am sure there will be some distrust, and contracts may be difficult to gain. Then again Supply and Demand will reign supreme. Considering most ethanol producers pay more than elevators for thier corn. They may not like it, but producers will eventually faulter to the bottom line.

It is not unreasonable to assume that they will shake the toxic contracts, and resume business as usual. We also have to consider another variant to the equation......

The Obama era, Obama is a very pro bio fuels president elect. He chose for his cabinet a Noble Prize Recipient in no less......BIOFUELS...... The biofuels industry is already, and will continue for the next 4 years to be heavily subsidized by the good ole Uncle Sam.

Another snipet......
Verasun has recieved unsolicited offers for buyout...... So far from what I have seen it could be 2 key players. One is an Oil Giant, and the Other is a biofuels company. There are alot of rumors! Which one it may be your guess is as good as mine.

What I do know is some of verasuns plants are resuming production. They are stockpiling corn, and hitting the ON button. These plants had since been shutdown, and employees layed off. Are now supposedly returning to work, under thier current name. Whether or not they will be bought, or will resume business as usual I cant say for sure.

An a side note, there are other ethanol plants that can be invested in....... Whether you choose this one or another. Bill Gates does have his hand in ethanol as well.

Pacific Ethanol

Do your own DD!
Happy Trading