PEIX - Why Pacific Ethanol's Shares Jumped and Then Slumped on Friday
Shares of Pacific Ethanol (NASDAQ: PEIX) were up by as much as 11.1% in early trading Friday, continuing a great week for the stock. But most of those gains didn't last long, and by the close of the trading day, the stock was up by just 1.1%.
Pacific Ethanol's stock has been on an incredible hot streak since investors learned that the company would be surprisingly profitable in 2020. It has shifted production away from ethanol to the high-grade alcohol that is in greater demand for cleaners and hand sanitizers during the pandemic. As a result of the windfall that has resulted from that move, management now expects adjusted EBITDA of between $50 million and $70 million this year, with "momentum continuing into 2021."
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