Also TPLM and HES same upgrade same time. Looks like they are calling a bottom for select energy, energy related stocks?
Don't know that they are right, of course. But, they see something in PEIX at least that makes them think we've seen the lows. I consider it mildly positive.
One other stock that just got upgraded by tdAmeritrade is DRYS? Same upgrade, same time? Head scratcher!
on tdAmeritrade PEIX just Upgraded from Reduce, 2 days at Hold. Both REX and PEIX upgraded from reduce. Just noticed this. GPRE still at reduce. Almost every other energy stock still at reduce.
On 4/1/2006 PEIX reached an interday high of $3,725.40 and close of $3,395.70 [split adjusted].
Question: What was the P/E for PEIX like back then? Must have been through the roof as their production couldn't be that much more than it is today.
What caused them to fail and go into bankruptcy within the following three years?
I'm not so sure about this, the margin's for Q4 may be lower with lower oil prices, but they will still be strong. That's my new take...
It's hard to get a good read on what the margins are for Q4 and how they vary with the price of oil.
Total revenue grew 18% Record 134M gallons sold Net income $3.7M or $0.15 per diluted share Adjusted net income $8.1M or $0.33 per diluted share Adjusted EBITDA $15.5M 2014 on pace to be a record year
As stated in my previous post, the average for the quarter to date is $0.911 and climbing. There are 3 days in the 4th to date quarter where PFL did not publish the California ethanol price. On those days I used the lower of either the day preceding or following as the value. In other words, I used a conservative estimate for the California price on those three days.
By comparison, the Q3 average was $0.99
Currently, Pacific Ethanol is making over $1 per gallon of ethanol produced. They are going to blowout expectations on their next earnings!
That would be a video that no one wants to see!
Analysts are expecting LESS this quarter than last, but they are making MORE! Much more according to Chen Lin, he knows the management, talks to them directly. Now who are you gonna believe, Ray Boy, or Chen Lin?
I would just like to see a conference call update mid-quarter. It they are doing that well, why not let us know. I'd expect the stock to go up by around 50% in two to three days if we get a CC. That's $5 buckos baby!
That would send Ray Boy back to his job cleaning toilets!
Last quarter, Pacific Ethanol beat its earnings estimate with $0.33/share. Its margin has since risen from $0.35/gallon to more than $1/gallon. Imagine how much money it's making now.
Do you just make stuff up? Or are you stupid? Or a #$%$?
Then you don't know Pacific Ethanol! They are making a lot of $$$$ now with low oil prices!
Ray boy I hope you at least rinsed off those pennies before handing them over to an unsuspecting convenience store clerk! [for a can of Spam!]
According to Chen Lin Pacific Ethanol's margin is more than $1 a gallon. Imagine how much they will exceed the estimates for the 4th quarter 2014? We're going to have a very good couple of months is my opinion. Would be nice to have a conference call update on operations if they are as good as this indicates they are. We'd shoot up by $3-$4 dollars by the next trading day!
Last quarter, Pacific Ethanol beat its earnings estimate with $0.33/share. Its margin has since risen from $0.35/gallon to more than $1/gallon. Imagine how much money it's making now. The company has some debt, but its cash exceeds that by $30M. The company is now considering a dividend and a share buyback, as is Green Plains.
REX American and Green Plains also boast robust balance sheets and record-high margins. I am bullish on ethanol stocks.
TER: Why do you believe the future is so bright for ethanol producers?
CL: In September, ethanol followed oil down in price. But there was a complete rebound and more in October. The conventional wisdom is that ethanol is considered part of gasoline, 10% by law. So when the oil price falls, and the gasoline price falls, the price of ethanol should fall too. That explains the coordinated short attacks on ethanol in the past two months. Shares of Pacific Ethanol Inc. (PEIX:NASDAQ) fell 60%, while the short interests in REX American Resources Corp. (REX:NYSE) more than tripled. I own both these companies, as well as Green Plains Renewable Energy Inc. (GPRE:NASDAQ).
The conventional wisdom about ethanol has been proved wrong. Lower oil and gas prices encourage more consumption. More gas consumption, by law, requires more ethanol—more ethanol, in fact, than can be produced. According to the Environmental Protection Agency, U.S. plants are running at 930,000–940,000 barrels per day. Maximum daily U.S. ethanol capacity is 925,000 barrels per day. That's why the ethanol price rebounded sharply in October and is now higher than in the summer, when oil sold at $100/bbl.
On the supply side, few ethanol plants are coming on line because it is very difficult to get Renewable Identification Number (RIN) permits from the Environmental Protection Agency. So don't expect any major new plants in the next few years. This issue was discussed in detail during the question-and-answer session of the Great Plains' recent conference call.
TER: But ethanol share prices are still depressed.
CL: That's why I'm so excited. The oil index funds are short ethanol, but they don't understand the situation. Last quarter, Pacific Ethanol beat its earnings estimate with $0.33/share. Its margin has since risen from $0.35/gallon to more than $1/gallon. Imagine how much money it's making now. The company has some debt, but its cash exceeds that by $30M. The company is now considering a dividend and
If your answer is "Yes" then upvote the original post, if "No" then downvote it.
Did you know that the share price is going back to $15 by the end of January? They are awash in loot, making tons of ethanol and $$$$ with low oil prices they make MORE money. The January effect will be a tsunami!
Using every trick in the book! Reverse mergers, reverse splits, acquiring subsidiaries leaving the parent company with no assets, relentless insider sales "for tax purposes!" Kids have gone wild!
Time to pay the bank boys!