Petter, REX's CEO Rose stated that they are buying back shares at these depressed prices in lieu of making an external acquisition-- they are basically creating higher EPS by significantly taking down their sharecount relative to earnings. I would hope for a dividend now that all plant debt is paid off.....
I've been contemplating rebuying REX but the guidance for Q1 and Q2 is uncertain for investors with ethanol and oilprices so depressed. The good news is that DDGs prices are back up over $200/ton and natgas prices are super-low, and corn prices are still relatively low (not as low as for REX's Q3 period) so they are making back a portion of what they're losing on plunged ethanol prices.
I haven't examined closely all the numbers, but i surmise that in Q1 and Q2, given present prices for everything (and these could change), REX might be able to post around 1.85 to 2.05 EPS, but don't quote me on that!!
But everything i'm reading about crude oil glut here in USA and storage at Cushing likely maxed out in 10-12 weeks suggests to me that oilprices may crash at some point in next month or two, and that would have a terrible effect on gasoline prices and almost certainly drag down further the price of ethanol. One might be able to buy REX in the $40s at that point.
In the meantime, i'm looking for gains in the biotech sector and playing the volatility in certain commodities.
