frenchee
17 년 전
VeraSun's profit plunges as revenue mushrooms
By Steve Gelsi, MarketWatch
Last update: 4:36 p.m. EDT March 12, 2008
NEW YORK (MarketWatch) -- VeraSun Energy Corp.'s fourth-quarter net profit fell 81% in the face of lower ethanol prices, capacity expansion and higher corn costs, even as revenue more than doubled, the biofuels maker reported Wednesday.
The Brookings, S.D.-based company (VSEverasun energy corp com
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VSE) said income dropped to $4 million, or 4 cents a share, down from $21.4 million, or 27 cents, earned in the year-earlier fourth quarter. Shares outstanding rose 18% to 95 million.
Quarterly revenue skyrocketed, reaching $312.3 million from the prior year's $146.5 million.
Analysts surveyed by Thomson Financial had forecast a loss of 3 cents a share as well as revenue of $298 million, on average.
Shares of VeraSun rose 4.2% to close at $6.96 on Wednesday.
In the final three months of 2007, the company sold 134.4 million gallons of ethanol, more than twice the amount sold a year earlier, but the price per gallon dropped 14%, to $1.87 a gallon from $2.17 a gallon, VeraSun said.
Corn prices in the fourth quarter averaged $3.81 a bushel, up from $3.23 a bushel, according to market sources.
The company markets E85, a blend of 85% ethanol and 15% gasoline for use in flexible-fuel vehicles, to fuel retailers.
Ethanol production increased by 82.5 million gallons, or 138%, as a result of capacity added via three new plants in the past year, the company said.
Aside from the three plants opened during 2007, VeraSun noted that it's kicked off construction on facilities in Welcome, Minn., and Hartley, Iowa, and expects to begin start-up operations at both plants by the end of the second quarter. In addition, the company expects to start up its Bloomingburg, Ohio, plant by the end of the first quarter.
Under new Renewable Fuels Standards passed by Congress, the content of U.S. gasoline will carry a larger percentage of ethanol in a move to reduce dependence on imported oil.
Against this backdrop, VeraSun announced plans last year to buy US Bioenergy in a move to extend its lead over Archer Daniels Midland ( as the largest ethanol producer in the U.S.
The merger has received a regulatory OK and is expected to close by the end of the month.
US Bioenergy announced Tuesday that production has begun from its Marion, S.D., facility.
Getitgogone
18 년 전
The shorts apparently believe USBE to be undervalued as well
Only 330,400 for the month of March a mere 2.5% of float
However,I'm not sure what the float is.I haven't found that number yet,it's not listed on any of the normal websites we travel for stock information
330,000 is not much on the short side
Don't expect a short squeeze but rather a rise in PPS based on fundametals of the company,increasing revenues,increasing Growth or expansion,refining of their costs of goods ,etc.
http://www.shortsqueeze.com/index.php?symbol=usbe
http://www.nasdaq.com/asp/quotes_full.asp?mode=&kind=shortint&symbol=USBE&FormType=&...
Getitgogone
18 년 전
In regards to action on friday.....Incredible manipulation downward last 15 minutes.
Someone dumped 247,000 shares right at closing bell and dropped the price from 11.75 to 11.47
Piper Jaffray Upgraded the day before Earnings to OUTPERFORM with a $15.75 price target and they tank the stock?
The earnings were Great;I think people are confused because they IPO'd in December,full revenues are not reflected in the 10K,when they saw .41 for full year they freaked out,coupled with it being Friday,(daytraders left the building).
Keep in mind if you multiply out .35 4th quarter x 4 That's about 1.40 a year ,,however,I believe as they bring more on line that number will grow rapidly.Technically the P/E on this is more like 8 or 9 Instead of the 29 Shown on different websites.IT'S WAY UNDERVALUED.
IMO there is no reason this stock shouldn't be trading as high as PEIX or the other Ethanol Amigos.PEIX is still loosing money EPS,although decreasing losses,as they ramp up and are Trading at 17.00.AVR is sporting a P/E of about 13,VSE HAS p/e OF 19.29 (INSERT SURPRISED SMILEY HERE)VSE EPS WAS 1.03.
Just for Shlts and giggles ,let's say true EPS for USBE is 1.00 for yr. Which IMO is too low(1.40 seems more reasonable),but figure 1.00 anyway ,split the dif. between AVR P/E and VSE P/E 13.11 and 19.29,which gives a P/E of 16.2 Which is 16.20 a share for USBE.
I can see where Piper is getting the 15.75 and I think they are still undervaluing.
Looking into the future is what this stock is about.Placing the value on it into the future ramping up production ,as they come on line ,earnings will start to ramp with them.
Since stocks are valued on "future earnings" expect this to start heading North,and frankly should already be there,but hey the market is stupid sometimes,which creates opportunities.
I think Friday was BS and Monday it should head north after everyone has had a chance to understand more about the earnings call over the weeekend.
Record revenues,record earnings,growth stock!
Corn is coming down in price,oil is going up!
The company seems to be poised for more Acquisitions and/or developments of their own production facilites.
I also expect more upgrades coming from other ANAL-LYSTS UPGRADES HERE >>>>
http://www.briefing.com/Investor/Public/Calendars/UpgradesDowngrades.htm
The company sounded a little COY on some of the questions on the conf. call,but I expect that is due to the competition and they don't want to tip their hand on any "other" plans they might have in the works.The market is becoming highly competitive.
HayyyyyyyoooooooBBBBB!
Getitgogone
18 년 전
I created this board primarily for discussion of USBE "US BIOENERGY CORPORATION";I have been unable to find any other boards out there in cyberspace discussing specifically USBE.
I may be either buying,holding or selling USBE in the future.
Please post to the board even if you see no activity here,you would be surprised how many just stop in to read and never make a single post.I will be posting from time to time.
In other words if you have something to say ,then say it.
The board will be unmoderated,so I expect to see some bashing by shortie,as expected.
Difference of opinion is what generates a good discussion board so bring it on.
Good luck on your trading ventures
:)