Alto Ingredients Inc (ALTO)

[cropdoc81]

PEIX has announced a R/S which will likely result in further erosion of it's SP, and is coming off a year where it's market losses cannot be totally attributed to the issues facing ethanol producers in general as many plants, companies managed to break even or make money. Very few lost the kind of money that PEIX did which suggests more serious underlying problems with it's business structure and management. PEIX also has the problem of share dilution which like GERS is destructive to SP.

GERS on the other hand has turned the corner when it comes to revenue and profitability and is not near as exposed to the commodity market whims as PEIX. As long as ethanol plants keep producing ethanol GERS will have a solid revenue stream which has been and will continue to grow with additional customers.

So in balance I'll take ownership in a stock with a company that is growing and making money versus one that is losing money by the handfuls and struggling to survive, regardless of the stock price history.