Cali ethanol added another 4 cents to yest's 9 cents. now at 2.44.
corn was flat.
this is driving exports off the West Coast. That, along with Cali comprising 25% of the domestic ethanol market, is keepin a strong floor on margins.
even the LCFS credits have been in rally mode along with RIN's
Converged bullish indicators and cheap valuations (REX and GPRE has seen profit taking, but not PEIX) make this such a great safety play and value proposition.
along with new money.
The balance sheet cash flow and earnings should be uber-stellar imo.
makes for great headlines all-in-all
up 9 centsor 4%.
margins are about 80 cents in cali and climbing, net of all costs
and going higher.
Ethanol futures charts are in bull MACD mode, and early in the trend.
I think I've mentioned that.
they got word of the est revision this week, from 50 cents to 97 cents.
that is worth a 50% move over the next 8 weeks imo.
the accumulation for weeks has started to get to be a crowded trade.
the next run up will be fierce. The shorts have a lot of stops in the 18's+19's
holy cow how could I forget, the best news that was never 'published' was Sidoti analyst raising this quarters earnings estimate by 95%! from .50 to .97
...a figure higher than GPRE's estimate for the quarter
that stock is 20 dollars higher even though they are heavily leveraged and have muted margins.
this stock is going to be a rocket BEFORE earnings. It migh go up so much that there is little room left to run after earnings.
I wa out and had not seen this.
Easily best news of the week so far.
nice 25 cent premium over ARGO
On a different note...funny hoe the conspiracy theorists have been run out of town.
Being rationale in the face of irrationality is what a contrarian is all about.
this is emulating the GPRE breakout of a week ago. Just look at the 5 day on yahoo or the daily charts on stockcharts.
Notice the tremendous support at 17? The bid is tremendously deep and rising.
Low risk at 17.
I am long the calls. I just sold the ones expiring this week on the spike this am....waited and got august 17's and even some july calls I had sold for 1.70 area(I bot them at .35 last Tuesday, thus the 425% return)) I rebought them for 1.15 for a quick trade.
was long and am now longer.
hope that helps.
sorry gpre est is .96 not .94. still ours is higher, and their full year estimate is actually .49 less than Pixie's.
Margin of safety is excellent at these prices. Obviously someone did the math and bot ahead of the analyst revision.
of .94. That stock trades at 38 with a ton of debt baggage and low margins.
2014 full year estimate raised for Pixie from 2.60 to 3.69.
Like I said last week, a reasonable valuation is 30. Scoff all you want while my calls go up 300% just today.
and remember REX just put former Republican Speaker Dennis Hastert on their board of directors.
Ethanol has some solid backing
nice political tailwind developing...wonder what the EPA administrator will do with that tidbit, as they come to a final enumeration of RFS 2014.
the class sociopath did not buy 25k shares.
**********note, if you are conversing with this cyber troll I will have to put you on ignore, and probably will stop posting here altogether.
do everyone a favor and just let him go about his nonsense.
you are driving sane people away-make no mistake.