Yes the future looks bleak for ethanol right now. But, this stock is not worth $3. With the cash levels they have they could support themselves for years without income. However, it is not a favorite stock at the moment...if the numbers for the next quarter show another loss (which will probably happen), don't be surprised to see another 10% loss in the stock. It would be absolutely ridiculous and even further oversold, but there's just no interest. It's similar to what happened with Ford when it hit $14, no one saw any near term future. This is just not a stock to hold short term especially if you don't have the guts. I would say now is a nice entry points, but I can only imagine more damage is to be done after earnings, we will see.
I bought in at 8.92. Stock at 52 week low, has improved on earnings each quarter, and the CEO bought 250k worth of shares? Yeah seems like something is up. But, why is the volume so low? Bad industry? You can literally see the individual trades in a day which is surprising...
I don't see how peix or other ethanol producers could easily be profitable. With opec changes its no surprise we see a down day...any thoughts? I saw some estimates toward 20 a barrel in oil
On Wednesday it was a problem that we had such a run up because there was a gap up. I fully believe Friday was a retreat to fill the gap, which it did after only a penny under that gap, and already started moving back up a little bit before close. I doubled down and expect at least a 10% gain next week. Hope I'm right...happy trading!
You have 1 year when you go under $1 to get back up or be delisted...we're not even close to that and our current valuation is already half of the company valuation in cash. I get the loss quarter after quarter, but a lot of the issue is the low oil price which cuts margins on ethanol, and the recent acquisitions which should no longer have a cost unless you account depreciation. I still expect a loss this upcoming quarter, but not 1-2 from then. Now, bankruptcy? C'mon man...a company working at full capacity and a bargain price is much more likely to be bought out before bankruptcy. Even then, bankruptcy isn't even close. The company would have to have massive losses for 1.5 years to even use up that much cash. Even at the current loss rate, it would still be what, 3 years?
Sure. It's called a "short squeeze."
The news was nothing bad, losses were expected, but hype built up and selling took off for shorts to profit. A bullish 3 black bar down pattern occurred, signaling a reversal, and they all covered their positions by buying. I imagine tomorrow will be a profit taking day, therefore I sold half in case I am wrong. Understanding candlestick reading is very underrated in this world... i highly recommend you look into it, as it has saved my #$%$ time again and again and again.