Alto Ingredients Inc (ALTO)

[value1008]

OT-- REX American Resources ethanol player-- OMG, they hit it out of the park!! This one should be a 60-70% gainer in next few weeks and should well more than double by next earnings report in Sept.

Posted EPS of 2.66 for Q1, far beyond my estimate of 2.05.
Added $20.5M in cash, far beyond my earlier estimate of $15-$16. Reduced debt by another $8M. In 20 months, they should have around $270M in cash/equivs and ZERO debt-- presently at $120M in cash/equivs and just around $55M in debt.

They averaged over $9 in natgas costs, way above normal, b/c of the severe price spike in Winter, and yet it hardly hit their profit margin b/c of the crush spread. Think what this co. can do for Q2 with natgas prices at normal levels.

This is just tremendous. They should do well over 10.00 in EPS this year, well beyond my earlier projection of "nearly 9.00."

http://seekingalpha.com/pr/10040343-rex-american-resources-first-quarter-diluted-eps-rise-over-six-fold-to-a-record-2_67

Join us on the IHUB REX board for more.