Pacific Ethanol JUMPS 8.29% on zero news - Why you ask? (PEIX)

PEIX for July 14th, 2014

Well, today we see another HUGE jump prior to Quarter 2 earnings coming out on July 21st, 2014.

What happened today for Pacific Ethanol? Why the big jump for Peix?

Likely what we're seeing is two fold.

1. Traders are getting in before the BIG jump up that's set to occur on the 21st when the quarter one earnings report comes out.

2. July 19th is the Options strike date for this month and the last day to trade the option and cover your sell options is Friday, so there may be some attempt to drive up this price so people can cover their sells.

Likely though, most of this action is due to #1. The average trade volume was closer to 500,000 for the last 10 days and now that we're a week away from earnings expect to see heavy trading like today. Today's volume was four times more than the average. That's a LOT of people trying to get in before the earnings report because the smart money is on this stock going way up.

What is PEIX worth? Where is the stock going in the near and long term?

Short-term, expect PEIX to jump to the $25 to $30 range in the couple of days after earnings report on the 21st. Then we expect to see a pull back going as low as the $20 range due to most people taking their earnings.

Once it stops the bleeding in the low 20's range, people will buy back in and Pacific Ethanol should be to $40 stock price range in 4 to 6 months.

I'll be selling somewhere around $30 and buying back in at $20, then selling again at $40.