Long
Considerable buying activity at historic PEIX lows.
Without a doubt PEIX is likely the most undervalued Energy stock on the market. With increased revenues from the Aventine merger the potential for boosted profits are around the corner. The next 2 quarters will be the company's strongest and will remind investors to the true value of the stock. On a technical analysis front, the stock has broken almost all support levels and is now resting on historic bottoms. This presents an interesting opportunity for a long position or adding to one's existing position.
The risk reward potential of the trade is favourable. A considerable amount of buying activity at the lows of January 20th. The panic sell situation would be too good to pass up to cover short positions and expect the short interest to decrease considerably. The next few weeks should be a slow and gradual rise PEIX. As the stock breaks thru the 4 resistance lines R1 R2 R3 and R4 the volatility in the stock will increase.
The risk reward potential of the trade is favourable. A considerable amount of buying activity at the lows of January 20th. The panic sell situation would be too good to pass up to cover short positions and expect the short interest to decrease considerably. The next few weeks should be a slow and gradual rise PEIX. As the stock breaks thru the 4 resistance lines R1 R2 R3 and R4 the volatility in the stock will increase.
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