GEVO trade ideas
My thoughts on GEVO for MondaySo everyone and their mom thought GEVO was hitting 2.00+ today.
It maxed around 1.45 area. I did a quick chart with fibs and it showed that 1.45 area as the most likely PT.
So I made a new chart for Monday to have a more realistic view of what is possible IMO.
The 1.618 line on the fib retracement and extension tools are highlighted with green lines.
The green zone is what I think will be the most likely area to be hit.
The orange and red zones are potential PT areas, but not likely unless there is some awesome volume or hype.
The daily charts 200MA is at 1.51 and the VWAP is at 1.31
The vertical lines are just pre-market, market-open, after-hours, and market-close times. (PST)
So for those looking to take 2.00+ on GEVO, you will need to wait for another PR/catalyst.
I am in GEVO, so obviously I also hope we hit that 2.00+ PT.
Goodluck to us all!
GEVO In the press release, Gevo said that it worked with Peak Value IP LLC to get an understanding of what it’s intellectual property was worth. The firm came back and said that the intellectual property at the company yielded an indication of investment valuation of $412 million.
In the release, GEVO said that Peak Value used an “Income Approach” to estimate the value. This approach focused on discounting projected cash flows from direct Gevo-sponsored projects and potential out-licensing within the renewable biofuel production market.
In a statement, Patrick Gruber, CEO at GEVO, had the following to offer:
I’m pleased to see our IP valuation increasing. Our products work, our technology works, our patents cover our proprietary technology. I’m looking forward to completing the project financing of our large scale production facilities and getting large plants built. Having an external point of view on our patent portfolio, I expect, will be important in attracting investors. Our valuation reflects that we focused on isobutanol as an enabler for low-carbon renewable gasoline, jet fuel, and diesel fuel.
This News Is Huge
The news released by Gevo this morning is overwhelmingly positive. Don’t forget, we’re talking about a company that has a market cap of about $100 million. According to the press release, Peak Value suggested that the company’s real value is more than four times the value the market has given it.
The valuation makes sense too. This is especially the case when you consider the recent contract that has the potential to generate $1.5 billion in long-term reveues for the compay.
The fact of the matter is simple. The world is looking for a way to reduce its carbon footprint. One of the best ways to do so would be through the use of clean fuels. GEVO has the techology and is building the partnerships to satisfy the world’s hunger for clean fuels. That is overwhelmingly profitable, making GEVO stock one for the books.
SHORT TERM 3-mounth TP 1 3$
MEDIUM TERM 6 mounth TP 2 6$
LONG TERM 1 year TP 12-*15$
GEVO possible Elliot Wave Count and Target786 fib area looks like ideal entry for long. wave count matches magnitude and balance of the chart. will look at put option at 1.31 and call option at .88
or take long position instead of call options. ideally would like to roll profits from a put option into a call or long position at .88 cents
GEVO Long Term InvestmentFor those of your looking to invest in companies that have long term potential to grow in a changing world you may want to look at the company Gevo.
Ironically I had been on the phone with a friend talking about Gevo stock the day before a rally that saw the price change +400% the next day; going up from 56 cents/ share to 2.16/ share before settling all the way back down to the $1.20-1.30/ share range. Unfortunately I missed it.
But there would have been no way to know the news that caused the rally until the opening bell that day. Gevo landed a $900 million purchase agreement with a commodity trading company; bringing their total contracts for product purchasing to $1.5 billion between now and 2023.
What does Gevo do and why might they see long term growth? Gevo is a biotechnology company that has a proprietary process for producing renewable chemicals and hydrocarbons (biofuels). Wait a moment you may say.....there have been lots of renewable chemical companies that have experienced stock bursts following offtake agreements that have later struggled, crashed, or experienced slow growth at best.
What might make Gevo different?
Gevo's technology is dependent on a proprietary yeast strain, presumably S. Cerevisiae, they have developed that can ferment sugars into Iso-Butanol. Ethanol fermentation via S. Cerevisiae is a well established industry with a huge amount of established infrastructure. Gevo's technology is a plug and play match with the entire ethanol fermentation industry.....albeit with the end product a higher value alcohol due to the fact it can be synthesized into octane and octene, the primary components of gasoline, as well as various other compounds, think butadiene or other polymer precursors, with common and well established chemical reactions. Where once an alcohol worth around $2.20/ gallon was produced, now a few extra dimes can be committed to synthesizing an alcohol into $3.60/ gallon gasoline. Additionally, they have developed a continuous extraction method whereby the iso-butanol is continually extracted from the fermentation broth, negating the need for batch distillation. This cheapens product recovery by a wide margin over other extraction methods. Their feedstock is # 2 corn, or various other crop commodities such as sorghum, which have an established supply chain into the very same ethanol refineries that can plug and play with Gevo's proprietary yeast.
How does this set them apart? Many startup companies in the biofuels or renewable chemical industry developed technology that either relied on very novel organisms such as E. Coli or algae's with little established use in mass scale biochemical manufacturing of commodities, or relied on technology that needed infrastructure that did not yet exist, such as thermo-chemical refineries that break down organic waste into hydrocarbons using intense heat or pressure. These companies would or will rely on establishing new supply chains for their feedstock, such that the feedstock can be amalgamated where it is needed. For example, to convert municipal solid waste into raw chemical products, you would need to build a brand new refinery at a landfill such that your feedstock was amalgamated where it was needed.
For the above reasons Gevo's technology should be much faster to scale and much more likely to succeed than other biotechnology and renewable chemicals companies and manufacturing processes.
Tomorrow 38 million shares of Gevo stock are being sold to an investor for $1.30. In the optimistic scenario we can expect that, in the coming weeks, the 50 MA may bounce off the 200 MA sending the share price towards higher price points. Some analysts have valued the share price up to $2.40
Maintaining and expanding their manufacturing capacity and meeting volumes of their supply agreements will be crucial to long term growth; but if they do we should expect that Gevo's technology to slowly expand around the world as competition from chemical refining methods using cheap amalgamated crop and waste feedstocks, combined with low oil prices brought about by electrification of the transportation sector, send the petroleum drilling industry into a long slow death spiral as the capex of drilling new oil wells has poorer and poorer returns. This trend can be observed with the surge of retrofits of petroleum refineries into those capable of processing renewable diesel and gasoline from used vegetable oil, animal fat, and other waste feedstocks.
Gevo Exceeds $1.5B in Long-Term Revenue ContractsGevo Exceeds $1.5B in Long-Term Revenue Contracts with Signing of Trafigura
Gevo and Trafigura Enter into Contract for Low-Carbon Premium Gasoline and Sustainable Aviation Fuel
This is our largest single contract to date, and with it, brings Gevo to over $1.5B of revenue in long term contracts when added to the other contracts we have in place.
Under this contract Trafigura is expected to take delivery of 25MPGY of renewable hydrocarbons, the majority of which is expected to be low-carbon premium gasoline with a smaller portion of the volume for sustainable aviation fuel (“SAF”), starting in 2023.
The Agreement is a long term, take or pay contract and is the largest contract in Gevo’s history.
finance.yahoo.com
finance.yahoo.com
Gevo, Inc. Announces $50 Million Registered Direct Offering Priced At-the-Market under Nasdaq Rules
has entered into definitive agreements with institutional and accredited investors for the sale of an aggregate of 38,461,545 shares of common stock (or common stock equivalents) at a purchase price of $1.30 per share in a registered direct offering priced at-the-market under Nasdaq rules. The offering is expected to close on or about August 25, 2020, subject to the satisfaction of customary closing conditions.
finance.yahoo.com
$GEVO $0.59 AT ROBINHOOD BULLISH REVERSAL 350% Gains TARGET $2.5Alltime High Was $150,000 A Share Many Years Ago. And since that time investors have faded from a once hyped project. The alltime low was an astonishing $0.45 a share. Is it really that hard to imagine $2.50 a share within a 2 Year Downward channel from rough downward trendlines. The company finally has the worlds first green fuel. Zero carbon, a take or pay contract. The excutives got caught in another scandal of insider buying stocks scandal. Looks like they know something we don’t. If you want to be rich, this is the ultimate buying opportunity. Buy, hold till 2030 and you’ll have fun coupons. That means your rich...!
BUY $GEVO $0.4702 AT Robinhood Down Nearly 100 Percent From ATHThis is the golden opportunity to make an insane amount of money.
The current price is .4702 a share, the high was once 15000 a share!
Imagine this investment goes up to 10 bucks a share.
Share this post with all your friends because it’s the official bottom!
GEVO AFTER PULL BACK IS PREPARING TO A REBOUNDGevo, Inc. is a renewable chemicals and advanced biofuels company headquartered in unincorporated Douglas County, Colorado in the Denver-Aurora metropolitan area. The company develops bio-based alternatives to petroleum-based products using a combination of biotechnology and classical chemistry.
On August the prices have passed the 200 daily SMA. After (let me say "a classical pull-back) they are another time near the 2000 daily SMA. In my opinion and in my experience this is an occasion to enter long. Stop Loss as indicated in the chart.
I will try to buy the next week.
Stay tuned
Gio
GEVO - Pullback Coming - Could Be Good For Long Term TrendGevo, Inc. is a renewable chemicals and next generation biofuels company, which focuses on the development and commercialization of renewable alternatives to petroleum-based products. It operates through the following segments: Gevo; Gevo Development and Agri-Energy. The Gevo segment focuses in the research and development activities related to the future production of isobutanol, including the development of the firm's proprietary biocatalysts, the production and sale of renewable jet and other fuels, the retrofit process, and the next generation of chemicals and biofuels that will be based on the company's isobutanol technology. The Gevo Development and Agri-Energy segment is currently responsible for the operation of its agri energy facility and the production of ethanol, isobutanol, and related products. The company was founded by Matthew W. Peters, Peter Meinhold, and Frances Hamilton Arnold on June 9, 2005 and is headquartered in Englewood, CO.
SHORT INTEREST
192.63K 08/30/19
P/E Current
-0.59
P/E Ratio (with extraordinary items)
-1.47
Average Recommendation: BUY
Average Target Price: 10.00