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Waterloo85

05/10/14 1:10 PM

#25179 RE: kel3 #25176

It is in the range of 1.5-2.5 cents per gallon. As it is a percentage with minimum and caps. Those are the caps.

They lose money on the business in times of steadily decreasing ethanol prices and get windfall gains in an increasing quarter. In average they earn about $1 million a quarter from this business. The swings in-profitability is they cannot eliminate complete exposure from price as they are selling spot and have a few days of exposure for each transaction. This is detailed in their annual report if you need more information.

tika1

05/10/14 1:11 PM

#25180 RE: kel3 #25176

It seems ethanol price fluctuates then earning( loss) from third party sales vary. There is real possiblility to bear loss from third party sales if ethanol price goes down a lot. This is my speculation.

I have added a lot of shares around this price. I hope we will see steady increase in PPS.