The Jaywalk Analysts have moved from a Buy to Strong Buy position. Four analysts now rate PEIX a STRONG BUY and three rate it a BUY. Do you think they are basing their upgrade on earnings or because Pacific Ethanol is a takeover target, or both?
That explains why the original plant creditors are hanging on to the remaining 4% ownership. There is some serious $$$$$$ to be made.
The Jaywalk Analyst report on TD Ameritrade has once again upgraded Pacific Ethanol, increasing the rating to a 1.89 from the recent 2.11 scaled BUY Rating, on a scale of 1 to 5 with 1 being the top Strong Buy position.
4 analysts now rate PEIX a STRONG BUY , 3 rate it a BUY, 1 rates it a HOLD and 1 rates it a SELL. It has been steadily climbing on the rating scale over the last several months and is approaching a perfect score of 1, or complete STRONG BUY.
I was talking with a Financial Analyst friend of mine this morning and they told me not to be surprised if Pacific Ethanol was sold within 30 days, based on the recent actions the company has taken.
With the recent push to buy down debt and accelerated warrant repurchases it leads one to believe that Pacific Ethanol's management is actively shopping for a buyer. The flurry of investor road-shows and recent oversold share price also adds to the evidence. Yesterdays comment by the CEO hammered it home for me.
The question is what is the projected buyout price? My guess is the buyout will be in the $750-800 million price range.
You can see the daytime shorties limping and crawling back from the battlefield following behind bjosh blowing the fife and Raylene banging on the drum. Hilarious picture don't you think?
I'm betting that the export total exceeds the projected 1 billion gallons. With the cost of corn dropping as much as it has, the demand for the cheap ethanol will ramp up accordingly. No other country can compete against the US in ethanol pricing and volume. This locks in the long-term profits for the US ethanol plants and I would continue to watch for more consolidation in the industry.
The downward flow was fun to watch. The people that set stops at 20 thought they were safe. Uhmmm, not really. I added to my position today.
It looks like that number is probably cut in half now. They needed to close out their positions before the crop report today. Shady, sneaky and low-down dirty if you ask me. But I took advantage and bought some more on the down swing. Anybody else buying today?
Those are impressive starting yields. It looks like the USDA will have to increase their projections which will help to lower the corn costs for ethanol plants even more.
The short interest as of 8/29/2014 is 2,728,016 shares. This is down slightly from the 08/15/2014 level of 2,731,348, which was down from the 7/31/2014 level of 3,147,560. The shorts are still hoping but they should realize that hope is not a good strategy.
The Jaywalk Analyst report on TD Ameritrade upgraded Pacific Ethanol to a 2.11 scaled BUY Rating. It has been steadily climbing on the rating scale over the last several months and several of the 9 analysts reporting just upgraded the stock to a Strong Buy. Steady as she goes.
There is so much corn that they are already starting to store it on the ground as the elevators are full. It looks like the cheap corn is going to be around for some time.
The overall share price trend continues to climb and the analysts continue to raise their target levels. I noticed the institutional investors are also buying into the company now in a big way. That's good news and it doesn't hurt that corn is now holding steady in the sub $4 range. The ethanol companies margins continue to crush it and the experts are saying this will now run through 2015 and into 2016. My how things have changed from two years ago.