I sure hope YOU ARE RIGHT. I would love to pick-up some shares under $15!!
You think you are rubbing this sell-off in the face off the longs...but we we'rent going to sell before Q3 earnings anyway...so nothing has changed except for these facts:
1) This sell-off is a BUYING opportunity (just like the May sell-off). See graph.
2) This sell-off HELPS Q3 EPS. At a PPS of $23, PEIX would have had to adjust the FMV of the outstanding warrants - so this sell-off HELPS EARNINGS!
3) The futures market is overestimating the impact of Brazilian Exports. Yes, the Brazilian President is now providing a 3% tax credit...WOO...WOO...a whole 3%!!!
I agree with everything you have said AND once the above scenario happens, the SHORTS jump in and start selling shares they don't own...which magnifies the downward spiral. However, the fact that PEIX's stock price is low means the less effect the warrants will have on Q3 EPS and it is also a great BUYING opportunity.
Corn is way way down (see the Corn Futures Chart) and I can see where Ethanol Futures adjust upward in the near future.
I agree. That Ethanol Futures Chart is UGLY. However, you have to look at the CORN CHART ALSO.
Ideally, the Ethanol futures would be up while the corn chart is down...but that would be ideal. I am satisfied that both Ethanol and Corn are BOTH DOWN significantly.
Could be. Further consolidation could happen in the Ethanol Industry. Per my previous posts, PEIX is going to have to put their CASH to use by either:
1) A share buy-back (like GPRE did).
2) Declare a Dividend
3) Strategic Acquisitions
Consolidation in the Ethanol Industry does make sense because there are certain economies of scale and PEIX could benefit from a well established distribution network. For example: If BP (or another one of the major oil companies) bought PEIX, they could use their existing trucks, railroad cars, etc for PEIX ethanol.
What are you even talking about?
1) The PEIX Plants and Parent are DEBT FREE.
2) The dilution happened in 2012 because of the DROUGHT (not sure if you noticed, this is not 2012 and there is a RECORD Corn Crop in 2014).
It could be interesting if the Koch brothers bought into this weakness. Imagine the shorts surprise when one shareholder is holding the other end of their short position and announces a tender offer for the rest.
OUCH!! That would really HURT!
Dr. Mr. Koch...please sell me back some share so I can cover my short...please...
Actually, my job is to provide analysis based on the facts and fundamentals. PEIX is a great BUY at these levels.
You do not even know me, so how can you call me an imbecile?
It depends on "how long". If you were planning on selling before Q3 earnings - then I agree, your timing is bad.
However, most longs were planning on holding into Q3 earnings because we expect another decent earnings report and the multiple on PEIX is extremely low vs: what the rest of the market is trading at currently.
Plus, this sell-off will actually help Q3 EPS because the warrants will have less impact now.
Perfect (Biff) was saying load-up at $2.50 a share. Doesn't seem like too much of an imbecile call to me considering PEIX is trading at $17 now.
However, if you want to read some interesting posts, go back in history and look at the in-depth analysis that Ray and BJ have provided in their posts over the years (sarcasm).
Did anyone notice? - FINALLY there are some REAL Analysts Covering PEIX!! And, oh yeah, they all are initiating at OUTPERFORM. Not that that means anything, but it's nice to see that we have more than one analysts looking at PEIX.
I'm not feeling burnt at all. Please read my posts from August. I raised CASH going into September (I always do because September is historically horrible for stocks) which means you can usually get some good BUYS in September. I liked PEIX at $20 and I LOVE IT at $16.50!!
Plus, this sell-off will help Q3 EPS because the warrant adjustment will be much lower now.
WE ARE NOT TOAST. Shorts want you to believe that something has changed. If you wish to believe them and sell, then I guess that works for me cause I'm BUYING. Good luck to everyone.
This is the time that all of the ONE-TIME DAY TRADING SHORTS start bashing on this board. They pretend to be longs...but just look at their history and you will see that this is their first time on the board. Nice try.