Replies to post #25351 on Alto Ingredients Inc (ALTO)

[kel3]

Rule_62,I hope you don't Mind-I Reposted Your Table

On Junior Energy Message Board IHUB

[wadegarret]

Rule_62- PEIX spreads

If as you say, the average spread for the June qtr is higher than for the Mar qtr, then I suspect earnings will be higher ? With PEIX posting around $1.50(excluding the warrant charge)for the Mar qtr on 16M shares, then with the Madera Plant additional production, I would think we see at least $1.50 from operations for the June qtr, despite having 20M shares. What do you think ?

[value1008]

Rule, one important thing to remember is that PEIX is paying a significant basis cost on their corn, so one has to use that "delivered corn cost" to get a meaningful crush spread for PEIX. Here's from the recent earnings report:

Corn cost CBOT equivalent $4.48
Average basis $1.28
Delivered corn cost $5.76

--And then, of course, divide by 2.8 to get PEIX's actual corn-costs per gallon ethanol sold.