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
