Thank you for your shares and here's something you missed in the PR
Warrants for second offering at $1.50
Yes, institutions get discounts. So, we now know that $1.05 is an absolute floor of where big money thinks the stock price is. Except add 10 to 20% normal discount back in. Oh, so institutions think this is currently worth $1.20 minumum.
Institutions are also looking to make a minimum of 8 to 12% a year MINIMUM off of any investment. So they really think it's worth $1.30 right now.
EXCEPT, they are also speculating that $1.50 will be a steal in the future. Now add all those normal institional discounts and expected returns on top of that and you are getting close to $2.00
So, at a minimum you can expect to see $2.00 in the future based on big money speculation.
But let's not leave out WHY PEIX did this. They may be short on cash right now but they (insiders) know the PPS is going to shoot thru the roof. So, they were literally willing to borrow at a margin to get another 7% of all that goodness. Think of it this way, do you have a margin account? Would you borrow it to the max for a sure thing?
But hey, I kept an extra $16000 in reserve for a pull back like this and I just used it all in $5000 tranches between $1.11 and $1.16
Great points, Mikey. I like PEIX's aggressiveness. This is a really bullish sign for us longs. Fundamentals are still intact. In fact, they're getting better as time goes. We can see that more and more institutional investors recognizing the value in PEIX. That's why we see the great news today.