Also wondering why they did not do it with debt...or partial debt-cash offer. Company will retain cash...so as a stockholder..although smaller than I was...they would do something positive for stakeholders. Maybe a special dividend...maybe stock buyback. But, why would they buy back stock when issuing new to merge? They may soon announce full ownership that will boost the PPS. Does anyone here truly understand what the final steps to merger and dilution will do to PPS? I am asking because I do not know. Does the extra revenue trump dilution?
chuck.... diz's post is themost intelligent post I have seen here for awhile. He is right...do not know how many times I hear to use options when you want to keep a stock and protect yourself. I have not learned how to do it.
Good info diz....Still need some education on trading options. I am signed up to do so in my account, but have not tried to do so yet. EIA Report due out tomorrow. If we get a pullback below 12, I may buy some shares back. API was negative for oil today, but there has been some disconnect between API and EIA. Gasoline stocks may be below forecast though and may give PEIX a boost tomorrow. I am waiting to go long oil and tomorrow may be the time after report.
I wish all longs luck here. Remember...I still own shares and intend to buy back on pull back. Biff...some of the shares I have sold were pre split. I have done well...although not as well as I should have when we went above 20 bucks. I did sell some and have traded in and out, but feel that there could be some headwinds to the company with the merger short term. I just cannot get my arms around what the dilution will do short term to the company. Good luck to you and all longs.
Respect you Kelly,,but sold most of my position between today and yesterday. I do not doubt better days ahead for PEIX..but management is not shareholder friendly. Will re visit when we pull back with earnings and macro with oil...refiners. Bottom line for me..the management team does not do a good job of realizing that PEIX is a public company. I was hoping for more activism or potential buy out. Still hold some shares...but sold 75 percent last few days. This company does a terrible job of giving guidance and communication to shareholders.