Pacific Ethanol shows no signs of slowing down
Pacific Ethanol, Inc (Nasdaq: PEIX) continues to roll showing no effects of Friday?s news that they will delay the filing of their annual report and delay the closing of their financing deals with Bill Gates private equity firm, Cascade Investment, LLC and couple of banks totaling $118 Million. Although, the stock did go down on Friday it wasn’t much considering the news. PEIX closed up today showing no signs of slowing down. So the question at this point is whether the Bill Gates investment in the company priced in? Or is Ethanol so hot right now that the stock is worth owning regardless of Bill Gates investment going through? What will happen if and when the Cascade Investment deal officially closes? Is Of if the deal doesn?t fall through? An entry into this stock would be highly risky at this point. Just too many question marks.
Long term if everything looks good in the Annual Report and Cascade Investments deal is official the stock would be worth owning. Yes, it will also be back on my recommendation list.