Friday, November 30, 2007

2 Ethanol Giants merge

As most of you probably know Verasun acquired US bioenergy in a stock transfer... What does that mean? It means that Verasun will not buy out the shares then issue new ones they will just transfer since us bioenergy (usbe) was trading at about 70% of Verasun (VSE) they decided on 81% transfer it means that if you have 1000 shares of USBE you now have 810 shares of Verasun but all in all its a good move for them.... By 2009 all there plants will be finished and they will be able to ship ethanol out faster then most plants will be able to produce it.... In the next 6 fiscal quarters I would expect a lot of acquisitions by the "Big Three" in Poet, ADM, and The New Verasun.... Personally I like this move or maybe its because my shares of USBE are now VSE and are going up fast..... Wouldn't be surprised if this stock skyrocketed to 30-50 dollars with usual dividends in 2-5 years....

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