Zeev's Turnips Patch-No Politics (ZEEV)

[yossarian67]

not even close....Gates via Cascade Investment's avg per share of common stock is $8. Cascade purchased 5.25 million shares of preffered stock for $84. The preffered is convertible into 2 shares of common for each preffered....or 10.5 million shares.

The purchase price is really 10.5 million shares of common stock for $84 million or $8 a share.

Cascade invested $84 million for a stake in PEIX that is worth at close Friday approximately $237 million.

Crown gone? well if a triple on your investment is a losing bet then you must be quite good.

I'm quite wary of these ethanol plays so please don't start hounding me as if I'm plugging anything. just clearing up the Cascade investment, seems to be a huge misconception out there about price per share paid. It is $8 and that is a fact.

one big issue I've with ethanol is their valuations are completely out of whack going forward 1-2 years with their end market, the gasoline refiners --- that can often end badly for the suppliers trading at much higher multiples all things being equal.