Alto Ingredients Inc (ALTO)

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Worked through the last 4 published quarters of PEIX and re-worked them doing the following:

- Get rid of Loss on extinguishments of debts
- Eliminate Fair value adjustments and warrant inducements
- New Interest expense of 1.1 M per quarter
- O/S of 25.3 M (assuming conversion of eisting warrants)

Once done this we could take a glimpse on what actual net income for PEIX would look like IF (big if, yes) margins remain the same for the next 11 months as they were in the previous 4 quarters.

What I get is: 3Q14: 25c, 2Q14: 59c, 1Q14: 79c, 4Q13: 33c so 1.96 total

Slap a 10 times PE and we get a 20 bucks stock easy.

Current 12m trailing PE for GPRE is 9,79 and REX´s 8,54. But this is after a smackdown on ethanol margins and very negative sentiment on ethanol stocks.

GPRE balance sheet is in worse condition to PEIX´s and REX´s.
REX a better buy than GPRE. PEI would be trading now at 7.20 forward earnings PE.

All in all 10 PE seems doable. PEIX should be the better buy of the 3 considering the forthcoming rail transport situation which will benefit PEIX big time as opposed to GPRE and REX.

Comments anyone? Does this look reasonable or did I miss something?