Alto Ingredients Inc (ALTO)

[Rule_62]

I often think the inventory numbers need to be taken with a grain of salt. If I'm right about the "inventory" being what's currently held in tank farms, an unloaded train (inventory in the tank) as opposed to one that will arrive and unload the next day could be enough to skew numbers substantially. That's especially true when it comes to individual PADD's like the West Coast. I believe the average volume of a tanker car is 700 barrels, so a 100 unit train would hold 70k barrels.

Over the past 4 weeks, the West Coast inventory levels have fluctuated between 2213 and 2437k barrels of ethanol. That's a variation of 224 tanker cars, or 3.2 100-unit trains. To put it another way, assuming an average inventory level of 2300k barrels, the difference between an unloaded train and a 100 unit train in transit is approx. a 3% shift in West coast inventory.