EFTA01204510.pdf

From: Richard Kahn To: "Jeffrey E." <[email protected]> Subject: Bruce Galloway Date: Thu, 14 Aug 2014 13:03:09 +0000 Attachments: SHBRK_Scann14081316110.pdf account closed at 3,720,139.67 last night (see attached) there are 14 option positions expiring on 8/16/2014 only 4 positions have value that must be sold and all others will expire worthless: I) C 49 Calls 400 quantity bid 0.15 / 0.16 ask 6,000 value 2) PEIX 16 Calls 270 quantity bid 3.80 / 4.20 ask 102,600 value 3) RDNT 5 Calls 110 quantity bid 1.70 / 1.85 ask 18,700 value 4) YHOO 33 Calls 120 quantity bid 3.05 / 3.25 ask 33,600 value In email below Bruce is asking if he can role PEIX calls to a later month Please advise From: Bruce Galloway < Subject: PEIX CALLS Date: August 13, 2014 at 4:24:45 PM EDT To: RICH, We have a n option position expiring on Friday, PEIX . They are a premier west coast ethanol producer. Due to corn prices tanking and a bumper crop, along with firm ethanol export demand, the crush spread for them is currently .70. They produce 200mm gallons per year. At this rate the co. should make 140mm . The market cap is 440mm or 3x earnings . I feel that it should trade at 7-8X, which implies a 40-60 dollar stock price. As a result, I would like to roll the position into a forward contract. Let me know if this is OK . This is an industry thrown out for dead. The stock is down from 6500 to 20. Begin forwarded message: From: Subject: Message from KMBT_C253 Date: August 13. 2014 at 4:11:46 PM EDT To: Reply-To: EFTA01204510