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Pacific Ethanol Inc (Public, NASDAQ:PEIX)

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  1. [verwijderd] 8 januari 2015 23:11
    Ethanol acquisition is largest Sacramento takeover in years

    By Dale Kasler

    dkasler@sacbee.com

    01/08/2015 11:45 AM

    It wasn’t that long ago that Sacramento’s Pacific Ethanol Inc. was running low on cash and struggling to lift its production plants out of bankruptcy. Now it’s strong enough to buy a Midwestern competitor in one of the largest takeovers by a Sacramento company in several years.

    As announced last week, Pacific Ethanol is buying Aventine Renewable Energy Holdings Inc. of Pekin, Ill., in an all-stock transaction. The deal will more than double Pacific Ethanol’s production and marketing capacity and transform the once-moribund Sacramento company into the fifth largest U.S. ethanol maker. It also will significantly expand Pacific Ethanol’s geographical reach, from its current West Coast orientation to the Midwest and the East Coast.

    The cost of the acquisition will depend on the price of Pacific Ethanol’s stock when the deal is completed, sometime in the second quarter. At current pricing, it will be a $160 million deal. That makes it the costliest acquisition by a Sacramento company since Aerojet’s parent GenCorp Inc. purchased Pratt & Whitney Rocketdyne in 2012 for $550 million.

    Pacific Ethanol’s purchase is a testament to the company’s comeback. In recent years, as ethanol prices recovered from a severe slump, the company regained control of its production plants and whittled down debt. It earned $8.8 million on sales of $851.3 million in the first nine months of last year, the latest data available.

    “With a strong balance sheet, we were able to take advantage of opportunities to grow our business,” said founder, President and Chief Executive Neil Koehler on a conference call with investment analysts this week.

    The deal comes as ethanol prices have tumbled sharply of late, the result of over-supply. That’s depressed Pacific Ethanol’s stock price considerably. But Koehler said the industry is stabilizing.

    “We think it’s a very opportune time” to make an acquisition, he said in an interview Thursday. “We continue to be absolute believers in the future of ethanol.”

    The steep plunge in oil and gasoline prices has helped the U.S. ethanol industry by increasing fuel consumption by around 5 percent, Koehler said. Because practically every gallon of gas sold in America contains at least 10 percent ethanol, that’s increasing demand for the corn-based product, he said.

    And because corn prices have tailed off, ethanol makers’ profit margins have held up even though the price of ethanol is considerably lower than a year ago, said Rick Kment, an analyst with commodities news service DTN. “It’s a manageable, stable environment,” Kment said.

    Aventine and Pacific Ethanol have a lot in common besides the production of ethanol. Six years ago, both companies were victims of a bust in ethanol pricing. Aventine went bankrupt, while Pacific Ethanol placed its four operating plants in bankruptcy. At one point, three of Pacific Ethanol’s four plants went out of production.

    The difference is that Pacific Ethanol made a more successful recovery. All four of its plants have reopened. Of Aventine’s six plants, one was sold last spring and another remains shuttered. The four operating plants are in Illinois and Nebraska.

    “They went public shortly after we did and went bankrupt a month or two before we did, and obviously a very different tale since then,” Koehler said in the interview. “They didn’t have the strategy, didn’t have the team, didn’t have the support from lenders that we did.”

    Pacific Ethanol’s share price remains under pressure. It was trading at $8.90 on the Nasdaq market Thursday, down 20 cents.

    Call The Bee’s Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.
  2. quoteme 9 januari 2015 18:32
    quote:

    ch@rter schreef op 8 januari 2015 10:28:

    Zit jij er nog in by the weg?
    Ik denk dat je het aan mij vraagt.. Ja, ben er uit geweest en er weer in ge-trade en andere aandelen gehad (ISIS weet je nog, daar had ik in moeten blijven) maar aan de hand van de resultaten besloten dat ik juist daardoor steeds minder over hield. Nu durf ik daarom niet meer te switchen, al hoewel ik me wel wat verlies had kunnen besparen. Ik moet $15,65 halen om quitte te spelen, en ergens boven de $25 om terug te komen op mijn eerdere winst. Dus zit hier nog wel ff hahaha
  3. [verwijderd] 9 januari 2015 19:06
    Ja klopt, had wel het e.e.a. al terug zitten lezen.
    15.65 is pittig en hoop voor jou en voor mij dat we daar snel naar toe gaan.
    De 9.55 is aangetikt en over de 10 kan het weer hard gaan.

    Ze schreeuwen in elke nieuwsbrief dat de 16$ haalbaar moet zijn en zelfs 23$ bij sommigen.

    1$ + per week, teken ik voor
6.395 Posts
Pagina: «« 1 ... 284 285 286 287 288 ... 320 »» | Laatste |Omhoog ↑

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