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It is great to see that you believe PEIX is going to "SOAR".
My Analysis has come to that same conclusion.
Dude!!
You've been following PEIX for 14 years.
Just tell me HOW MANY SHARES that PEIX Issued in Q2 and Q3 to pay down $68.5 Million in debt.
I have a feeling that you can't. Why? Because they didn't.
I actually research the stocks I invest in.
And I actually READ the 10Q's and 10K's.
And do you wanna know something? I can't see anything in the 10Q's about PEIX Issuing Shares in Q2 and Q3 to pay down debt.
So you are going long at $6.05?
Am I reading that correctly?
If so, then what about all of your posts about Wright's Insider Selling and the dilution in Q2 and Q3 to pay down debt?
Also, I didn't give back my gains. Remember that "Core Position" that us Retail Investors trade around? Well, guess what - I took profits.
When PEIX is RED = Buy.
When PEIX is GREEN = Sell.
Oh...
And to avoid future questions:
I believe that PEIX is going to soar.
They’ve ditched some costly property and put $10 million in the bank on top of the $75 million DOLLAR SHARE OFFERING THAT OCCURRED IN Q3.
(It cracks me up that you’re asking me to prove share offerings while you hyperlink a press release that proves they are selling shares)
Why will PEIX soar?
It’s my belief that PEIX has gotten a new CEO and has raised nearly $100 million dollars so that they look attractive and healthy.
If PEIX can prove with a solid 10K next year that they have less than $35 million in debt then a buyer could just come in and sweep them up.
Here’s the best part:
They are looking healthy because they used shareholders like you to clean up a nasty balance sheet.
One thing they didn’t do; they didn’t clean it up with operations revenue. They used shares.
Dude!
Open up the SEC filings for the respective 10Q’s.
Sorry man...I’m not going to send you SEC filing excerpts when you can just go on to Edgars and read it for yourself.
Okay.
No worries.
If PEIX Sold Shares during Q2 and Q3 - just send me the Press Release or the part of the 10Q that says that.
Exactly HOW MANY SHARES did PEIX Sell in Q2 to pay down $34.4 Million in Debt?
And Exactly HOW MANY SHARES did PEIX Sell in Q3 to pay down $34.1 Million in Debt?
I think it would take A LOT of Shares to pay-off $68.5 Million in Debt in 2 Quarters.
Dude... nobody said that China or India were buying PEIX’s ethanol or any US ethanol.
What I said was that China and India were/still are facing ethanol grade corn.
That means that they aren’t shipping any corn and are mostly just buying it.
That means anyone with corn futures contracts would get a nice premium which will make the crush margins more attractive.
PEIX holds multiple corn futures contracts.
How is it that you don’t know these things about PEIX?
Are you just retail and don’t actually research a stock you’re buying and investing in?
Woooooof
It’s gotta suck to give back nearly all of last weeks gains in one day.
I’ll buy the $6’s here at $6.05.
Then you can say later that I “claimed to” have bought at $6.05 in a month when you’ll have my forecast in print that it’s going to go higher.
Interesting.
You are the first person I have ever heard say they bought PEIX during the COVID-19 Pandemic because of a Chinese Ethanol Play.
Did the Chinese Ethanol Play every happen?
I would love to hear more about PEIX selling Ethanol to the Chinese.
The Chinese Ethanol Market could be another GREAT CATALYST for PEIX in the future.
I saw that press release.
I saw it and read it the day it came out.
That was the press release.
The true devil was in the details INSIDE OF THE 8K.
Oh... by the way...
Feel free to go read the Q2 and Q3.
You’ll see plain as what you’re reading right now that they sold shares, warrants, and convertible notes during both of those quarters.
There is not anything to argue about.
I’m not stating my opinion here. The 10Q’s reveal that what I’m saying is fact according to their SEC filings.
Have a nice day
Actually, PEIX did make a Press Release on the Offering.
Here it is:
Press Releases
Pacific Ethanol Announces Closing of $75 Million Equity Offerings
Download as PDFOctober 28, 2020 5:36pm EDT
SACRAMENTO, Calif., Oct. 28, 2020 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (NASDAQ: PEIX), a leading producer of specialty alcohols and essential ingredients, today announced the closing of its previously announced underwritten public offering of common stock and pre-funded warrants and concurrent private offering of warrants, for total gross proceeds of approximately $75.0 million.
Here are the link:
https://ir.pacificethanol.com/press-releases/detail/552/pacific-ethanol-announces-closing-of-75-million-equity
I still don't see how PEIX used the proceeds of it's October 28th Stock Offering to pay down debt in Q2 and Q3.
No dude.
If you continue to prove a reading deficiency I’ll quit wasting my time replying to you.
You asked why I bought.
You did not ask why they jumped from 52 week lows to 52 week highs.
They very clearly moved in a big way after they shuttered nearly 50% of their hemorrhaging ethanol business and began specialty alcohols.
That’s not what you asked.
I bought them again because I believed that consolidation in the ethanol space could create a nice premium to the share price.
Either way, I was right to buy...and I was right to sell.
Oh I see.
It is the Chinese Ethanol Market that made PEIX move 1,000%.
And here I thought the 1,000% increase in PEIX's Stock Price was due to the fact that they Produce 140,000,000 Gallons of Medical Grade Alcohol which is the main ingredient in Hand Sanitizer.
And Hand Sanitizer seems to be a hot commodity due to COVID 19.
I’m hopeful that you bought much lower than where PEIX is today.
It’s funny to me that PEIX closed their highly dilutive Reg-A more than a month ago and yet here you are without a single Press Release talking about how they finally paid off some decades old debt.
Maybe a NasDaq company like PEIX should be higher in tandem with the NDAQ today but they aren’t?
Maybe you need to dig way past Press Releases (which are protected releases in which they can damn near claim anything due to laws that protect people making forward looking statements) and take a class to learn about 10Q’s and 10K’s.
It’ll make you a better investor
easy answer
Consolidation in the ethanol markets and China/India increasing ethanol use with diminished corn for ethanol reserves meant that bigger fish would be looking to buy beat up, poorly managed US ethanol companies.
You claim to have bought PEIX at $3.35 and sold it at $11.00.
Okay. That means you bought PEIX around August 10th.
Why would you even buy a stock that diluted it's shareholders in Q2?
Okay.
Can you send me the link with the dilution that happened in Q2 and Q3? I would really like to see the link.
I mean, PEIX's share price would have tanked in Q2 and Q3 if they really were diluting their shareholders during this period.
But instead, PEIX's Share price skyrocketed over 1,000% instead.
Let's look at the facts:
PEIX's Earnings Per Share was 27 Cents/Share at Q2 (Fully Diluted)
According to you, they issues some shares and diluted the shareholders sometime in Q3 in order to pay down debt.
Then, PEIX posted EPS of 24 Cents/Share in Q3 (Fully Diluted)
I wonder what PEIX is doing with all of that CASH from the EARNINGS they are making if they are not paying down debt with it?
I told you.
They used shares and convertible notes were converted AWAY from debt and into shares.
Look dude... there’s nothing to argue here.
PEIX has had a good second half of 2020.
Yes, I saw and read the press release.
What the press release doesn’t say but the SEC filing does is that PEIX issued convertible notes, warrants, and shares during the latest quarter.
They did this to pay down debt.
Go read the filing for the Reg-A. You may as well read it since you co-funded the pen they used to sign it.
Okay.
Lets try this again with the Q2 Press Release:
Press Releases
Pacific Ethanol Reports Second Quarter 2020 Results
Net income of $14.6 million and Adjusted EBITDA of $28.8 million
Adjusted EBITDA for the second half of 2020 expected to be in the range of $50 to $70 million
Total debt reduced by $34.4 million during the quarter
The share offering that raised $75M in Capital closed on October 28th.
So how did PEIX pay down $34.4 Million of Debt in Q2?
You very clearly don’t understand what you’re reading.
Did they reduce debt?
Yes they did.
They ABSOLUTELY did not reduce debt from revenue.
They reduced debt by share issuances.
Go back and look at the 10Q.
Yes...I believe that PEIX is generally healthy...NOW...
but PEIX has over a decade of repeated quarterly losses and was in such disrepair that they needed the stock offering to pay down (pay down...not pay off) over $135 million dollars in debt.
A quick glance at their MRQ proves that they did not pay off nearly 30 million in debt from operations revenue.
Look at their operations revenue and look at the cost of that revenue.
For every $1.00 that they earned they spent over $0.80 to earn it.
Their cash and debt buy-down came from issuing and selling millions of PEIX common shares.
Let's start with the latest PEIX Press Release:
Press Releases
Pacific Ethanol Reports Third Quarter 2020 Results
Net income of $14.9 million and Adjusted EBITDA of $34.1 million
Adjusted EBITDA for the second half of 2020 expected to be in the range of $50 to $70 million
Total debt reduced by $29.3 million during the quarter
Uh...do you see the part about Total Debt Reduced by $29.3 Million last quarter? This is where I am getting it.
And also, how many Penny Stocks are generating $14.9 Million of Net Income and $34.1 Million of EBITDA?
If you know of any other "Penny Stocks" making over $1/Share EPS - please let me know. I would appreciate it.
Here is the link if you would like to read it:
https://ir.pacificethanol.com/press-releases
I am happy it’s risen, again, today to close the week with not just an up day or two but back into a technically bullish area.
Why is it that all of retail talks about “trading around some core position”.
Whatever.
PEIX is NOT paying down $30 million in debt per quarter. I didn’t see that in the MRQ and they don’t have enough quarterly revenue to do it anyway. To suggest or believe that they are is simply wrong.
ONCE the $75 million dollar Reg-A PROVES to be accretive and once the $10 million dollar Burley sale PROVES to be accretive then I will wholeheartedly agree that the $5’s, $6’s and even $10’s will PROVE to be undervalued.
Before that, it’s a speculative penny stock. I don’t comment on long or short positions for penny stocks.
FYI: Raising capital through dilutive share offerings alone DOES NOT increase earnings per share. It decreases them.
Let’s say I have 80 million shares and I earn $0.25 per share in a quarter.
Next quarter, I earn $0.25 per share on a post dilution Reg-A share count of 90 million. Simple math proves I earned less per share. I would have to increase revenue ON A REVENUE ONLY STANDPOINT to increase EPS that muted the dilutive effect of the Reg-A.
I don’t know what your “long term” time frame means. There is no prior reference that you’ve given which I have seen.
I also don’t know your education or experience level so your “analysis”...well...I hope your analysis capabilities serve you well.
I’ll tell you this: not too incredibly long ago PEIX was at historical highs of $19.+ (****please note that this high is split adjusted on a 13 year chart****if you can’t see the splits, get a better charting tool)
If your “long term analysis” didn’t see that precipitous fall and splits coming well then, you’d be terribly upside down today.
Take care and have a nice weekend.
I get all that.
However, I am also very happy that PEIX is up another 10% today.
I Invest and Trade around core positions. So I don't buy all at once and I don't sell all at once (usually).
Nothing is 100% Certain, but PEIX is paying down $30 Million of Debt per Quarter and they will soon be debt free.
Combine no debt with about $1.00-$1.60 EPS per Year and I really think PEIX is undervalued in the $5 Range (OMG! I mean $6/Range today).
No Investor likes dilution. All dilution is bad. However, to varying degrees.
If a company is raising Capital to improve it's Balance Sheet AND EPS - then that kind of dilution has a long-term view for the Company. It's still bad - but I have it factored in to my long-term analysis and I like the answer I am getting.
You need to do a little more research on my historical bias for PEIX.
I was very bullish and loving the run to $11.44 and HAD hopes for dramatically higher share prices.
I was alarmed to see the associations between PEIX, and the servicer’s of the Reg-A.
I was very alarmed at the dilutive Reg-A BECAUSE I always prefer cost savings and Revenue increases over share offerings WHICH ONLY HURT the common shareholder.
Every single person in management and anyone working for PEIX with a any kind of share based compensation get more shares under their revised compensation package. They’re all given more shares under the revised compensation package so why would they care about the dilutive Reg-A?
Easy answer...they wouldn’t.
There is no real incentive for corporate change when they rely on common shares to raise $75 million dollars to help buy down legacy debt that many current common shareholders had zero say in to begin with but now must pay for.
Do you understand that?
I became bearish at $11.00 and sold.
I’ve seen this walk down to around $5.00 per share and was bearish the whole way down.
Bearish yes...but not wanting to short it BECAUSE I have maintained that even though I don’t like the Reg-A I recognize that the improved balance sheet going forward should be accretive.
As far as insiders selling shares goes: I disagree with regular, seemingly arbitrary sales from insiders.
That’s it. I don’t care if he does it every time and I won’t research your claim that he does because I don’t care.
I like to see insiders accumulate shares. Period.
How can they expect to say “hey common shareholder you should be accumulating” while they’re selling.
I don’t disclose current long or short positions.
Take care,
Happy Friday.
This post makes you sound Bullish on PEIX.
However, your other posts make you sound VERY BEARISH.
Yes, PEIX raised capital to retire that CRAZY 15% Debt, and Wright did sell some shares (like he always does).
Heck, I sell my Stock Grants also as soon as they vest also. They are part of my Compensation Package at the Company I work at. I learned a valuable lesson from Enron. Those Enron Employees had their eggs all in the Enron Basket.
Anyway, it is good to see that you are predicting a EARNINGS BEAT for Q4.
PEIX is a very volatile stock (obviously). And Traders and Investors make money on every movement (up and down). As such, it is a fun stock to track. Some stocks trade at the same price day-after-day (boring).
At least PEIX is not boring. LOL!!
Lol...
4th Quarter earnings will be announced in their 2020 10K.
I believe the following:
They will beat the QoQ and YoY earnings.
Since they are wrapping proceeds from the Reg-A and the Burley sale into earnings I think it’ll be a substantial beat.
PEIX will see a big bounce in revenue. They’ll also see higher costs of revenue due to all of the re-tooling costs from switches to specialty alcohols.
They’ll also see better crush margins BECAUSE the costs of transportation will be lower with lower fuel costs and natural gas costs.
They’ll see lower revenue from ethanol because of low fuel prices and continued moderate demand.
PEIX has already shown you in their MRQ that while the Q showed a significant decrease in revenue, they controlled costs and had an EBITDA of around $34 million and saw a gross profit of nearly $15 million.
That being said, they showed that nearly $20 million of their quarterly revenue was spent on earning $34 million EBITDA. This is in the Cost of Revenue section of their Q.
I don’t care if you call me a short seller or anything else. I short terrible stocks.
I don’t think PEIX is terrible. I think they were/are historically mismanaged and made a mistake with the REG-A.
I disagree with lofty analyst share price projections when they’re in bed with the Reg-A filing and stood to gain with a higher share price.
When I was short PEIX, they were on their way down due to poor management of costs/poor hedging practices. I haven’t been short since I collected on those contracts and went long in the $3’s.
I hope PEIX climbs. It’ll be good for a lot of investors.
I rarely disclose any meaningful position, long or short, while I’m in the trade.
Take care
You sound an awful lot like a SHORT SELLER TO ME.
But, since you know so much about PEIX, here are a couple of easy questions for you. Let's see if you can answer them.
1) Since you have been following PEIX for the past 14 years, what is your projected Earnings Per Share for Q4? I mean, COVID is still raging. Will PEIX beat the 25-28 Cent/Share EPS they posted in Q2 and Q3?
2) Also, what is PEIX going to do with the $30-$35 Million in CASH they are bringing in each quarter?
You took all that time to tell me that my opinion doesn’t matter?
I’ve been trading PEIX since 2007.
My last position I bought at $3.35 and sold at $11.00.
There was something cosmically wrong with it receiving upgrades and lofty price targets ranging between $16.00 and $21.00 from insiders who were facilitating their $75 million dollar offering.
It also hit a 52 week high at a known “bugaboo” price of $11.44.
Here in San Diego, 1144 is “Ten Code” for dead. It hit that and dropped and I sold at $11.00.
I’ve been bearish but have still traded it here and there since then but the real reason for the bearish posture is that $75 million dollar offering.
Will it clean up the balance sheet? Sure. Will selling some property clean up the balance sheet? Yes I’m sure several things they’ve done will.
On a Price to Earning level are they a cheap stock?
Yes they are.
The biggest problem with PEIX is their rise from $0.22 earlier this year to this price and the short interest that has pressured it lower.
If my opinion on these things don’t matter to you, don’t waste your time replying.
I rarely disclose a position on a penny stock.
If you are not shorting PEIX, then your bearish opinion means nothing.
Or are you long with your bearish opinion?
If you have no skin in the game - then why even post on here?
Also, PEIX diluted at $8.42/Share to retire their 15% Debt. If you do the math, you will realize that both the numerator and denominator increase in the EPS Calculation.
EPS is what matters.
The denominator is increasing due to the additional shares, but the numerator is increasing even more due to the fact that there will be no interest expense and more income.
GLTA. I hope you decide to actually invest or short PEIX someday.
I’m not shorting PEIX.
I’ve never shorted PEIX.
I don’t know what you’re talking about with a Covid Vaccine. PEIX doesn’t sell any vaccines.
PEIX got into disinfectant and specialty alcohols and ditched nearly half of their ethanol.
Don’t you think it was a little premature to ditch so much ethanol before Canada increased allowable Ethanol levels in their gas and Biden got elected?
How about this?
I’m bearish PEIX because they closed $75 million dollars in share offerings and it’s terribly dilutive to shareholders.
You don’t have to be short PEIX to realize that this dilutive offering is super toxic to anyone who owned shares above $6.85 and I’ve been right so far.
Wright ALWAYS sells the shares he receives.
He has been doing this for years and years.
Wright receives his shares as part of his compensation package.
Having shares in the company you work for is nice - but shares do not put food on the table. Cash does.
Have you gotten your COVID Vaccine yet? If you have, that is 1 down, and 7,999,999,999 more people to go.
There are 8 Billion people on Earth. If you think that vaccinating people is going to happen overnight - try again.
Also, have you read Biden's Bio-Fuel's Policy? If you haven't - please keep shorting. You are in for a nice surprise. LMAO.
You as missing A LOT of data in your analysis:
1) PEIX is PROFITABLE. PEIX is making over $1/Share EPS. Please read the Q2 and Q3 10Q's for details.
The Average P/E Ratio on the Stock Market is 15.86. So take the $1/Share EPS and multiply it by 15.86 to get the value of PEIX.
2) PEIX issued shares in order to pay down it's 15% Interest Rate Debt. PEIX will be DEBT FREE in a few more months. (See 10Q's and Press Releases for details).
Yes, PEIX now has more shares outstanding due to the offering. BUT they also have less INTEREST EXPENSE because they no longer have debt.
When you exclude the Interest Expense and include the offering shares into an EPS Calculation - you will realize that the offering actually INCREASES EPS!!
Less Interest Expense = More PROFITS.
Keep on shorting PEIX and you will find out what all this means (the hard way).
I actually feel bad for the folks that bought into this pump and dump.
I mean, PEIX actually used to be a pretty reputable ethanol company.
We used to look at things like crush margins and transport costs to try to figure out projected P/E’s for ethanol companies.
PEIX used to issue fairly regular guidance.
Now...they’re hiring their own analysts who give these super lofty price targets that cannot be reached with commonplace valuations and what do they do?
They offer nearly $75 million in shares and sell into their own pump and dump scheme to raise capital to “pay off debt”.
They announced that they closed that offering in October.
It’s December and I have yet to see a single Press Release where they’ve said “we just used that successful offering to pay off $75 million dollars in balance sheet debt”
Such a crappy company now and clearly a scam.
Used to be a fairly easy company to invest in.
Now it’s just a dilution based Ponzi scam that has screwed, is screwing, and will screw common shareholders.
It is so bad that Wright is selling shares.
He sold 37,179 @ $6.01.
He collected nearly a quarter of a million dollars on that sale.
Tell me...and don’t make excuses because you don’t throw babies out with the bath water...tell me...how is it a good thing that an executive officer of the company who is supposed to have faith in their stock sells their own stock?
It’s not like he ONLY owns PEIX.
Why not sell Amazon or Tesla or Darden foods?
The stock had a stellar year. He’s not selling it for tax losses.
There is no way that this can be spun as a positive.
YOU DO NOT SELL CLOSE TO 1/5th of your ownership unless it’s your way of putting your favorite kid in a lifeboat before deciding who’s next in the lifeboat.
Fantastic!
I love not being wrong!
Nothing! NO AMOUNT OF “good news” can compete with a share offering that is so massively dilutive that it should be criminalized.
Sub $6.00. Yesterday was a low of $5.41. I wonder if it will try to hit that again today or just keep bleeding for a while before falling below $5.00 on it’s way to $1.00.
Man this is HILARIOUS!
So they just sold their Burley property BUT KEPT the Ethanol Plant that they have yet to restart and they got $10,000,000.00 for the sale.
They stated that they used all $10,000,000.00 to pay down debt.
This should be good news.
Yet the stock is under pressure.
As worldwide Covid Cases soar and PEIX started producing disinfectant grade and specialty alcohols the stock remains under pressure.
Canada just said last week that they are going to raise the amount of ethanol in gasoline to help save the planet.
This should be good for PEIX too.
None of this good news is outweighing the fact that PEIX just diluted the common stock to the tune of TENS OF MILLIONS OF DOLLARS!
Wanna know why your stock is falling?
It’s because PEIX Management doesn’t care about the common stock...it’s a piggy bank for them that they use because they can’t make better day-to-day operational decisions.
I’ve said it before and I’ll say it again...
If you (yes you) are running a business in the red every month it’s time to start looking very critically at where the cash burn is.
If the cash burn isn’t in the lemons, and not in the sugar, and not in the water, and not in transportation then it may be the person collecting the money. It may very well be PEIX management getting fat paychecks and doling out stock rewards like Monopoly money.
Ummmmm
No
Their 52 week high is $11.44
I have no idea what discount Robin Hood brokerage you’re using but it was $11.44
The rest of anything you said I didn’t even read
PEIX is supplying millions of dollars worth of specialty alcohol products and has lucrative contracts signed going forward into 2021.
You're the world's best trader if you make up your own numbers. Highest sale on TDA chart was $10.83 on 10/19.
PEIX is re configuring their plants to produce more alcohol products.
PEIX has cash in the bank and no toxic financing.
A ticker change is in the works to match the company's new strategy.
As the 3 analysts stated -- all up from here.
You just want to spread fear in order to collect more of these cheep shares.
Go PEIX$
Oh?
So three got it wrong?
Because this was DOA (dead on arrival... did you know that 11:44 is ten code for dead here in San Diego?
That’s why I sold at $11.02 from going long at $3.30 and have only done quick trades since.
Was blown away at that massive share placement... sheeesh what a kick to the nuts for true believers.
That revenue?
Holy crap!
I thought they were supposed to be selling hundreds of millions of dollars worth of hand sanitizer alcohol.
Good luck here... the dilution of that offering is going to sting.
Bwaaaaaaaaa haaaaaaaaaa
Sheeeeessh !
What’s it like to lose that much on a stock after you bought off on a conflicted interest analyst saying that a stock should go to $16.50?
This is hilarious!
I wonder if PEIX will revisit session lows?
who lost a lot of money lollll...its a sub penny stock...never invested enough to make a dent in anything...
Ur cute thou...
Ohhhhhh they made my day.
They made my day because I was right all along and you were wrong and lost a lot of money.
Just like you’re losing in PEIX.
Sorry you’re so bored that this occupies your time.
Take care toodles
if those made your day, then your life is much worse than once believed...Love that you follow me thou...Enjoy your weak body and mind...
Haaaaaaaaaaa
Yeah
You took quite the beating on it too.
It was so funny to watch you go from uber bull on SFOR to lashing out on Twitter.
Those tweets and your conversion in here made my day.
i left sfor long time ago sweetie..
Bwaaaaaaaa haaaaaaaa
You should be shorting PEIX.
I wouldn’t touch SFOR with a ten foot pole.
Always the same with those clowns;
“Sometime next quarter will be pivotal”.
I’ve rotated into some great short plays.
The Nasdaq and S&P and the DJIA.
Try to keep up
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