There's a bull pennant forming in PEIX, a California based ethanol producer. The event driving the flag's development was Bush's comments in the State of the Union address seeking regarding ethanol fuels:
A review of SEC documents reveals what appears to be a highly speculative play; future growth of this company seems to rely on a complicated plan involving debt and equity capital to build ethanol plants. I generally don't trade in companies with no earnings (a hold back to my tech bubble crash experiences).
So it's an interesting case of Technical Analysis, which signals a buy here, and Fundamental, which signals extreme caution. The one bright spot is the progressively higher lows seen despite a soft trading week.
« Any opinions expressed on the Seeking Alpha sites are those of the individual authors and do not necessarily represent the opinion of Seeking Alpha or its management. »