Alto Ingredients Inc (ALTO)

[Rule_62]

This hits it dead on

So, the question becomes: Why does GPRE trade at $40 and carry a 12.5 P/E and PEIX trades at $18 and carries a P/E of only 6? Clearly some misconception exists between investors perceptions of these two companies. This will most likely change after both companies report their quarterly earnings. The valuation gap cannot persist at this magnitude, in my opinion, as I haven't seen one this wide in my 30 years of trading in these markets. Either GPRE will drop substantially (not likely, given the ethanol margins for the next two to three quarters) or PEIX will have to rise substantially. This is the most likely scenario.