Recently Bill Gates, through his investment vehicle Cascade Investments, took a 25.5% stake in Ethanol producer Pacific ethanol. When someone like Gates takes this large of stake in a company, people take notice. For good reason to, Ethanol use is expected to double by the year 2012.
This helps other Ethanol plants look more attractive as Investors are beginning to see the demand for Ethanol soar. Stratos Renewables Corp. (SRNW.OB) is a Peruvian based Sugarcane Ethanol producer that intends to export its ethanol globally. They say that sugarcane Ethanol produced in Peru is the lowest costing ethanol in the world. This is due to the extremely favorable conditions in the Peruvian desert.
Stratos is in the early stages of growth and currently trades between $1.00 and $2.00, offering Investors a bargain since the current Book Value is around $1.60. It gives investors the opportunity to acquire a sizable position for a small investment. As Ethanol demand rises, the company’s stock could have investors realizing above average returns as the Industry itself is expected to grow at a higher than average rate.
Stratos Renewables Corp. is currently completing an expansion on their existing facility and has initiated a multi-phase growth strategy to become the leader of ethanol production in Peru. Peruvian agrarian experts as well as Bio-Fuel executives founded the sugarcane-based ethanol company.
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