Pacific Ethanol Inc (NASDAQ:PEIX)

DC pick

Getting control of debt levels, extreme revenue growth year over year, larger ownership of plants put into place last December.

If Natural gas is the way to go, then going from deisel stations to NT Gas stations will also be necessary.

i think they will once again be a major contributor in this industry. They have been through a lot in the last 3 years but i wonder if they survived and will thrive. On the Daily Graphs volumes are way up since late Oct. and on nov 11 they had 1.85 high on strong volumes. This is not my area of expertise but i am looking for the underdog.

Gasoline might become $5.00/gallon soon.

Input of fuel is far greater than the output of ethanol.

clean energy is on the way

-Coming back from bankruptcy.

-Replacing debt with equity effectively increasing the risk capital and reducing debt service pressure on cash flow. Traditionally replacing debt with equity is taken as sign of lack of confidence on expected return on capital. But it is just my opinion that in current situation it is a prudent move. Look at big banks buying back preference shares from Buffet...........they are also taking the same decision.

-Rising crude oil price will provide scope of increasing realization on ethanol.

-yes it is a bit early but outsized returns are made from identifying the tide early.

-got in immidiately after earnings release @ 0.38. accumulating more on each dip. Technically first resistance is around $2. Will take partial profit there.

-stock is hard to borrow. There is strong short interest. Translating into high interest rate you can earn by lending this stock. I received 19% interest yesterday by lending my peix to short sellers. High rate will make it hard for shorters to carry over short position too long.

Ethanol is future.

ethanol is the buisness of that company, it is that simple, quote eldrehad, i need some points to get back up to 95.

Oh look they made money in June ... err, nope. >10% mpg hit on E10. I'd rather pay 10% more and not have to deal with Ethanol's problems.

Turnaround play?

I will thumbs down ethanol until it goes the way of dowsing rods and phrenology.

rolling the dice. pick and pray

interesting stock:
low ps
but no return on equity data available

Great corn crop last fall, government mandated increase in demand from 9B to 12B, global recovery, bad sugar crops (their competition), increased price of oil will draw people to cheaper ethanol prices, there's a possibility to up the 90/10 oil to ethanol ratio to 85/15 oil to ethanol.

After all of the special interest chaff that has been thrown up, the ethanol industry is about to explode, not through popularity, but through necessity...PEIX is well positioned to exploit this explosion.

Finally I get to formalize my support of Pacific Ethanol.

There are only two companies I see making the transition from corn ethanol to cellulosic ethanol: Pacific Ethanol and Bluefire. Both will be industry leaders, but Pacific Ethanol is the only one of the two with the plant presence throughout the US to allow for immediate commercial sales once the conversion takes place.

Enter Pacific Ethanol. (PEIX) With Federal subsides approaching 600 million next year for alternative fuel producers, and the Omama administrations push for green energy,ethanol may be set to make a comeback. If oil prices head back up,this will be another potential catalyst for the battered ethanol producers. Pacific Ethanol Is re-starting production at Its once shuttered ethanol plant In Idaho citing more favorable marketing conditions. When there Is blood In the water,sometimes It Is best to swim against the tide. With the stock currently trading between 65 to 75 cents per share,the risk/ reward seems to favor the reward side..... Adding a few shares to ones portfolio of speculative stocks for 2010 seems logical to me at these price levels. It Is possible that the company could even turn a profit for the year depending on the strength of the economic recovery. I will roll the dice and add a few shares shortly after the new year starts.... This stock Is my top speculative play of 2010. Unfortunately I could not add this stock to CAPS until It got over $1.50 per share. There Is still room for this one to run though.... TS