SOURCE: Paragon Financial Limited

Paragon Financial Limited

November 30, 2011 08:16 ET

Shares of Pacific Ethanol and BioFuel Energy Cool Off as Margin Worries Grow

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

NEW YORK, NY--(Marketwire - Nov 30, 2011) - Ethanol stocks have come back down to earth to close out November. While ethanol demand continues to skyrocket, investors are concerned about the effects of the 45-cent-per-gallon tax credit that the ethanol industry gets for blending ethanol into gasoline expiring in December. 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:

Ethanol producers will lose about 25 to 30 cents per gallon on operating profits when the tax credit for blenders goes away next year. In addition, there is a proposal in Congress to reduce the amount of ethanol required by the Renewable Fuel Standard when corn supplies are tight in order to ensure ample supplies of feed corn.

Four out of the five GOP Presidential candidates who attended a manufacturing forum in Pella Iowa argued 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.

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.

Pacific Ethanol, Inc. produces and markets low carbon renewable fuels in the western United States, primarily in California, Nevada, Arizona, Oregon, Colorado, Idaho, and Washington. The company sells ethanol to gasoline refining and distribution companies, and wet distillers grains to dairy operators and animal feed distributors. Shares of the company skyrocket earlier this month following the company's announcement that it retired in full its $35 million senior convertible notes.

BioFuel Energy produces and sells ethanol and related products through its two ethanol production facilities located in Wood River, Nebraska and Fairmont, Minnesota. Earlier this month the company announced that for the quarter ended September 30, 2011, it generated $2.5 million of net income, and $.02 of earnings per diluted share, on revenues of $162.5 million.

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