Stocks to Watch – Olin Corporation (NYSE:OLN) Green Plains Inc (NASDAQ:GPRE)
Trading the news is a technique to trade equities, currencies and other financial instruments on the financial markets. Trading news releases can be a noteworthy tool for financial shareholders. Economic news reports often drive strong short-term moves in the markets, which may create trading opportunities for traders. Declarations about corporate profits, a change in administration, rumors of a merger, are events that can cause a company’s share price to move wildly up or down. Interest rates, unemployment and export rates, or the central bank’s policy shifts, can cause a deep change of an exchange rate.
Shares of Olin Corporation (NYSE:OLN) gained 2.41% to $30.19 on Tuesday. The stock price floated in a range of $28.66 – $30.67. The stock moved on high volume, traded at a volume of 4,034,828 shares, as compared to its average daily volume of 2.33M shares. The market capitalization for the company is reported at $5.01B.
A U.S. glut of fuel-grade ethanol has major producers, counting Green Plains Inc and industry pioneer Archer Daniels Midland Co, pursuing other markets and idling excess capacity in an effort to rebuild sagging margins.
ADM and Green Plains both said on Tuesday they are converting fuel-ethanol capacity into beverage and industrial alcohol production, in addition to idling some mills. The declarations follow Pacific Ethanol’s decision in June to buy a beverage-grade facility in Illinois, a diversification away from fuel ethanol.
The shifts are the most recent moves by the once-booming corn-ethanol sector that has struggled with thin margins for the past two years amid industry overcapacity.
Green Plains Inc (NASDAQ:GPRE) declined -0.85 points or -4.30% at the market. The stock opened at $18.45. It reached an intraday trading high of $19.10 and closed at $18.90. The total volume traded for the day is 2,801,441, as compared to its average daily volume of 865.78K shares. The current EPS for the company has been recorded at $0.80 and the beta value recorded by the company stands at 1.42 points.
U.S. ethanol inventories hit a record 23.705 million barrels in April, according to U.S. Energy Information Administration data, as demand failed to keep up with growth in supplies.
“The ethanol crush margin has been on a constant downward trend. The industry is figuring out how to deal with it,” said Tanner Ehmke, senior economist with CoBank, a lead lender to ethanol makers. (Source: Reuters)
