Why You're Smart to Buy This Under-the-Radar Stock
The American Corn Belt is home to some of the most productive agricultural land in the world. Last year nearly 87 million acres were mobilized to make possible the production of over 15 billion bushels of corn. Few things are more predictable than Uncle Sam's dominance come harvest time. Except, perhaps, Wall Street's pessimism over renewable-fuel markets.
Concerned by political (and therefore regulatory) uncertainty surrounding the present and future state of corn ethanol, Wall Street has sent shares of Green Plains (NASDAQ: GPRE) to 52-week lows. The pessimism may have made sense in the early days of the industry, but let's be clear: The ethanol industry isn't going anywhere.
Today, it's a nearly 16-billion-gallon-per-year juggernaut. Growing global demand for renewable fuels makes ethanol one of America's best exports -- with over 1 billion gallons leaving our shores last year. And with plenty of spare capacity and a glut of corn, smart policy could increase production and export volumes handsomely.
Source: Fool.com
