While the overall market continues to plunge with oil prices, one stock which seems to be taking a bigger hit than all the others is Pacific Ethanol Inc (NASDAQ:PEIX). As oil prices fall investors worry that demand for ethanol will collapse. While this likely won’t be the case over the long run, the market is clearly spooked and looking elsewhere for potential profits.
Shares of Pacific Ethanol Inc (NASDAQ:PEIX) are down approximately 45% since the start of 2016, and down over 80% since reaching a high of $13.70 back in May of last year. While earnings are expected to pick up over the second half of this year it appears that investors are still skeptical that the company and withstand a possible prolonged oil glut. With a price/book value ratio of 0.33, it’s hard to imagine anyone losing money in this stock over the next couple of years.
The stock is down 14.79% or $0.46 following the news, hitting $2.65 per share. Approximately 431,936 shares traded hands. PEIX shares have declined 71.31% since June 15, 2015 and are currently downtrending. It has underperformed the S&P500 by 62.44%.
The institutional sentiment increased to 1.76 in Q2 2015. It’s up 0.84, from 0.92 in 2015Q2. The ratio improved, as 21 funds sold all their Pacific Ethanol Inc shares they owned while 21 reduced their positions. 20 funds bought stakes while 54 increased their total positions. Institutions now own 25.88 million shares which is 34.08% more than the previous share count of 19.30 million in 2015Q2.
Candlewood Investment Group Lp holds 37.76% of its total portfolio in Pacific Ethanol Inc, equating to 6.96 million shares. Vertex One Asset Management Inc. owns 1.14 million shares representing 1.01% of their total US portfolio. Moreover, Thomson Horstmann & Bryant Inc has 0.7% of their total portfolio invested in the company, equating to 1.10 million shares. The Texas-based Rr Advisors Llc has a total of 0.27% of their portfolio invested in the stock. Lucus Advisors Llc, a New York-based fund reported 68,765 shares owned.
Pacific Ethanol, Inc. is a producer and marketer of low-carbon renewable fuels in the Western United States. The company has a market cap of $112.67 million. The Firm also sells ethanol co-products, including wet distillers grain , a nutritious animal feed, and corn oil. It currently has negative earnings. Serving integrated oil companies and gasoline marketers who blend ethanol into gasoline, the Company provides transportation, storage and delivery of ethanol through third-party service providers.