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JBL: Defending Ethanol

Stock quotes in this article: XNL , PEIX , VSE , ADM , GE , ZOLT , FPL  

As much as I love and respect my friend Jim Cramer, I have to disagree with his view that ethanol is a fad. I agree some companies are overvalued, but I don’t believe that ethanol itself is a fad.

Jim is right, as he normally is, about solar. Solar is a renewable energy whose cost will actually increase in the next couple of years due to capacity constraints in polysilicon. Solar is not and will not, at least for the foreseeable future, be an economical alternative (without huge subsidies) to other sources of energy.

But ethanol is not a fad. Ethanol is not a dot-com. I believe the trend is real; the only question is which horse to ride. ...

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