VeraSun: Victim of Costly Corn

UBS Investment Research analyst Chris Shaw warns the ethanol producer will have to pay more for corn after the price surge

Investors have been moving away from ethanol producers like VeraSun Energy (VSE) in recent months, as oil prices plummet and some bet the push for alternative fuel will also wane. On Jan. 16, UBS Investment Research analyst Chris L. Shaw pointed out another problem for VeraSun: the rising cost of the corn used to make its product.

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