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[candeeman]

PEIX Article from Seeking Alpha

Pacific Ethanol Inc (PEIX), the leading West Coast marketer and producer of low-carbon renewable fuels, announced its December 2011 quarterly report after the market close yesterday. Revenues are rising rapidly, including 53% year-over-year revenue growth to $134.3 million in the December 2010 quarter, and the company is targeting 200 million gallons of annual production at its plants in the short- to intermediate-term.

However, gross margins in the December quarter were less than 1%, worse than both the prior September 2010 quarter gross margin of over 8%, and the 2% gross margins in the year-ago December 2009 quarter. As such, although revenue growth is promising, it will be difficult for the stock to outperform unless gross margins improve significantly.

The company recently emerged from bankruptcy in June 2010, after trading as high as $44 at well over $1 billion market-capitalization pre-bankruptcy in 2006, and is still working on strengthening their balance sheet that currently includes $9 million in cash and cash equivalents and $125 million in long-term debt. Institutions have been unloading the stock recently, with 44 institutions holding a total of 6.4 million shares, or 7% of the shares outstanding, down from 8% in the prior period. The stock is also heavily shorted with 8.7 million shares or 11% of the float shorted. The company's conference call was scheduled for 11am EST today.

http://seekingalpha.com/article/260693-how-do-telestone-technologies-and-pacific-ethanol-look-after-earnings?source=marketwatch