Yes, PEIX did take a dip due to dropping oil prices, election year etc, but I still say that this is a great long term play. GM already has millions of cars that are compatible with 80% ethanol and 20% traditional fuel. At the moment, ethanol is only being delivered in the US as a substitute for a less envirnmentally friendly additive in the high-octane fuels. The real demand will not kick in until we see prevalent 80/20 pumps.
I was bullish at 20 and am confident that it will return to this level even if gas prices do not swell. The fact that we can obtain this resource domestically and that it burns cleanly and has millions of compatible vehicles on the roads already is compelling.
BTW, PEIX will finish their new refineries in 06 and 2nd Q 07
$25.69 (06/06/06)
