Alto Ingredients Inc (ALTO)

[Rule_62]

Well from what I've read, the cost to build a generic 50M gal/year capacity ethanol plant in 2007 was around $2.25/gallon.

PEIX has 4 plants, (2-40 & 2-60M) so the valuation on replacement cost for the plants would be somewhere in the range of 200M x $2.25 = $450M. That's without the additional upgrades (corn oil extraction, etc.)

Note that Vertex One says they like to locate companies with undervalued assets on their books. Now take a look at the value of PEIX's plants on their books. Property and equipment are valued at $155,771,000 (keeping in mind they don't own 4% of the plants would only add another 6.23M to that valuation).