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Tuesday, December 1, 2009

PEIX

PEIX was a company that came public during the ethanol craze of 2006, and at one point trading around $40. It has since proved to be a crap company, just now hitting a "new high" of 90 cents. I notied it yesterday when I scanned for stocks with unusual volume, and thought it might be a good "lotto ticket", but unfortunately my sense of ethics prevented me from doing so. That's probably why I don't make Goldman Sachs like money in the market.


The main problem i have with this company is I think they exist for the sole reason of sucking down government subsidies for corn ethanol (one ot the all time dumb moves ever made). They don't make money, and in fact they don't seem to be trying. They do actually have several plants now, but none of them seem to be running.

2 comments:

Anonymous said...

The reason these companies are so wishy-washy is because America is wishy-washy and short sighted.
Gas goes up, people freak out and want a new fuel. Gas goes back down and everybody forgets about the high gas prices and stop investing in biofuels and other alternatives. Its like everyone in america has ADD and no common sense, along with no scientific reasoning. Its been happening since the seventies, but no one seems to care, until gas prices are high!? We work real hard to get to a point where we can actually use some other fuel and every ignorant "art history major" says how impossible ethanol is to utilize. How we need different engines to run it, how there is a negative energy return. Misinformation and sweeping stupidity is what kills great ideas, but sometimes it just maims them as in the case with ethanol. thank you

David said...

I am in agreement with you about ethanol, I think it is a very viable solution, and if you have been reading this blog for a while, I have emphasized the role of peak oil will play in coming economic crises.
My problem is with the subsidization of corn ethanol (a clear "thanks for the campaign contributions" bone thrown to Archer Daniels Midland) rather than using something which won't drive the price of food through the roof. Brazil has no problem using ethanol, and most newer cars will run on ethanol with little or no modification. Paific Ethanol, in particular, IPO'd before they even had a functioning ethanol plant, and to my knowledge their "income" has been nearly all subsidies. My rant wasn't aimed at ethanol in particular, just at this company. I hope that clears it up. Thanks for the input.

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