PEIX - Pacific Ethanol: Trying To Value Unprofitable Assets
Earlier this month the share price of U.S. ethanol producer Pacific Ethanol (PEIX) rallied by nearly 60% to $3.15 on the news that the Trump administration was about to announce that it would begin allowing the sale of E15 (a 15 vol% blend of ethanol with gasoline) year-round. It quickly reversed direction and fell to $2.36 afterward, however, at which point I argued in a Seeking Alpha article that investors should be focusing their attention on the company's and broader industry's consistently-low production margins rather than on the unlikely prospect of a 50%