Corn ethanol operating margins have begun to deteriorate due to a falling crush spread and the prospect of reduced demand for corn ethanol in 2014. Analyst estimates for REX American Resources in FY 2013 and FY 2014 have fallen as a result, although they remain quite optimistic in light of the industry's expected operating environment next year. Shares of the company remain overvalued as a result, and investors could see up to 45% downside as analyst estimates continue to be revised down to reflect this.
FQ2 2013 diluted EPS for independent corn ethanol producer REX American Resources (NYSE:REX) came in 15% above analyst estimates at $0.71 (versus $0.62 expected). This was the company's second consecutive beat...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|