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SC Iowa | Rex Stores (RSC)
They've been an odd duck....part of the business was consumer electronics stores competing with Best Buy, etc and then they had investments in real estate and alternative energy, primarily ethanol
Over the last year they have been in the process of shedding the consumer electronics business and will pretty much focus on ethanol..
To call them a "pure play" ethanol company at this time may be a misnomer, but they soon will be...
They all or parts of about six ethanol plants with their share of capacity being about 135 myn gallons.....and the market cap of the company is about $150 myn....
Now, if you want to talk about insanity----that would be the valuation the stock market put on Pacific Ethanol back in the early part of the boom.....they barely had 50-75 myn of operating capacity and were valued at $900+ myn......as Jimmy Cramer said one time---the shortage was in ethanol STOCKS, and the public was willing to bid for the few out there at the time.....just because Bill Gates throws some money at something doesn't make it a slam dunk winner.... | |
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Tall Corn Ethonal
