Why Pacific Ethanol Stock Just Crashed 9%
Pacific Ethanol (NASDAQ: PEIX) is the little engine that could -- as in, it could transform its business from a low-margin maker of gasoline additives into a high-margin producer of alcohol for disinfectants and hand sanitizers. That coronavirus pivot is the reason Pacific Ethanol stock has soared more than 1,300% over the past year. Sadly for investors, it's also the root cause behind the company's decision to release a large secondary stock offering and the reason the stock was down 8.8% at 10:40 a.m. EDT today.
Image source: Getty Images.
In a surprise announcement Monday afternoon, Pacific Ethanol said it will change its name to reflect its new corporate focus on the production of "specialty alcohols and essential ingredients" for the fight against the coronavirus. (The company doesn't seem to have settled yet on a new name, however.)
Source Fool.com
