The Ethanol Futures have completely bounced back to where they were in mid-September before the short selling began. Looks like the shorts oversold PEIX and the rest of the Ethanol Sector.
Don't believe me? Check out the Ethanol Futures Graph on Google. It took 2 weeks for the Ethanol Futures to decline and the 2 weeks to increase back to where they were before the short selling began. This formed a perfect "V" in the graph.
I would expect PEIX and the rest of the Ethanol Companies to bounce back accordingly...PLUS, we have a nice catalyst - almost 20% short position will need to COVER and the lower PPS will have a favorable impact on Q3 EPS.
Someone may know something about the EIA Reporr coming-out tomorrow. I bet they bought $500K worth of PEIX because the EIA Report is going to show inventories are DOWN. Today's UPWARD move in the futures is also indicating this.
Oily and the shorts want you to believe that Ethanol is moving downward, but the opposite is true. Don't believe me? GOOGLE IT!
Spot Ethanol Prices Edge Higher on Signs of Demand
Spot ethanol prices were flat to higher early Tuesday as physical ethanol for transport to Chicago and New York continued to attract buyers hoping to use the product locally or for exports, said sources.
Ethanol for tomorrow transfer at the Argo hub near Chicago was discussed at $1.78 to $1.80 per gallon, up 1.0 cent, with New York Harbor product pegged at $1.95 per gallon, up 2.0 cents on the day. Arizona spot ethanol prices were talked at $1.96 per gallon, up 0.5 cents.
This was posted on one of the Ethanol Websites 24 minutes ago. Looks like Ethanol Futures made another move UPWARD. This sell-off was way OVERDONE by the shorts.
Ethanol futures gained light buyer support through Tuesday's trading session with nearby contracts posting gains near 2 cents per gallon based on renewed support in gasoline prices and a strong bounce in corn prices. November ethanol futures posted a 1.7-cent-per-pound rally, closing at $1.77 per gallon.
Any stock that "moves" is on the day trader's radar screen. There is money being made anytime a stock moves significantly in either direction. Its not just the longs vs: shorts. Its also the put/call options action, etc.
So as long as PEIX keeps on moving - its a day traders dream.
If PEIX is selling for $40 a share (where it should be) and declares a 8% dividend - then the day traders and shorts will be gone. Shorts usually hate dividends because they have to pay them to the owner of the stock that they borrowed.
Very true. The new regulations make it a nightmare for anyone who has the capital to construct a new plant. That is why the old ones are take-over targets.
Also, if you look at the map of ethanol plants - they are all in the midwest with very few in the west. This makes PEIX plants even more valuable due to their location to the western states (like California) See map on bottom right corner of attached website. Also, notice the $2.00 spot rate today.
So Oily - WHY are you on here BASHING so hard? Are you a PAID BASHER? Or why are you so DESPIRATE to see PEIX go down to $10? Margin call coming soon on your SHORT position?
PEIX was rallying in the morning trading (up over $12) but then Oily and the rest of the shorts decided to short some more shares. It is NOT the longs that are selling PEIX. It is people like Oily that are BORROWING shares they DON'T OWN and selling them.
The last time PEIX had significant AH activity was after the Q1 earnings release and the stock went-up $6 in less than 24 hours of trading. Don't believe me? Check the graph.
I've never bought or sold in AH...so I have no idea if it means anything. You would think that if someone was going invest more than $500K that they would do it during normal market hours - but who knows.
Yep. I've been to Windsor before for batchelor parties. Great "entertainment" and casinos. Letting the states make and enforce their own laws just makes sense. If you don't like gambling...then don't live in Las Vegas. Or if you love carrying a gun on your hip everyday...then move to Texas (not NYC). Or if you are against legal MJ...then don't live in Denver. It really is that simple.
There was a "social stigma" when people invested in Miller Brewing Company and Seagrams after prohibition. However, the major breweries and distillers are very well run and profitable companies. Alcohol and MJ are like anything else, you just have to use them responsibly - or not at all. You can be the kind of person that goes to the local bar and drinks beers and watches the game with your friends - or you can be the kind of person that beats the wife and kids when your drunk. Its' not the product - its the person.
The problem with commodities traders is this: They follow "THE TREND" while it is working...until one day it doesn't work anymore. For example: They followed the downward trend in Ethanol for about 10 days...and then they realized "that trend" was no longer working - so now Ethanol is back on a very very UPWARD TREND.
PEIX is way OVERSOLD right now for a profitable company with no effective debt. The moves that PEIX Management made lately (paying-off debt, increasing ownership in plants, buying cheap raw materials, selling CO2 as another product, etc) are all increasing PROFITS and the BALANCE SHEET.
At $7 a share, PEIX would be a steal. The buy-ouut value of PEIX is more than $140M.
Lets remember, that PEIX effectively has NO DEBT. In a buy-up, the creditors usually get first dibs...but there are no creditors - so the shareholders would get ALL of the proceeds.
The FMV of 4 ethanol plants is approximately $500M.
I'm not touting weed stocks. If you will notice, Balding started that tread. But I did invest $20K in it this morning - just to see what happens.
Margins are relative: so the real question is: What is the difference between the $2.00 Gallon Ethanol Spot Rate in California vs: how much it cost to produce it. When you do the math, you will discover that PEIX is still very profitable. Oh, and don't forget to account for the cheap sugar being used in Q3.
What exactly are you basing that comment on? Would it be my 3 college degrees? Or my position as Executive VP?
Or MAYBE its because I am telling the TRUTH about PEIX's VALUE - and all you really want to do is cover
your SHORT. Hmmm...this might be it!
The Ethanol Spot Rates are UP again today ($2.00 per Gallon in California).
Oily has to realize that the temporary decline in Ethanol rates is because of a temporary oversupply. Guess what? Supply can be controlled. Wow! What a concept! So now prices already have moved back-up to where they were before the sell-off.
You can listen to Oily's BS, but just keep in mind he makes things up to strike FEAR into people so he can make money on his short interest.