Ardour Capital Downgrades Gushan Environmental Energy (GU) to Hold; Mixed 1Q11 on Volatile Commodity Prices

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Ardour Capital downgraded Gushan Environmental Energy (NYSE: GU) from Accumulate to Hold. PT lowered from $6 to $4.

Ardour analyst said, "We lower our rating on GU to HOLD as the Company faces near term volatility risk in key commodities. GU is evaluating the profitability of each of its biodiesel facilities and related decision to reopen idled plants as raw material costs increased substantially. We support GU’s strategy of internalizing feedstock sourcing, negotiating exclusivity rights for the collection of cooking oil, as well as considering internal production of non-edible oil seeds. On the recycled copper front, we acknowledge that copper prices respond violently to macro economic factors, thus affecting GU’s revenue and earnings, evidenced by the slow production in 1Q11."

For more ratings news on Gushan Environmental Energy click here and for the rating history of Gushan Environmental Energy click here.

Shares of Gushan Environmental Energy closed at $4.21 yesterday, with a 52 week range of $0.59-$6.40.

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