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shmolton

12/01/11 3:08 PM

#8724 RE: petermic #8722

I understand this company's success depends upon commodity prices, and just like trading any stock whose success is dependent on positive commodity prices, it's good to be long the stock when the market they are in is favorable, which it is now. They are usually not long term buy and hold companies, but great for swing trading. With oil prices still climbing, I don't see it as time yet to be short ethanol companies, but I'm sure that time will come again, as it does with all commodity price driven stocks.

sashex001

12/01/11 3:10 PM

#8726 RE: petermic #8722

I have a question for you, you do not have to answer publicly but be honest with your self.

If you were the CFO of PEIX and you thought the ethanol market was not going to lest, would you approve spending the first profits PEIX made in three years getting deeper in to ethanol?

bullmarket2222

12/01/11 3:35 PM

#8730 RE: petermic #8722

The strategy is solid.

But your implementation is poor, I would be working on the futures contracts and figure out at point PEIX would become unprofitable.

Now, I'm sure they hedge so it could be a really tough call.

You would be better off shorting the futures on EH.

BULL