When one looks at stock like BIOF, PEIX and others, it depends on how they are looking to satisfy their need for cash, to meet operational needs.
Now BIOF needed cash to pay debt. They finally took the route to sell their assets, satisfy the debt obligations, and if there is some cash left over, then operate the plants , as plant manager.
In the case of PEIX, they went through a similar process, but way ahead of the drought.
This put them in a position to 'buy back' their plants with discounted shares.- yes dilution. As a result the sahres have been in distribution mode.
Now, since April 1st and looking out to year-end, the crush spread is positive!.
What does this meand to PEIX? it means that they are GENERATING CASH. since April 1st with 83% ownership of the plants. Why is the 83% ownership important?
Because every dollar earned in the crush process ( ethanol + WDG - corn) 83% goes to PEIX, not the debt holders! Now this is better than expected in 2013. Why? there is more corn available than foreseen in 2012 and 1Q13.
So if one was to buy a penny stock, now is the time. Why?
Because even of they go with a stock reversal, their capital value as a markjeting company will then be viewed as a stock earning CASH.
Now in term of cash earning propensity, watch them announce the TURN-ON of the corn oil extraction process. Assume they earn 4c a gallon on corn oil. Where else will you find a 30c share equal to 1 gallon per share earning 4c per gallon JUST on a by-product - corn oil.
The same road is ahead for BIOF, but it is a long process - 2 years.