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Pacific Ethanol +15% on production gains, buoyant outlook

  • Pacific Ethanol (PEIX) jumped nearly 15% today and came within eight cents of hitting a new 52-week high after an operational update revealed the company produced 149.7M gallons of ethanol with sales of $908M in 2013, vs. 140M gallons and $816M in revenue during 2012.
  • PEIX's strategic goals for 2014 include restarting its Madera, Calif., production facility, improve operating efficiencies at its plants, continue diversifying its revenue and feedstock, and continuing to increase the value of its produced ethanol by further reducing its carbon intensity.
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Comments (1)
  • wpsgpratt
    , contributor
    Comments (8) | Send Message
     
    $PEIX is under priced. Plants valuated at approximately 400-500M. Debt is minor approximately 50M. Record earnings last quarter. Estimated 1qtr earnings to be reported in the next 1-2 weeks expected to be 6X last quarters earnings. PE now is under 3. Price should increase to $22-25.00 before earnings in the next 2 weeks. Expect $25.00-35.00 after earnings report. Pacific Ethanol earns approximately 20% more premium on the west coast. Also is not effected by rail car shortage as seen in the Midwest and the east coast of the US. Watch for exports from PEIX to china. Madera plant to begin operation in the next week to increase production substantially. Virtually no debt; this is a high value stock following a Benjamin Graham and or Warren Buffet trading investment. This is a strong buying opportunity even past $22.50 per share
    23 Apr, 01:23 PM Reply Like
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