Ring in the new year with more stocks for 2008.
Boy, did ethanol have a bad year. Industry players like VeraSun Energy
But it's a new year, and I think 2008 will be much kinder to ethanol and other biofuels. That, of course, implies a strong year for Archer Daniels Midland
The new U.S. energy bill, which is not particularly ambitious, still provides some nice industry visibility. (Contrast this to the solar industry, which faces regulatory uncertainty thanks to expiring tax incentives in 2008.) Biofuels, in particular, got a nice boost, and ADM's joint ventures with the likes of ConocoPhillips
The story goes far beyond the U.S., of course. In 2007, ADM took a stake in Wilmar International, Asia's leading agricultural processor. This palm oil producer feeds Europe's booming demand for biofuels. A bit closer to home, there's also the giant Brazilian biofuels market, where many industry observers expect ADM to make some kind of move. The presence of Petrobras
Finally, even if I'm dead wrong and the ethanol producers take another pasting in '08, ADM still comes out ahead, in my view. The company has many other profitable lines of business, and it is well-financed. If smaller players like Pacific Ethanol
If you agree that ADM is about to ascend, aim your browser over to Motley Fool CAPS, and rate the stock "outperform." We'll be tallying your votes, and may the best business, biofuels or otherwise, win. Tally ho!