Obviously the price of oil, which is dropping, would have an impact on ethanol companies.
Continue to read and study what the analysts are saying. In ten years or so, you will realize predicting stock movement is "difficult, if not impossible".
By the way, if you notice, the stock pickers, Cramer, Payne, et al, pick 3 or 4 stocks weekly. When they report that 2 or 3 of their "picks" have gone up 25% they don't report that 10 or 12 of their picks have gone down 25% (or a lot more).
Falling price of crude oil dragging on them?
Read "How I made 2,000,000 in the stock market". Hopefully, very enlightening.
So a quick understanding on how the market works. I’m new to stocks and I’m trying to absorb as much information on what makes the market tick. I would like to have an opinion on my current positions.
I’ve been following two companies who primary trade is production of ethanol, one in west US and one in the Midwest. When September rolled around, both stocks started to plummet from their highs at a rapid pace averaging about 5% a day.
The supply of corn (which is used to make ethanol) was at its greatest in four years thereby dropping the price. In turn, there was a large ethanol supply as well causing the prices to drop. Finally the future prices of ethanol have been on a rebound in the last week but both stocks continue to drop. Any ideas why or is it because people just want out after a 60% drop in one month? No recent news have come out from either companies
