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...

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