Listen, there are so many factors that everyone is just ignoring that it baffles me.
First off, ethanol prices are low, there were back end costs to completion of a plant in the millions, as well as other acquisition costs on top of that in the millions.
Now, everyone is looking at a loss, boo-hooing at -.18 cents per share. The fact that it matters to anyone is funny...considering their BOOK VALUE is 8.5+, even with a $2 a share loss this quarter, we're still undervalued.
Now, saying the company is going bankrupt? Serious? Need it be reminded that they have a current ratio of 4.5x their debt amounts, of which 3.8 is quick ratio of 1year or less?
Need I point out that the QUANTITY sold was record breaking?
They are selling more than ever, have crazy costs due to acquisition to account for, and got hit with reduced margins because, you know, ethanol price drop.
Now, if you're comparing it to other ethanol stocks, they've already made their acquisitions and don't have such other costs. If you're trading short or relying on candlesticks, then go to those stocks. This is a long term stock, end of story.
Sure. It's called a "short squeeze."
The news was nothing bad, losses were expected, but hype built up and selling took off for shorts to profit. A bullish 3 black bar down pattern occurred, signaling a reversal, and they all covered their positions by buying. I imagine tomorrow will be a profit taking day, therefore I sold half in case I am wrong. Understanding candlestick reading is very underrated in this world... i highly recommend you look into it, as it has saved my #$%$ time again and again and again.