Julie’s Fresh Air

Goldman Sachs Group Inc.’s analysts abandoned coverage of the ethanol industry today after VeraSun Energy Inc., the largest publicly traded U.S. ethanol maker, filed for Chapter 11 bankruptcy protection. 

Goldman analysts cited Brookings, South Dakota-based VeraSun’s Oct. 31 bankruptcy filing and the plunge in market valuations for other distillers as the reasons for dropping coverage of the industry, according to a note distributed to clients.

 We continue to believe the outlook for ethanol producers is challenged,” the analysts said in the note. “We believe this weak margin environment, coupled with the financial difficulties of producers, will keep downward pressure on ethanol shares.” 

Source: Bloomberg

• Posted in : General
• Author : freshair