Tristan R. Brown
Alternative energy, long/short equity, commodities, energy

REX American Resources Is Very Overvalued At Current Prices

Executive Summary:

REX shares have rebounded by more than 100% since bottoming in 2012 on the back of a strong Q1 2013 EPS and high analyst estimates. The company is very overvalued at its current price, however, and could see as much as 50% downside over the next year as the industry's numerous headwinds return.

REX American Resources (NYSE:REX), an independent corn ethanol producer, has benefited greatly from the improved operating environment that has developed over the last year. While the company's share price has retreated from its July highs (see figure), its share price has outperformed many of its competitors and the broader S&P 500 index by increasing 113% since its November 2012 lows and 58% YTD....

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