Replies to post #24721 on Alto Ingredients Inc (ALTO)

[ID Supermoney]

The thing one has to remember is that the write downs were done by March 31, 2014!!

Which means they must have had the cash at that time already!! To pay them off!! And knew the books at that time for Q1!!


So $15 million was left over to pay!

Cash as of Dec 31 $5.1M
Warrants exercised in Q1: $12.1M
Less debt reduction: $32.0M

PLUS say Non-cash write down: ($16.8M)

That makes me think earnings was at LEAST $31 million and likely more!!

I think around $35 million!!


GLTA

ID

[ADVFN_jk1550]

The difficulty I have with estimating 1st qtr performance is the fact that it is almost impossible to get a fix on sales.
How much product was sold with PEIX acting as sales agent. Given the problems with transportation in the 1st qtr can we still assume the split between production and agency sales would be 40-60? what pricing strategies were involved in the sale of production goods?
Spot pricing, long term contract pricing,hedging ect.
How will warrant conversion numbers be calculated as weighted to time or on straight line average basis?
It seems like input risks are not going to be a factor this year.
On factors that would influence cash flow what would it cost to refinance the current outstanding loans now that the company has reduced the figure substantially and at what rate - most likely less than half the rates we currently pay.
Restarting Madera is the best use of resources
Buying outstanding balance of ownership is the next best thing
Notwithstanding all the above I believe margins would average out around $1.20 and the earning per share figure will be 25-30% above 4th qtr numbers.