SOURCE: Paragon Financial Limited

Paragon Financial Limited

November 03, 2011 08:16 ET

Pacific Ethanol and BioFuel Energy Set for Bright Futures

The Paragon Report Provides Equity Research on Pacific Ethanol & BioFuel Energy

NEW YORK, NY--(Marketwire - Nov 3, 2011) - Ethanol stocks have gone on a significant run in recent weeks. Contrary to popular wisdom, ethanol prices are more closely tied to the price of gasoline than to corn prices. With gas prices remaining high, and corn prices dropping in recent weeks, ethanol producers are showing strong margins. The Paragon Report examines the outlook for companies in the Ethanol Industry and provides investment research on Pacific Ethanol Corporation (NASDAQ: PEIX) & BioFuel Energy Corporation (NASDAQ: BIOF). Access to the full company reports can be found at:

Reuters recently reported that strong margins have added incentives for greater production, and margins are seen remaining healthy until the end of this year at least, though they are expected to narrow after the fourth quarter.

The mandated level of ethanol in gasoline moves from 12.6 billion gallons in 2011 to 13.2 billion gallons in 2012, growing up to 15 billion gallons in 2015. Ethanol can be used in much higher proportions, with up to 85 percent ethanol in special factory-produced vehicles. A growing number of these vehicles are being produced by auto manufacturers to test market demand for such a vehicle.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Ethanol industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

The ethanol market is not without detractors. This is becoming clearer as Republican 2012 Presidential candidates outline their platforms. Four out of the five candidates who attended a manufacturing forum Tuesday in Pella Iowa say it is time to phase out subsidies for the fuel, saying the federal government should not be in the business of supporting one energy source over another. Michele Bachmann, Rick Santorum and Ron Paul also said they oppose ethanol subsidies. Only Newt Gingrich backed federal support for ethanol, noting that he voted for the subsidies in Congress in 1984.

The favorable US governmental policies that promote corn being used by US-based ethanol plants have sent corn demand surging, leading many analysts to argue that ethanol is partially responsible for the higher corn prices.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at