If E85 is used, then at 85% ethanol, the amount of energy contained is 0.85 x .67 + .15 = .57 + .15 = .72 or about 72% of the amount of energy of regular gasoline. For every 10 gallons, this means you will be getting 7.2 gallons worth of 100% gasoline energy. You end up paying more, (10 x cost)/7.2 = 1.39 or 139% the amount you would be paying for an equal amount of gasoline. Where I live, the present cost of gasoline is $3.41/gallon (regular) so if I were to use E85, I would be actually paying $3.41 x 1.39 = $4.74/gallon. If regular gasoline should go up to $5/gallon, my actual cost of E85 gallon equivalent would then be $6.95/gallon. It is a very impractical way for me the consumer to look at fuel prices.

Then, because the actual fuel costs are higher, the cost of all store items must be raised to pay for the increased transport costs. These increased food costs will be in addition to those from the cost of corn and grain being driven due to competition for agricultural land.

E85 makes no sense at all except to those who will be profiting from its sale.

This is my first time hosting or participating in a Blog Carnival (Festival of Stocks).. I just thank God there are no clowns involved. I’m terrified of them. Anyway, on to this week’s interesting submissions from around the blogosphere. Frugal…

If I knew that ADM is announcing its earning the next day, I would have posted this earlier. I don’t follow every of my stocks that much. Always buy them with a longer term view.

IMO, there should still be more upside from this price (well, at least I’m still holding my tiny stake). But I don’t know whether it will pull back temporarily.

Hope you guys also bought into NAT too. It has risen up by 8% too since ML recommended it two weeks ago.

Please do your due diligence always. I want to say that ML & I just got “lucky” this time. Not sure if luck will be there next time.

Heh, how ’bout next time you post a pick you give us a little more time to move on it.

I read your post yesterday and did my bit of analysis on ADM. Result, I bought into the stock yesterday and wow, did the earnings surprise. I am up 11% in a day. Thanks for bringing ADM to my radar screen. What do you think it’s topside could be?

Regards,

Good luck.