Replies to post #15143 on Value Microcaps Junior Energy

[Bobwins]

re PEIX.... ugly open. As far as the warrants, I think we now know that the price rise from the qtr X the outstanding warrants is going to be about the non cash expense.

This is a leftover cost of the mad scramble to raise cash during their negative corn crush spread days. They will be stuck with these non cash adjustments until these warrants are exercised or expire. Ugly but true.

Next qtr, it's probably not going to be significant because the stock price hasn't gone anywhere. Maybe a plus, maybe a minus. Certainly not $34million bucks!

So the near term question is whether investors are excited about the possibility of big cashflow AND profits without a big non cash expense. Will the positive of Madera reopening offset the declining corn crush spread?

My options expire in mid May so I didn't sell on the open. I am going to wait and see if the conference call generates any positive vibes. PEIX has recovered to $15.19.

[cliffvb]

PEIX Decided to bail just ahead of the CC. I was surprised that the warrant charge came in so high. Ethanol margins are dropping now and I don't expect the CC to reveal any new info that will send the SP much higher than it is now. Dilution from the latest stock offering will balance out the gains from Madera and I think those new shares will also bring yet another warrant charge in Q2.

Of course, now that I sold out it will probably shoot to the moon, and good luck to those who stay in.

[Dutch1]

"Warrant situation"
explaining that could things only go up, not down.

"fluctuations in ethanol, corn, train shipments, natural gas prices"
That's the same for every ethanol company, so why would Q&A be of any influence on that?

" It was certainly a surprise to see them actually declare an overall loss/share yesterday"
It wasn't to everybody. Cleverrox did talk about it on the PEIX board already and did contact PEIX on it before earnings: The message

"As to costs, do they still have that sweet deal on cut-rate government sugar for some of their ethanol production"
From the conference call of Q4-13: Beet sugar is easily stored and blended with ground corn for use as ethanol feedstock. We are now blending the sugar in our Magic Valley and Columbia facilities, and we expect the blending to continue over the course of 2014.

So no worries here about the upcoming conference call.