Will the busted Chinese IPO parade end with Gushan Environmental Energy
Over the same period, you could have lost half your money in domestic ethanol producer VeraSun Energy
In my recent piece on innovation in biofuels, I noted that most domestic biodiesel producers are getting killed by high soybean oil prices. Things aren't much different in Asia, where palm oil is the juice du jour. While Nova Biosource Fuels
While margins have steadily narrowed over the past few years, Gushan's profitability is still impressive. Compare the firm's 44% annual gross margin to 5% for Aventine Renewable Energy
That said, I'm somewhat cautious about Gushan's earnings stability, because of the Chinese government's recent price-freezing activities. Fuel-price fixes have squeezed the downstream operations of PetroChina
Related Foolishness:
- Investors have recently thanked ethanol players for not growing.
- Consolidation is the name of the game here at home.
- This Brazilian biofuels player has fared well since its quiet debut.