Trade-Ideas LLC identified

Pacific Ethanol

(

PEIX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Pacific Ethanol as such a stock due to the following factors:

  • PEIX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.8 million.
  • PEIX has traded 108,801 shares today.
  • PEIX is trading at 2.52 times the normal volume for the stock at this time of day.
  • PEIX is trading at a new high 6.08% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on PEIX:

Pacific Ethanol, Inc. produces and markets low-carbon renewable fuels in the United States. The company operates through two segments, Production and Marketing. Currently there are 4 analysts that rate Pacific Ethanol a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Pacific Ethanol has been 680,700 shares per day over the past 30 days. Pacific Ethanol has a market cap of $290.3 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.34 and a short float of 16.2% with 4.69 days to cover. Shares are up 42.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pacific Ethanol as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, generally disappointing historical performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:

  • The gross profit margin for PACIFIC ETHANOL INC is currently extremely low, coming in at 4.19%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.20% trails that of the industry average.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PACIFIC ETHANOL INC's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • PEIX has underperformed the S&P 500 Index, declining 9.97% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • PACIFIC ETHANOL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PACIFIC ETHANOL INC swung to a loss, reporting -$0.55 versus $0.64 in the prior year. This year, the market expects an improvement in earnings (-$0.07 versus -$0.55).
  • PEIX's debt-to-equity ratio of 0.61 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that PEIX's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.68 is high and demonstrates strong liquidity.

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