News

Pacific Ethanol Bankruptcy Is Opportunity

Pacific Ethanol, Inc. (PEIX) Could See Wider Margins Thanks to Lowered Corn Prices

Published: Wednesday, July 8, 2009 @ 7:19 AM PDT

San Diego, CA 7/08/2009 

Pacific Ethanol, Inc. has been suggested as one of two ethanol holdings in a commodity-based portfolio discussion. Lower corn prices should translate into wider margins for ethanol producers. Simultaneously, if Pacific Ethanol can nimbly work through its Chapter 11 bankruptcy proceedings, shares of PEIX may actually be a longer-term opportunity.

The onset of a stimulus-induced economic recovery has already started to push commodity prices higher, including oil and ethanol. At the same time, however, the USDA has reported that 2009's forecast of 87.0 million planted acres of corn is the second-largest planting since 1947. An abundant supply will likely keep corn prices contained, if not push them lower. As such, Pacific Ethanol, Inc. and other ethanol companies may find wider profit margins.

Investors and traders are invited to review the analytical review of Pacific Ethanol and similar opportunities by subscribing to the free Small Cap Network Newsletter, which offers complete access to all commentary, market trend analysis, trading ideas and other useful market related insights by going to:
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About Pacific Ethanol
Pacific Ethanol, Inc. (PEIX) produces and sells ethanol and its co-products in the western United States, primarily in California, Nevada, Arizona, Oregon, Colorado, Idaho, and Washington. It also provides transportation, storage, and delivery of ethanol through third-party service providers. The company's co-products include wet distillers grains. It sells ethanol to gasoline refining and distribution companies, and wet distillers grains to dairy operators and animal feed distributors. The company was founded in 2003 and is headquartered in Sacramento, California.

Forward-Looking Statement: This press release may include or imply "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.

Small Cap Network is not a registered investment advisers or broker/dealer. Small Cap Network makes no recommendation that the purchase of securities of companies profiled in this website is suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for many of their securities, investing in such securities is highly speculative and carries a high degree of risk.

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Source: Small Cap Network

http://community.smallcapnetwork.com/Small-Cap-Commodities-Ready-to-Reinflate/s/article/view/p/mid/1/id/132/

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