Ethanol: Live Fast, Die Young, Take Profits

The only place they ever really implemented ethanol as fuel was in Brazil, but that was all about making money for the sugar-cane industry. There were maybe five families of rancheros who I think practically owned the Brazilian government, the way our government is of, by and for the corporations, and they wanted to make more money off sugar cane, so they made Brazilian autos run on ethanol, which can be made from sugar.

Our corporate oligarchy operates a little bit differently in America. We're more fickle, so the ethanol stocks are going down. I've got nothing against VeraSun; it's a great company with great growth, but that's just not the point.

All these stocks -- ADM, The Andersons, even Pacific Ethanol(PEIX) -- they're not bad companies. But they're about to stop being hot for good, and the selloff we've had in these last three weeks does not represent a buying opportunity.

Bottom line: When you've got corn out in front of the NYSE, you know that ethanol's become too celebrated and too speculated on to make you more money. It's time to get out of Dodge with ethanol. Sell into strength today, so you won't have to sell into weakness in maybe a week, or a month, but not much longer than that.

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