Replies to post #47663 on Greenshift Corporation (GERS)

[twaflyer1]

Dutch, we are interested in Gers increases in PPS, not PEIX as you seemed to suggest?

[Harry Winston]

PEIX never showed any action related to court descissions, and also I don’t think many shareholders know about it.

Yahoo says that well over half of the Pacific Ethanol shares are held by institutions. They also say that well over half of the float is also held by institutions. The precise percentage is over 60% in both cases.

Many of these institutional shareholders knew about the court decisions because they had attorneys or other representatives inside the courtrooms who told them within hours what had happened. You, as a small shareholder, are an exception, not the rule.

IMHO, the lack of a reaction in the stock price to the motions and court orders is a sign of the long-term focus of these institutional investors. Their share totals are at least ten times larger than your total. It is impossible for them to double their holdings or to cut them in half within one trading day.

The best "due dilligence" that some of these institutional holders can hope for is to do a lot more analysis than any small shareholder can do. That includes attending the investor presentations that are hosted by the large brokerage houses and being on the phone for the conference calls the day after the quarterly earnings are released. That also includes making phone calls to some of the company officers. Because these people are institutional investors, some of these phone calls will be answered. Some of their questions will also be answered. These institutional investors can also visit the manufacturing facilities that PEIX and other companies have, in order to ask questions of the plant managers and other local people.

The information that these institutional investors receive is not insider information. It's the result of hard work done quite legally by organizations who have the financial resources to fly someone somewhere for a one-day event like an investor conference. The expenses of these events would include two nights in a hotel, a round-trip airplane ticket, ground transportation, meals, and perhaps an extra amount for some entertainment. The institutions that own a double-digit percentage of the stock of PEIX and other companies can afford to do this. You may not have such financial resources.

The immense benefit from having this up-to-date and factual information is that these institutional investors can afford to take a long-term view of the stocks they own, so the short-term fluctuations in the price of the stock. Even when PEIX has a very volatile three-month trading history, they know, because of their up-to-date information, that their investment is a good one.