Pacific Ethanol

PEIX



good link to ethanol production

News says Bill Gates is buying this company

3.5 times more cash than debt.
Revenues = $555,000
Market cap = $309 million.

Archer Daniels Midland is a major obstacle. So is Cargill (giants). Both are known to have influence on price and politics. Also, Land-O-Lakes makes ethanol from cheese whey.

(ADM stock price)


ADM describes ethanol business

Dept of Energy on Ethanol

Ethanol comes from corn or soybeans, which are mostly used for feed ( corn is about 80%). So the price of ethanol will likely be a balance between feed prices and gas. I do not favor biofuels longterm....They will one day compete for food resources, and affect water supplies and unsustainable farming with high levels of chemicals.

However, some places in the northwest use wood or brewery waste to make ethanol.

In the short term, ethanol is already being used in gas since it can be cheaper. It can also lower gas prices because it is a cleaning agent, a replacement for other additives to make gas meet emissions requirements.

PS
ADM is on my not cool list for price fixing .

Platinum is Forever

Platinum made the news today as spot prices lept over $1000. The price was under $800 in June '04 but was over $1000 in the 80's.

Platinum, is a rare metal traded on the NY Merc . It is very difficult to trade, because of the complex processes of puts and spreads.

I was interested in platinum when I found out they were used in fuel cells .

That is also when I found out Johnson Matthey ( JMAT.L ) , a big chemicals company, had an interest in fuel cells.

Hydrogen and oxygen gas mixtures explode in the presence of platinum wire...

it is a byproduct of nickel. Platinum production is used for electronics ( almost half is for jewelry and other cosmetic wear). The biggest electronic use now is for catalytic converters in cars. It is also used in dentistry....forggettabout gold teeth man.

Factoid: melts at 1772 degrees centigrade

Quiksilver

ZQK

Quiksilver, not quicksilver (no c). $12.35 on 11/23/05.

This company is well known. One of it's biggest team surfers/riders Is Kelly Slater. He recently won another world championship. Go Kelly... Tear it up....

The Quiksilver snowboard team includes Todd Richards , who was 16th the first olympic snowboarding halfpipe contest, and 1st in the 2001 slopestyle.

For the girls, there is Roxy .
I love a surfer girl, and Roxy works for good birthday and Christmas gifts. For the boarders, Rossignol is their subsidiary, but I think it's clear private Burton Snowboards has it locked up. Other subs: Dynastar, Cleveland Golf clubs, Gnu (I like Gnu boards)

The company is also champ in my eyes. They got a little backhanded the other day by Jim Cramer, but they put shoes on my feet (DC shoes) and baggies on my backside. I think this is the biggest public alternative sport brand besides Billabong, which I think just started public trading on the austailian exchange a year ago.

Billabong Fpo 12.97 AU 11/23/05
 ASX:BBG
 Australian Stock Exchange

Volcom (VLCM) has seen a price jump, but since it is an ipo and brand names are fickle (besides the top dog) I would wait it out for a while.....

The biggest thing that makes me prefer this older company, besides zqk's consitant Kelly Slater performance, is a positive attitude.

The Quiksilver Foundation does it all. Cool Man...

Some Finance: they made $99 million on $1.5 billion in sales.
p/e = 15
They have better than industry ratios and although very cyclical, good growth.

That's it then.

Mr. Warren Buffett

I have recently returned from my trip to Omaha.

Several ECU classmates and I went with Dr. Tibbs to meet with Mr. Buffett.

We had the opportunity to ask questions. The affable Mr. Buffett encouraged all types of questions and often made some funny jokes...which I will not repeat because....well...you had to be there.

He spoke about the growing trade imbalance and value investing. He remarked about the increasing threat of natural disasters from a warming Gulf of Mexico. He also was nice enough to have lunch with us at one of his favorite steak houses....Vegetarian meals available.

Beyond the jokes and amazing ability to refine profound questions into understandable and specific answers....He gave life advice that few people with money seem grounded enough to give. He is a man that loves people.

He spoke about socially responsible investing. He mentioned that he would not buy a whole company with questionable ethics (he regards owning a business as a way to achieve returns over time, rather than incessant trading). His core ideals are easily viewed and understood through the Berkshire Hathaway web site.

Organic Food: Vindicated

Jim Cramer, on CNBC mentioned Whole Foods (WFMI) and Wild Oats Markets (OATS) (I own Wild Oats)

Whole Foods is a great company. I do have some concerns some of their< social resposibilities>, but they run their business very well, with profits, dividends, and growth.

They have management that is very good and business minded. But the leaders also
may not be as socially resposible as your local organic food co-op. They do however, give substantial amounts to fund social projects and are therefore socially resposible. They are just anti union and against high wages. Understandable. You have to make money right?

If you live in a large metro area, there is probably a farmer's market or co-op that is close.
You may have a local market theet is just as good because many grocers are carriying (or may soon carry) organic food as the market demands. Whole Foods management is great when you compare its store's business model to A&P or Kroger or Harris Teeter.


PUBLICS, Harris Teeter, Lowe;s Foods, Kroger...all sell organic foods.

Wild Oats Markets ( est. 1987, Colorado) is much smaller and faces substantial competition from Whole Foods. Whole Foods (est. 1978, Texas) has 170 stores in 3 countries, and has a $9 billion market cap with $2.37 EPS, or $4 billion in revenue. OATS has $1 billion in revenue, $348 million market cap, 10% less quarterly growth, 112 stores, and a stock price with less growth.