Alto Ingredients Inc (ALTO)

[Rule_62]

PEIX sells to major distribution terminals. They then resell, including to small independent blenders. So the terminal price is the price for ethanol delivered to the terminal. The rack price is what purchasers from the terminal pay.

In the various presentations they've included it in, PEIX is very clear about using the Cal terminal price for estimating their plant margin. Mind you Kinergy does market beyond California, and it's also likely some percentage of their sales goes to independents would would likely pay a premium. However, ever since I started keeping track of that terminal price and averaging it over the quarter, it's worked out pretty close so far. PEIX has come in a little above the terminal price, but rack price tend to be 15-20 cents higher than the terminal price.