Ethanol Stocks - BioFuel Energy

As oil price surged to record high of $100 per barrel, the most obvious stock pick are the directly related companies such as the oil drillers.  Since prices of many oil stocks have already been pushed high by speculators, its probably worth while to look at other companies that may benefit from triple digit oil price.  One group of stocks that get benefit from rising oil price are the ethanol producers.  


Biofuel Energy Corp. (Nasdaq: BIOF) owns and operates two ethanol facilities in US and produces 230 million gallons of fuel grade ethanol per year.  For the past three years since the facilities went into production, the company has generated $179 million in revenue in 2008, $415 million in 2009 and $312 million for the first three quarters of 2010.  Since dropped to 52 weeks low of 68 cents per share early February, shares have climbed 40% to 96 cents per share today but is still way below last March's price of $3 per share.  Last year hasn't been pleasant for the ethanol producers but with oil price so high do expect more investors turning their attention to this ethanol producer.