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Re: kel3 post# 23203

Friday, 01/10/2014 1:04:49 AM

Friday, January 10, 2014 1:04:49 AM

Post# of 30377
For comparison!! For PEIX WOW WOW!!!!

To put that in context, Green Plains produces a billion gallons, so do the math: Forty cents a gallon times a billion gallons is $400 million ($400M) in cash flow. A conservative multiple of five times cash flow generates a valuation of $2 billion ($2B) for a company with only 35 million shares out. The numbers have quickly become very compelling.

Now the reality is that Green Plains is not going to realize that kind of margin because it is such an active hedger. It is willing to mitigate risk by taking a reduced margin. But the large players in the ethanol spot market are just rolling in cash.




160 million gals on 3 plants

$0.40 x 160million = $64 million x 5 x cash flow = $320 million

10 million shares in PEIX

EQUALS $32.00 a share!!!!!!


So $12.00 a share is easy and $20.00 a share within reach!!!

GLTA

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