Alto Ingredients Inc (ALTO)

[catkin]

Rule and Danke, great posts...
"Is this margin compression short term? Will margins improve during the fourth quarter? Have Corn, Ethanol, and Equity traders over-reacted? "

In my view the likely answer is yes to all three, and certainly so, in Q1 2015.
When I review my investment rationale in peix ( and Rex as well), it still remains viable, even strong.

Ethanol inventory remains normal for this time of year, when you compare sept . 14, 13, 12, ..

Inventory is decreasing and the slow down in demand likely bottoming. Margins at 60 cents or so ( as per Rules last post) still equate to 120 million$ on 200 million gallons per year for peix. Divided by 25million outstanding shares and no warrant overhang the eps can be close to $4 ( forward)( will appreciate your corrections to this very simple and guestimate math)

Give this, even a very reduced multiple under 10,due to volatility in the sector , and you still see peix up in the high 20's a year from now, or better. Is that not a hold, if not a buy??
Of course, I would appreciate your comments, especially thoughtful criticisms of my thesis, for, as always, Mr. Market is not rational these days, and WTFDIK??