Ethanol’s future once looked bright. But since 2006, when President Bush pledged hundreds of millions of dollars to treat America’s dependence on oil imports, ethanol stocks have crashed big time.

Stock in US ethanol producer Pacific Ethanol (NASDAQ:PEIX) sold for more than $18 in November 2006. It now sells for just over $1.60. Meanwhile, investors in ethanol producer VeraSun (NYSE:VSE) lost nearly 70% this year.

But Rob Fannon says there’s a bigger ethanol bubble coming – one that can make big bucks for early investors…