REX - If Alto Ingredients Couldn't Make Money In 2023 It Likely Won't In 2024 Either
2024-04-18 12:15:25 ET
Summary
- Alto Ingredients (formerly Pacific Ethanol) has struggled to make consistent profits under any market condition.
- The market for ethanol has stabilized at lower margins for 2024.
- ALTO failed to achieve profitability and positive free cash flow in 2023, so it is unlikely to achieve either in 2024.
- ALTO is on pace to burn a substantial portion of its working capital in 2024. So it will likely need to raise equity or sell off assets in the near future.
- ALTO is valued at a little over half its book value. Maximizing the value of the assets on the books is the only near-term positive path forward I see for shareholders.
Back in 2014, I wrote an article about Pacific Ethanol and its bright future as the economics of its ethanol business improved. Fast forward ten years and a name change later, and all Alto Ingredients, Inc. ( ALTO ) has proven is that it can't make consistent money under any market condition. That is shown with its long-term chart depicting a ski slope....
If Alto Ingredients Couldn't Make Money In 2023, It Likely Won't In 2024 Either