Replies to post #14815 on Value Microcaps Junior Energy

[CPTMatt]

PEIX hedging. Seems like a good thing to me to lock in these prices where they know their margin will be substantial. I can't see a business not locking in these super high prices at least for part of their production except for not being able to afford a hedge or being contractually obligated not to.

One article Kel3 posted suggested PEIX doesn't have the money to hedge in any significant way. With their huge margins right now maybe that has changed.

[cliffvb]

PEIX Why would they lock in future prices when they are so much lower than current prices? On the CBOT, may futures are 40c lower than April, and June is about 60c lower than April. They musr be happy to sell all they can at current prices.