VeraSun IPO news

This is a very attractive industry, and VSE will be the only “pure play” (at least for the next few weeks) since companies like ADM (the market leader in the US ethanol market) are divirsified. Anyway, this is a profitable company in an attractive industry so everything’s good, right? Well except for the high debt. Anyway, we’ve got articles from Motley Fool (they warn that the industry and its companies are in flux), BusinessWeek (here we learn that the cost of their new plant is estimated to be 280 million – more than the 190 they are expected to raise from the IPO – meaning that this company will be further in debt soon), and many others.

One Response to “VeraSun IPO news”

  1. Charles says:

    The companies have worthy returns and debt repaying capacity, so even if they are under huge debts, hardly matters.