Opinion on  Pacific Ethanol Inc (PEIX)     Sector: Basic Materials  >  Industry: Chemical Manufacturing
Bullish on PEIX ...

great pickup for 08 more info later

ok heres the deal, the company has just got 24+ mil to do a cellulosic ethanol plant. previously the big problem with profit margins for ethanol producers previous to this technology was variable corn prices. Now u eliminate that cost it will make ethanol one of the top alternatives to oil and gas and increase the bottom line for peix. By 2009 i expect this stock to be trading in the 50-100 range. Fwiw

Pacific Ethanol Among Four Companies Selected by US Department of Energy to Research Commercial Cellulose Technology
Tuesday January 29, 4:42 pm ET

SACRAMENTO, Calif., Jan. 29 /PRNewswire-FirstCall/ -- Pacific Ethanol, Inc. (Nasdaq: PEIX - News ), the largest West Coast-based marketer and producer of ethanol, today announced the U.S. Department of Energy has included Pacific Ethanol in a matching award totaling $24.32 million to build the first cellulosic ethanol demonstration plant in the Northwest United States. The plant will employ a technology to produce ethanol from wheat straw, wood chips and corn stover and will be co-located at the site of Pacific Ethanol's existing corn-based ethanol facility in Boardman, Oregon. Pacific Ethanol's partners in winning this competitive process are, BioGasol ApS and the Joint BioEnergy Institute (Lawrence Berkley National Laboratory and Sandia National Laboratory). BioGasol ApS has developed the proprietary technology and the Joint BioEnergy Institute will be providing support and specific research and development on enzyme technology.

http://biz.yahoo.com/prnews/080129/nytu149.html?.v=101

with the soaring price of Oil and high corn prices, Peix should emerge as the head in the pack, as its profit margins wont dependent on high corn prices, as Peix celluostic and sugar ethanol increase profit margins and bolster the bottom line.