Penford Corp (NASDAQ:PENX)
A developer, manufacturer and marketer of specialty natural-based ingredient systems for industrial and food ingredient applications.
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The fundamentals are a bit shaky, but divestiture of Australian and NZ subs as well as organic research will help Penford turn the corner.
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will be re-addedd to russel 2000 either during this year or by year's end when reshuffled - innovative and ready to pop-
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PENX has divested of cash-hungry Australian and New Zealand businesses, plus the flooded plant is behind them. Leaner, meaner and entering an economic recovery, we'll see continued performance improvements both near and long term.
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Heavy insider selling underway and the stock is extended 40% above the 50dma. Overvalued company that is saddled with a large amount of LT debt.
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This company will be producing 40 million gallons of ethanol by the end of next year. The core business is making starches for paper products, and switching part of their plant over will have minimum cost, and will show profit faster. Watch this company good things happening.
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Penford makes specialty starches for the paper and textile industries. It processes a lot of corn to do this. Ethanol production is on their radar for 2007 with expansion of an existing plant.Penford is alreadyvery profitable and this very timely move should make sales and profits soar in 2008
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