Value Gaps Of All Value Gaps - A Tale Of 2 Ethanol Companies
- A massive valuation gap between GPRE and PEIX should resolve itself with a strong rally in PEIX.
- Ethanol metrics substantially improved in Q2 and should remain robust for two to three more quarters.
- There is asymmetric risk/reward to the upside for PEIX.
- To lessen risk, a short GPRE/long PEIX strategy can be employed.