Ethanol producer Pacific Ethanol (PEIX) reported Q2 earnings last week that missed on both lines as an improved revenue result YoY was unable to prevent the company from incurring a substantial net loss. The company's share price dropped sharply on the news, eliminating the gains of a mid-July rally and bringing its YTD performance down to almost -50% (see figure). Despite the company's poor performance during a quarter in which the broader ethanol sector saw margins rebound from their Q1 lows, Pacific Ethanol's management concluded that the second half of 2018 would see