Alto Ingredients Inc (ALTO)

[sterlingkuning]

Insider buying PEIX

Pacific Ethanol (PEIX) produces and markets low carbon renewable fuels in the western United States. On Nov. 2, CFO Bryon McGregor bought 15,000 shares and added another 10,000 shares on Nov. 4, while board director Larry Layne bought 100,000 shares on Nov. 2 as well. This strong insider buying is encouraging and so are some of the valuation metrics trading at a paltry .03x P/S, .2x EV/S, and 1x P/B. However, the operating history is simply ugly where the company lost approximately $8M in net income and $37.5M in FCF this past year and sports an ugly negative 34% ROE. However, there still is a viable market for ethanol and the downside for PEIX is limited while the upside is great. Moreover, the strong insider buying is encouraging so I'd give this a very speculative buy.

http://seekingalpha.com/article/306637-7-stocks-with-strong-insider-buying