is just the beginning. in this operating environment, and going forward because of a 2 yr corn glut that just commenced. What you need to focus on is the massive operational leverage of these plants. rex does 240 MM gallons and they are making 45 cents per. this info is public, you can look it up. That's over 100MM$/yr they have 8mm shares, are buying back, paying debt, and have 24$ assets on the balance sheet, 12$ cash.
after SGA and interest, they may make 8$ or more in 14. 12$ cash, 8$ earnings and its only $43. Sounds horrible.
this video could make you a fortune. the last 3 minutes is the key, but a must watch for those of you who realize there are 10k stocks out there and this is a 3 day weekend. there is little interest in jsda this time of year.
youtube - Keith Schaefer - Talking Pacific Ethanol PEIX
Talking It Up BIG , a MUST Watch Video
I Posted the Video On Twitter and IHUB
Keith Schaefer came out with another note on PEIX today January 17th 2014
Said bullish scenario would be 160million gallons/yr at .60 corn crush spread less $15million for SG&A and Interest and you get net profits of $5/share. Figures low multiple of 5-7 because PEIX is the smallest pure ethanol play. That's a bullish estimate of $25 to $35 for share price in a year.
Who Is Keith Schaefer ?
Keith Schaefer of The Energy Report
Keith Schaefer, editor and publisher of Oil & Gas Investments Bulletin, has built an impressive track record of foreseeing structural changes in the energy industry. Schaefer knows when to take or refuse opportunities in the volatile ethanol industry, as he demonstrates in this interview with The Energy Report. And he knows how to bide his time while waiting for catalytic moments-the singular events that can make all the difference between survival and extinction for a junior oil and gas company struggling to raise above the fray in the fracking fields.