Aventine Renewable Energy Holdings Inc. (AVR) Is an Ethanol Business Leader
There can be more to a stock price plunge than meets the eye. This stock is an example of market over-reaction to a transient liquidity issue that has made the Price to Equity Ratio extraordinarily attractive. The company is at the vanguard of the ethanol business in the United States. Almost 10% of revenue comes from other value-added products from corn. These include important processed food and animal feed ingredients. The business therefore has entries in high growth areas of the economy. The stock has approached the 52-week low of $4.66 during the second half of March 2008. The primary…