George Wan
Long only, energy, commodities

Pacific Ethanol: How A P/E Of 169 Can Be A Solid Buy

When you type in Pacific Ethanol's (NASDAQ:PEIX) stock ticker in Google right now, you will see that it has a trailing P/E ratio of something like 169. Doing a little further research, you will find that PEIX posted quarterly diluted EPS of ($0.40), $0.54, ($0.69), and $0.68 for Q3 2013, Q4 2013, Q1 2014, and Q2 2014 respectively, for an (NYSE:LTM) EPS of $0.13; and at its current share price of $23.11, the P/E of 169 is indeed not inaccurate. While this may seem like a reason to avoid this stock, let me tell you why it is exactly the reason why you should dig deeper. In this article, I will try to convince you that...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details