Bought more at $2.50 myself...too many potential tailwinds for this stock IMO to be at a 52-week low. RFS proposals didn't decrease at all, with all the fire Pruitt has been under (including lawsuits), his refiner exemptions should basically be non-existent any more, no-reason-not-to-be-approved cellulosic ethanol production at other 2 plants, exports off the charts with no signs of slowing, and all these capital expenditures will start to pay off (selling of CO2, the huge solar panel array to tremendously reduce energy costs + solar energy tax credits), and as always, let's not forget the current ~$.12 CARB credit for every ethanol gallon they sell in CA, and pretty soon OR, and that only looks to be increasing. And as of recently, oil prices have been skyrocketing, and many analysts see it continuing to closer to $90 a barrel, that can only bring the price of ethanol up as it is so much cheaper (and historically they rise/fall directly proportional) How this stock cannot see $5-$6 bare minimum SOMETIME before this year ends would absolutely befuddle me, which represents a double on investment. Obviously, high side is more around $10 potentially.
The 2 investment phrases I love to live by are:
Be fearful when others are greedy, and be greedy when others are fearful.
Don't buy any stock you wouldn't be willing to hold for at least a few years.
I have no problem holding this stock, as ethanol isn't going anywhere, and i'm going to be greedy since others are apparently fearful as evidenced by the stock price. Sure eventually the electric car market will start to impede, but lets remember that currently they are not affordable/practical to any but the upper middle class and higher (generally speaking), and we are but one country in the world, most of the other world cannot even begin to imagine affording those, and they are just NOW catching up to the rest of the world by implementing ethanol standards for their gas. The little effect electric cars may have on U.S. and the handful of other developed countries that can support them is WAY offset by the rest of the world catching up by reducing oil consumption by supplementing ethanol.
DISCLOSURE: I've been visiting this forum for years...regularly. I don't post much, but constantly follow, and been on and off PEIX for the last 5 years, through the dark penny days and through the $24 glory days haha.
