Value Microcaps Junior Energy

[wadegarret]

Bobwns- PEIX

I personally have my doubts that we'll have many chances to buy PEIX in the $12s or lower between now and when Mar qtr earnings are announced. I mean we aren't the only ones who know that the company could post $3.50-$4.00 for 2014. Staying at $12 is like getting the stock at a 3.0- 3.5 PE going forward untaxed. I doubt investors will let it stay this cheap for very long, and I really don't think they need to see the Mar qtr numbers to believe they could post $.80+, and $1+/qtr when their additonal factory goes into production in the June qtr.

Also as R59 pointed out, the in the money warrants will be accounted for by the treasury method, so I don't expect more than 3M-3.5M shares additonal, which would be less than 20% dilution. To me, PEIX is a no brainer, and is a strong buy in the $12s. Bobwins if I had to guess, I believe PEIX will be at least $20 before the Mar qtr is announced.