Yeah, while there are no certainties in the stock market, there is pretty much no earthly way this goes anywhere near $1. If you remember back shortly, as i do, post-split PEIX hit about $2.30, which at that time felt stupid low and that was when they were 40% the size they are now, and corn was $5-$6. Everyone said the same thing then, this stock is falling, don't bother, its dead...etc. It wasn't even a year later and it had skyrocketed to $20.
That being said, I don't see it skyrocketing to $20 like it did then, at least not that quickly, but for certain once they get all this merger hammered out and running optimally and hedging corn at this low price, the share price will recover back to around the $10-$11 mark with more potential upside. Right now, people are either panicking/frustrated/shorting-for profit and its killing the share price unfairly. At a market capitalization of $191 million, this is is severely undervalued unless you HONESTLY believe they are going to tank and fall into bankruptcy. While I agree the management hasn't always been top-notch, they are not complete idiots. They didn't spend $184 million expanding when their books looked great before if they didn't think/know it would pay off, and with oil around $40, its the same depressing factor that the corn skyrocket had. With these companies, outside commodity factors will always cause swings in the stock price, and for some reason PEIX always seems to magnify any fluxuations, not sure why.
I saw some of you guys in at $7.50, in at $15.20....well i'm in at $11 and while i promise i do get as frustrated as you guys do sometimes and stuff just doesn't make sense, I just remind myself that I'm long. That means I have a 2 in the first digit of my age, I have nothing but time, and the money i have invested is just that, money INVESTED, not money I need for spending, so even though I'm down, I haven't lost a dime because I'm holding. Back when this hit $2, I was still fairly new to investing and had essentially written off my entire investment in this stock as a complete loss and was starting to think about other stocks, but I held and held and I was rewarded with the skyrocket to $20. I sold some, then more, then got back in at $11, so i'm not worried at all, give the market some time. ALl the stuff they are doing will eventually come to and will make for nice profit and the market will realize that and adjust the share price....eventually.
I am considering buying a little more now to bring my cost-average price down, especially if it flirts with the $4-high $3 range, it won't go much further than that, if even at all.
