Pacific EthanolPacific Ethanol (NASDAQ: PEIX) is an American biofuel manufacturer based in Sacramento, California. It produces and markets carbon renewable fuels, including biomass ethanol.

Mainstream investors have lost confidence in the biofuel market, but this doesn’t mean that alternative investors should stop engaging. President Trump failed to come through with relief for biofuel producers, with the EPA leaving its blending mandate unchanged for the year ahead. However, demand for biofuel continues to grow, and this could be a boon for forward-thinking investors.

Biomass ethanol blends can be used in conventional gasoline engines without modification. Efficiency and performance are increased with a 10% ethanol blend. This means that producers don’t need to market their products as complete alternatives to standard gasoline. The market for biomass ethanol is expected to grow by 5% between 2019 and 2024. The United States is the largest global consumer. Biofuels are used extensively in the transportation industry where operators enjoy performance increases and lower emissions.

Pacific Ethanol isn’t a strong performer in the stock market today, but it’s a bargain with plenty of opportunity to grow. A low volume investment could set up strong returns with little fiscal risk.

Key Data:

  • 1 Year Price Growth: -68.10%
  • YTD Price Growth: -32.95%
  • 3 Month Price Growth: -8.57%

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