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Re: houtheman post# 26332

Wednesday, 07/30/2014 9:59:51 PM

Wednesday, July 30, 2014 9:59:51 PM

Post# of 30377
Houtheman, if you're trying to consolidate / shorten the list, I'd suggest scratching out #2 and #8 about plant ownership percentage or buying another plant. PEIX should be like REX, "opportunistic buyers."

This is a terrible time to be buying ethanol plants or higher ownership (e.g., 100%) because of the very high premium they would pay during these "best times for ethanol producers in past several years."

For comparison, REX only has consolidated ownership of two big 115-125M capacity plants and one they own 99% and the other only 74% (and much smaller, minority ownership of 5 other plants), yet they're doing very well.

It's not about ownership right now, but optimizing efficiency and profit margins....

JMO.
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