Alto Ingredients Inc (ALTO)

[Chicago-Paul]

You as missing A LOT of data in your analysis:

1) PEIX is PROFITABLE. PEIX is making over $1/Share EPS. Please read the Q2 and Q3 10Q's for details.

The Average P/E Ratio on the Stock Market is 15.86. So take the $1/Share EPS and multiply it by 15.86 to get the value of PEIX.

2) PEIX issued shares in order to pay down it's 15% Interest Rate Debt. PEIX will be DEBT FREE in a few more months. (See 10Q's and Press Releases for details).

Yes, PEIX now has more shares outstanding due to the offering. BUT they also have less INTEREST EXPENSE because they no longer have debt.

When you exclude the Interest Expense and include the offering shares into an EPS Calculation - you will realize that the offering actually INCREASES EPS!!

Less Interest Expense = More PROFITS.

Keep on shorting PEIX and you will find out what all this means (the hard way).