Replies to post #19194 on Alto Ingredients Inc (ALTO)

[Slashnuts]

PEIX Reported a Loss in Q412, Others Were Profitable

pavement13 said...
"Please name one ethanol producer who reported a profit in Q4 2012. There are none to my knowledge."

I'll name two, ANDE and GPRE, both licensed with GERS.
And PEIX will report another loss in Q113, IMO.

PEIX Was Not Profitable in Q412
"Loss available to common stockholders for the fourth quarter of 2012 was $5.8 million, compared to $2.4 million for the fourth quarter of 2011. Adjusted EBITDA was negative $2.6 million for the fourth quarter of 2012, compared to negative $0.3 million in the fourth quarter of 2011"

GPRE Was Profitable in Q412
"For the quarter ended December 31, 2012, net income attributable to Green Plains was $33.0 million, or $0.94 per diluted share, compared to $13.3 million, or $0.36 per diluted share, for the same period in 2011. Revenues were $883.7 million for the fourth quarter of 2012."

ANDE Was Profitable in Q412
"The company earned $15.0 million in the fourth quarter of 2012, or $0.80 per diluted share, on revenues of $1.7 billion."

Note: ANDE bought another plant in Iowa last year. GERS was already suing the Amaizing Energy plant in Denison, Iowa, for extracting oil with Edeniq's equipment without a license from GERS. ANDE settled the lawsuit and licensed with GERS after buying out the patent infringing Denison, Iowa plant that was using the same "Oil Plus" equipment PEIX recently purchased.

If a company 22X's the size of PEIX thinks Edeniq's equipment needs to be licensed with GERS, what is NK smoking that he see's it in another light?

Same thing with GPRE, they're using ICM's equipment but licensed with GERS and getting higher yields to boot.

Both ANDE and GPRE are licensed with GERS and both were profitable in Q412. Both companies credited the profitability to corn oil.

REX lost money in Q412
REX is infringing GERS' patents.
Four of their partly owned ethanol plants are already being sued. The rest of REX's ethanol plants are being added to GERS' expanded litigation this year. REX is using the same patent infringing "Advanced Oil" equipment that PEIX bought from ICM. REX lost money in Q412 because they have a lower yielding infringing oil system and they spent too much money defending themselves against GERS' lawsuits.

"Net loss attributable to REX shareholders in Q4 ‘12 was $4.4 million, or a loss of $0.54 per diluted share, compared with income of $14.8 million, or $1.76 per diluted share, in Q4 ‘11."

PEIX and REX are infringing GERS' patents and both lost money in Q4 while legally licensed GPRE and ANDE both made money.
Just because GPRE and ANDE are well run, profitable, and getting the highest yields, doesn't PEIX is.

I guarantee PEIX lost money in Q113, even though GPRE was profitable because PEIX did not have corn oil extraction operational like they said they would. On top of that, PEIX is infringing GERS patents so they'll soon be burning even more money as GERS is expanding the lawsuit to protect GPRE and ANDE's competitive advantage over patent infringing PEIX.

[Logic1]

The problem is the Reverse Split if PEIX makes a profit and there is a reverse split dollar value will still be lost. It was my understanding there were some companies who reported a profit. Obviously I should not be listening to the boards. But remember R/S hurt a company. Why give more time to consider if there was not a majority? If there is not then there should be no reverse split period assuming the balance sheet is okay there may be a chance Peix will stay on the Nasdaq. However if you have faith stay in the stock. I sold. I would only get in as a day trade.