Alto Ingredients Inc (ALTO)

[Rule_62]

Keep in mind that number is a gross number on goods bought and sold. It doesn't include plant operating costs. If you pay attention to the formula, you can look back on past quarters, plug in the numbers for those quarters, and see how the current margin for Q4 stacks up. Of course you'll also have to make some allowances for debt no longer carried, large chunks no longer being carved off for 3rd party ownership, etc.

There are variables that make the overall profitability for Q4 difficult to predict. At this point I still have Kinergy turning a slight profit for the quarter, but the last 2 weeks have kicked the stuffing out of what was until then by all appearances some very good numbers. I also see PEIX in the black overall. Compared to the PEIX of a year ago, I think they're very well positioned. However, the continuing pressure on corn prices isn't helping. This isn't going to be a record earnings quarter by any stretch of the imagination. At this point, I suspect it'll be a modest one. But no longer is it a company being crushed under a mountain of debt. It's a company positioned to ride out the ups and downs of the industry. From that perspective, if the market wants to continue to sell it down, that's just fine by me. I'll be waiting, and as it turns out, will have some significant funds to buy in a few more weeks.