Is Green Plains Outta Gas?
Cramer’s never been a big fan of the ethanol stocks, but he was willing to recommend Green Plains Renewable Energy on one catalyst: an Environmental Protection Agency’s mandate that boosts the amount of this biofuel in a gasoline blend.
Sure enough, it happened. The EPA called for a 5 percentage point increase of ethanol in the blend, to 15 percent from 10 percent, for vehicles made after 2007. A decision has yet to be made for cars made between 2001 and 2006, but that hasn’t gotten in the way of Green Plains’ rally off the news.
The water in the gas tank here—the urban legend about sugar is wrong—is that GPRE gave up that 48-percent rally when it issued a convertible bond.
Still, Cramer thinks there’s room left for this one to run, especially with the EPA’s pro-ethanol stance. And the chart for the stock portends a potential breakout, too. But before making the call, he wanted to check in with Green Plains CEO Todd Becker. Watch the video for the full interview.
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