Group 1 - Covered call ETFs have been gaining popularity in recent years, and this trend is expected to continue in the future [1] - The article emphasizes the importance of dividend investing in quality blue-chip stocks, BDCs, and REITs for retirement income [2] - The author aims to assist lower and middle-class workers in building investment portfolios focused on high-quality, dividend-paying companies [2] Group 2 - The article does not provide any specific stock recommendations or investment advice [4] - There is a clear disclosure that the author has no current positions in any mentioned companies and does not plan to initiate any within the next 72 hours [3] - The content is intended for educational purposes, encouraging readers to conduct their own due diligence [2]

Core Viewpoint - Purcell & Lefkowitz LLP is investigating REX American Resources Corporation to determine if its directors breached fiduciary duties related to recent corporate actions [1] Group 1 - The investigation is on behalf of shareholders of REX American Resources Corporation [1] - The law firm specializes in representing shareholders affected by securities fraud and breaches of fiduciary duty [3] - Shareholders seeking more information can contact the firm directly for assistance [2]

Company Overview - REX American is a publicly traded company on the NYSE since 1984, focusing on profitable execution and growth in the low carbon future[6,8] - The company has a strong balance sheet with $365.1 million in cash, cash equivalents & short-term investments and $392.5 million in working capital, with no bank debt as of October 31, 2024[9,10] - REX has interest in ethanol production from six facilities across four states, with a total production capacity of approximately 730 million gallons per year, and REX's total ownership is approximately 300 million gallons per year[12,13] Financial Performance - Net sales and revenue for Q3 2024 were $174.9 million, with a gross profit of $39.7 million[9] - Net income attributable to shareholders for Q3 2024 was $1.38 per diluted share[9] - Ethanol sales totaled 75.5 million gallons for Q3 2024, with an average selling price of $1.831 per gallon[21] - Ethanol accounted for approximately 79% of Q3 2024 product revenue, totaling $138.1 million[33] - Sales of Dry Distillers Grain (DDG) accounted for approximately 14% of Q3 2024 product revenue, totaling $25.0 million[33] Carbon Capture and Sequestration (CCS) - The company is developing carbon capture and sequestration capabilities at its One Earth Energy facility, which will produce approximately 560,000 tons of carbon per year[8,16] - The project has three underground injection wells with a capacity to sequester 90 million tons of carbon[16] - The company anticipates potential tax credit benefits of approximately $36 million annually under the 45Q program and approximately $150 million annually under the 45Z program[51] - One Earth submitted applications for 3 Class VI injection well permits with total sequestration capacity of 90 million tons of carbon in October 2022[45]

Ethanol Production and Revenue - As of April 30, 2025, the company holds majority ownership interests in two ethanol entities: One Earth Energy, LLC (75.9%) and NuGen Energy, LLC (99.7%) [103] - The company expects its ethanol plants to produce approximately 2.9 gallons of denatured ethanol for each bushel of corn processed, with the realized yield being critical for profitability [104] - Ethanol revenue increased by 4% in the first quarter of fiscal year 2025, driven by a 10% increase in the average selling price per gallon, despite a 5% decrease in gallons sold [133] Capital Expenditures and Investments - The company has budgeted capital expenditures for carbon sequestration and plant expansion projects to be approximately $220 million to $230 million, with $56.3 million already spent as of April 30, 2025 [112] - The company plans to spend $60 million to $80 million on projects during the remainder of FY 2025 [155] - The company is working on a carbon sequestration project and has applied for a Class VI injection well permit, expecting a draft permit by November 2025 and a final decision by April 2026 [107] Financial Performance - Net sales and revenue for the first quarter of fiscal year 2025 were approximately $158.3 million, a decrease of 2% compared to $161.2 million in the first quarter of fiscal year 2024 [131] - Gross profit for the first quarter of fiscal year 2025 was approximately $14.3 million, a slight decrease compared to $14.5 million in the prior year [138] - Net income attributable to REX common shareholders for the first quarter of fiscal year 2025 was approximately $8.7 million, down from approximately $10.2 million in the first quarter of fiscal year 2024 [146] Commodity Prices and Risk Management - Estimated decrease in pre-tax income from a 10% adverse change in commodity prices includes $51,422 for ethanol (295,000 gallons), $42,626 for corn (102,100 bushels), and $8,588 for distillers grains (718 tons) [160] - The company is exposed to market fluctuations associated with commodity prices and manages risk through fixed-price contracts and commodity futures [160] Operational Changes and Challenges - The company ceased operations at its refined coal facility on November 18, 2021, after receiving approximately $58.2 million in federal production tax credits [115] - The EPA has issued Renewable Fuel Standard volume obligations for conventional biofuels at 15.0 billion gallons for 2023 through 2025, with ongoing legal challenges affecting the enforcement of these standards [119] Cash Flow and Investments - Net cash used in operating activities was approximately $3.5 million for the first quarter of fiscal year 2025, compared to $2.3 million in the prior year [147] - Cash provided by investing activities in Q1 FY 2025 was approximately $1.8 million, a decrease from $11.9 million in Q1 FY 2024, with capital expenditures of approximately $6.9 million primarily for ethanol plant projects [151] - The company purchased U.S. Treasury Bills of approximately $41.4 million in Q1 FY 2025, while $50.0 million matured, indicating active management of short-term investments [151] Stock Buyback and Shareholder Returns - The company has a stock buyback program with 1,181,963 shares remaining authorized as of April 30, 2025, and repurchased approximately $32.7 million worth of stock in Q1 FY 2025 [154][156] Revenue from By-products - Dried distillers grains revenue decreased by 27% in the first quarter of fiscal year 2025, with a 22% drop in average price per ton and a 6% decrease in tons sold [134] - Distillers corn oil revenue increased by approximately 1% in the first quarter of fiscal year 2025, with a 2% increase in pounds sold, offset by a 2% decrease in average price per pound [135] - Modified distillers grains revenue increased by 36% in the first quarter of fiscal year 2025, with a 52% increase in pounds sold, despite an 11% decrease in average selling price per ton [136]

Financial Data and Key Metrics Changes - In Q1 2025, ethanol sales volumes were 70.9 million gallons, down from 74.5 million gallons in Q1 2024, with an average selling price of $1.76 per gallon [11] - Gross profit for Q1 2025 was $14.3 million, slightly down from $14.5 million in Q1 2024, primarily due to lower sales prices for dry distiller grains [12] - Net income attributable to REX shareholders was $8.7 million or $0.51 per diluted share, compared to $10.2 million or $0.58 per diluted share in Q1 2024 [13] - Cash, cash equivalents, and short-term investments at the end of Q1 were $315.9 million, reflecting ongoing capital investments and share repurchases [13][14] Business Line Data and Key Metrics Changes - Dry distiller grain sales volumes were approximately 153,000 tons with an average selling price of $145.65 per ton [11] - Modified distillery grain volumes totaled approximately 22,000 tons with an average selling price of $73.44 per ton [12] - Corn oil sales volumes were approximately 21.4 million pounds with an average selling price of $0.46 per pound [12] Market Data and Key Metrics Changes - U.S. ethanol exports through March 2025 were nearly 19% higher than the same period in 2024, with March 2025 exports up 23% compared to March 2024 [17] - The company anticipates stable performance in Q2 2025, expecting another profitable result [17] Company Strategy and Development Direction - The company is focused on organic growth initiatives, including carbon capture and expansion of ethanol production capacity, with a combined budget range of $220 million to $230 million for both projects [6][10] - REX continues to evaluate potential acquisition opportunities that meet strict operational and financial criteria [6] - The company is committed to delivering consistent value to shareholders through share buybacks, having repurchased approximately 822,000 shares for $32.7 million in Q1 2025 [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertain regulatory and market conditions, highlighting the strength of the balance sheet [5] - The company is closely monitoring potential changes to the Inflation Reduction Act and other regulatory developments that could impact future economic decisions [9][29] - Management remains optimistic about the ethanol market, citing favorable conditions and expected record corn production due to strong planting and good weather [31] Other Important Information - The company has maintained a strong financial position with no bank debt [14] - The total investment in carbon capture and ethanol expansion projects stands at approximately $122.7 million as of the end of Q1 2025 [10] Q&A Session Summary Question: What drives REX's ability to consistently deliver performance? - Management attributes consistent profitability to strong leadership, effective communication, and a dedicated team that closely monitors market conditions [20][22][24] Question: What specific deregulation measures would help REX? - Management noted that current regulatory measures are in limbo and emphasized the importance of ongoing communication with contacts in Washington [26][29] Question: Thoughts on industry fundamentals and ethanol margins? - Management expects positive trends in ethanol margins due to anticipated record corn production and favorable export conditions, while also monitoring natural gas prices closely [31][32]

Financial Data and Key Metrics Changes - In Q1 2025, ethanol sales volumes were 70.9 million gallons, down from 74.5 million gallons in Q1 2024, with an average selling price of $1.76 per gallon [10] - Gross profit for Q1 2025 was $14.3 million, slightly down from $14.5 million in Q1 2024, primarily due to lower sales prices for dry distiller grains [11] - Net income attributable to REX shareholders was $8.7 million or $0.51 per diluted share, compared to $10.2 million or $0.58 per diluted share in Q1 2024 [12] - Cash, cash equivalents, and short-term investments at the end of Q1 were $315.9 million, reflecting ongoing capital investments and share repurchases [12] Business Line Data and Key Metrics Changes - Dry distiller grain sales volumes were approximately 153,000 tons with an average selling price of $145.65 per ton [10] - Modified distillery grain volumes totaled approximately 22,000 tons with an average selling price of $73.44 per ton [11] - Corn oil sales volumes were approximately 21.4 million pounds during the quarter with an average selling price of $0.46 per pound [11] Market Data and Key Metrics Changes - U.S. ethanol exports through March 2025 were nearly 19% higher than the same period in 2024, with March 2025 exports up 23% compared to March 2024 [16][17] - The company anticipates stable performance in Q2 2025, expecting another profitable result [16] Company Strategy and Development Direction - The company is focused on organic growth initiatives, including carbon capture and expansion of ethanol production capacity, with a combined budget range of $220 million to $230 million for both projects [5][9] - REX continues to evaluate potential acquisition opportunities that meet strict operational and financial criteria [5] - The company is committed to delivering consistent value to shareholders through share buybacks, having repurchased approximately 822,000 shares for $32.7 million in Q1 2025 [6][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertain regulatory and market conditions, highlighting the strength of the balance sheet [4] - The company is closely monitoring potential changes to the Inflation Reduction Act and other regulatory developments that could impact future economic decisions [8] - Management remains optimistic about the ethanol sector's favorable market conditions and expects record corn production to boost profits for the rest of the year [29] Other Important Information - The company has maintained a strong financial position with no bank debt [13] - The ongoing technical review of the ethanol facility expansion is expected to enhance long-term operational efficiencies [7] Q&A Session Summary Question: What drives REX's ability to consistently deliver performance? - Management attributed consistent profitability to strong leadership, effective monitoring of market conditions, and a dedicated team [20][22] Question: What specific deregulation measures would help smooth the runway? - Management noted that regulatory developments are currently in limbo and emphasized the importance of monitoring changes closely [24][27] Question: Thoughts on industry fundamentals and ethanol margins? - Management expects positive trends in ethanol margins due to strong corn production and favorable export conditions, while also monitoring natural gas prices closely [29]

Financial Performance - REX reported Q1 2025 net sales and revenue of $158.3 million, a decrease of 5.4% from $161.2 million in Q1 2024[3] - Gross profit for Q1 2025 was $14.3 million, slightly down from $14.5 million in Q1 2024[3] - Net income attributable to REX shareholders in Q1 2025 was $8.7 million, compared to $10.2 million in Q1 2024, resulting in diluted net income per share of $0.51, down from $0.58[4] - Net income for the three months ended April 30, 2025, was $10,672 million, a decrease of 13.1% from $12,273 million in the same period of 2024[22] - Net cash used in operating activities was $3,476 million, compared to $2,263 million in the prior year, indicating a decline in operational cash flow[22] - Capital expenditures for the period were $6,900 million, significantly lower than $24,832 million in the previous year[22] - Net cash provided by investing activities was $1,809 million, down from $11,895 million year-over-year[22] - Cash and cash equivalents at the end of the period were $159,913 million, a decrease from $231,200 million at the end of the previous year[22] Shareholder Actions - REX repurchased approximately 822,000 shares for a total consideration of $32.7 million in Q1 2025, representing about 4.7% of outstanding shares[9] - Treasury stock acquired amounted to $32,670 million, reflecting a new strategy in capital management[22] Capital Expenditures and Investments - Capital expenditures related to the One Earth Energy carbon capture and ethanol production expansion project totaled $122.7 million, with a combined budget of $220-$230 million for completion[8] - Non-cash investing activities included accrued capital expenditures of $2,717 million, down from $3,938 million in the prior year[22] Ethanol Production - REX achieved consolidated ethanol sales volumes of 70.9 million gallons in Q1 2025[7] - The expansion of ethanol production at the One Earth facility is ongoing, with project completion anticipated in 2026[5] - REX's effective ownership of annual ethanol production volumes is approximately 300 million gallons across six facilities[13] Carbon Capture Project - The permitting process for the carbon capture project at the Gibson City location is ongoing, with final decisions expected in January 2026[6]

Company Performance - REX has returned approximately 1.3% year-to-date, outperforming the average loss of 1.1% in the Oils-Energy sector [4] - The Zacks Consensus Estimate for REX's full-year earnings has increased by 15.7% over the past quarter, indicating improved analyst sentiment [3] - REX is part of the Biofuels industry, which has seen an average loss of 17.6% this year, further highlighting REX's relative strength [5] Industry Comparison - REX is ranked 32 in the Zacks Industry Rank within the Biofuels industry, which consists of 3 individual companies [5] - RGC Resources Inc. is another stock in the Oils-Energy sector that has outperformed, returning 4.5% since the start of the year [4] - The Oil and Gas - Refining and Marketing industry, where RGC Resources Inc. belongs, has moved up by 7.5% this year and is ranked 84 [6]

Company Overview - REX American Resources Corporation (REX) is positioned as an intriguing investment choice within the Biofuels sector due to solid earnings estimate revisions and a favorable Zacks Industry Rank [1][5] - The company has experienced a positive shift in earnings estimates, indicating a more bullish outlook from analysts regarding its short and long-term prospects [3][4] Industry Analysis - The Biofuels industry currently holds a Zacks Industry Rank of 10 out of over 250 industries, suggesting a strong position relative to other sectors [2] - The overall positive trends in the Biofuels segment are likely benefiting multiple securities within the industry, indicating a rising tide effect [2] Earnings Estimates - Over the past month, REX's current quarter earnings estimates have increased from $0.26 per share to $0.34 per share, while current year estimates have risen from $1.34 per share to $1.55 per share [4] - These revisions have contributed to REX earning a Zacks Rank 1 (Strong Buy), highlighting the company's robust position in the market [4]

Core Viewpoint - The stock market is experiencing volatility due to U.S. tariffs and global trade tensions, with the S&P 500 down over 8% for the year [1] Group 1: Market Conditions - U.S. tariffs on imports from major partners like China have reached as high as 145%, while China has imposed 84% duties on U.S. products [1] - Ongoing inflation pressures and concerns about a potential recession or stagflation are contributing to market uncertainty [1] Group 2: Investment Strategy - Investors are encouraged to focus on relative price strength, identifying stocks that outperform their peers even in volatile conditions [2] - Stocks that have shown better performance than the S&P 500 over the last 1 to 3 months, combined with solid fundamentals, indicate potential for growth [6] Group 3: Recommended Stocks - IHS Holding Limited (IHS) is highlighted for its strong growth potential, with a Zacks Consensus Estimate indicating 114.7% growth for 2025 earnings and a market cap of $1.6 billion [10][11] - Atlanticus Holdings Corporation (ATLC) is noted for a 29.4% growth estimate for 2025 earnings and a significant share price increase of 110.5% over the past year [12][13] - REX American Resources Corporation (REX) has a market cap of $676.4 million and a 15.7% upward revision in earnings estimates for fiscal 2026, despite a 31.3% decline in share price over the past year [14][15] - Fresenius Medical Care AG (FMS) is recognized for a 27.1% growth estimate for 2025 earnings and a share price increase of 31.8% in the last year [16][17] Group 4: Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Only Zacks Rank 1 (Strong Buy) stocks are considered, which have historically outperformed the S&P 500 [9]