Bashers and haters, no need to respond, we already know what you think (woot woot, lol)
LBAS seemed to be gaining traction, between the AT&T orders, the Battelle/DoE partnership, supposed upcoming sales to Singapore, and then announcing expected $4M in revenue... So what happened? was it all just Hopium?
Does anyone see a realistic way these guys could turn it around?
India just did first shipment to Europe.
EPA has lowered ethanol production limits unfairly, and they think a law suit is needed to get EPA to enforce the law. That will benefit AMTX.
should have 50% market cap of competitor Pacific Ethanol PEIX . Using that as fair valuation, I think he is saying stock should double from here...or more.
Yeah, I generally agree. And I'm very happy to see AMTX management taking this action to defend the stock price.
unfortunately the SA article itself discloses his conflict of interest, i.e. it says he is "short" so what can we sue him for? The problem is how incredibly influential a SA article is on a small stock. In fact there are probably SA long investors who go short simply b/c they see a negative SA article....
Anyway, we will likely have our revenge tomorrow after the update call...I think we will close above the 50 dma....
Thanks! Great find. I bought back the shares I sold two days ago. I expect a jump tomorrow when AMTX gives their update....
The article "Solvency Concerns" by Richard Pearson is extremely misleading. He's a short and it's a hit piece.
He says that Aemetis is in default and has been. Um, no. A subsidy of AMTX went into default and it very happened in 2009! This is not news and it's a subsidiary--very different. The amount owed is 3.2M + interest. Big deal. The co just paid $14M in debt reduction in this Q alone, and still had $2.7M in profit. (These numbers from memory, excuse me if it's not exactly right). These facts are found in the previous 10Q:
Time to BUY
"Item 1. Legal Proceedings
On March 10, 2011, one of our subsidiaries, Universal Biofuels Pvt. Ltd. ("UBPL"), received a demand notice from the State Bank of India under the Agreement of Loan for Overall Limit dated as of June 26, 2008. The notice informs UBPL that an event of default has occurred for failure to make an installment payment on the loan commencing June 2009 and demands repayment of the entire outstanding indebtedness of 19.60 crores (approximately $3.2 million) together with all accrued interest thereon and any applicable fees and expenses. Upon the occurrence and during the continuance of an Event of Default, interest accrues at the default interest rate of 2% above the State Bank of India Advance Rate. The default period began on July 1, 2009 when the principal payment was deemed past due; and we have accrued interest at the default rate since the beginning of the default period. In addition, since the bank demanded payment of the balance, we have classified the entire loan amount as current. UBPL asserts that the State Bank of India did not provide the committed funding of the working capital loan and only funded a portion of the term loan, thus requiring the Company to enter into a working capital facility at unfavorable terms which served to hinder the business from developing at the planned rate. The State Bank of India has additionally required the personal guarantee of our Executive Officer.
for starters, if the company had such a short-term debt crisis that "Creditors have already taken 100% of the cash generated by Aemetis this year, " then how the hell did they just report net income of $2.7M ??
It is true that the EPS would have been much larger, but the co did use the cash to pay down debt.
So, is AMTX forced to pay off the debt, or are they being prudent?
very positive sign. They will field Qs directly related to SA article and defuse that argument.
Didn't you shorts notice that the first line in the Q2 PR was they paid DOWN their debt? and overall EPS is up (even if India is down, that is a small part of the revenues). Shorts seem to think AMTX is an India play?!
Recent financials/eps were strong, I see no reason for this other than momentum stocks have become hated. Down 25% on no news? Closing near the low?! C'mon, Mr Market. Well, I sold 1/3 my shared at the end of the day... if it hits 200 DMA I may add back there, this is so disappointing!
I also think this sell off is way overdone to the point of absurdity. Recent results were strong, and energy is a strong sector. But there is a lot of hate for momentum stocks at the moment. I think that is what is at play here. AMTX is down 50% in the last few weeks, though its results were excellent...!
The chart now severely damaged. I do not think it will recover rapidly. More like 6-8 weeks, just IMO. I will probably buy more in the next few days.