Opinion on  Pacific Ethanol Inc (PEIX)     Sector: Basic Materials  >  Industry: Chemical Manufacturing
Losing Steam

There have long been critics of ethanol with good reasons it can't and won't replace oil.  But they've been a quieter, fringe group.  That is, they've been fringe until recently, when it seems like everyone is coming to terms the idea that ethanol is probably  not viable for a number of reasons (inefficient, input prices, impact on food supply and tillable land, addiction to taxpayer subsidies, etc.).  I hold out some hope that ethanol will be good for the environment and our political situation, and I'll revisit the stock if it drops down to about $10.  But I suspect ethanol will turn out to be a lot like Communism--looks good on paper, but it can't stand on it's own in practice.