Wow! I just checked a few stocks that I tend to watch, and Pacific Ethanol (PEIX) has now fallen to $1.85 a share. It is now down more than 95% off its high, and down more than 90% from the first time I warned that the company was overvalued. Once boasting a market cap of almost $2 billion, that has now fallen to $82 million.
Now, where are all of those posters who kept telling me what a deal this was after it fell to $10? Like our friend James, who cited PEIX investor Bill Gates’ “ability to see into the future” as a reason to invest in PEIX, and told me I was “very, very stupid” if I thought the price would continue to fall. Of course Gates has recently been dumping his shares as quickly as he can (at a huge loss). Personally, as I have said before, if I want some insights into the future of computing, I would listen to Gates. On the topic of Pacific Ethanol, or for that matter any topic far-removed from his area of expertise, not so much.