Alcohol prices

How Alto’s Ingredients Can Boost Soaring Alcohol Prices

How can a business reinvent itself during a two-year global pandemic?

Check with a specialty liquor company experiencing a turnaround in the small-cap industry.

“An idea of ​​small-cap action that I like about this disorder of a market are the ingredients of Alto (ALTO) “TheStreet’s James” Rev Shark “recently said in Real Money.

“Only a few years ago, Alto was on the verge of bankruptcy due to a poor market for its fuel grade ethanol,” wrote Deporre.

“The company was saved in 2020, however, when it was able to shift production to medical grade alcohol which was used in sanitizers and disinfectants in high demand due to Covid-19,” Depore wrote. “The company has continued to focus on specialty spirits, and due to a very favorable sales environment and the liquidation of some facilities during the pandemic, it is now debt free and on the verge of generating substantial revenue. . “

What’s particularly interesting for Alto at this point is that there has been a surge in fuel ethanol prices. “An unprofitable product suddenly became very profitable and to such an extent that Alto reopened an ethanol-fuel plant in November,” said Rev Shark.

Alto is expected to earn 21 cents a share in the current quarter, but due to favorable ethanol prices, it could be significantly higher than that.

Deporre noted that “there is only one analyst, from HC Wainwright, who currently covers ALTO. His price target is $ 16 and he expects profits to rise 135% in 2022 to $ 0.80. I think there’s a good chance that number is low.

At the time of publication, Rev Shark had been ALTO for a long time.

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