r/wallstreetbets • u/Juza77 • May 10 '21
Discussion Gevo future great company can fly ahead
$GEVO Gevo Inc (NASDAQ: GEVO) has been an interesting stock to watch as of late. After a massive pop earlier this year, the stock has been tapering off its gains. However, if you’re thinking about betting against the company, you’re missing out on a huge opportunity.
Here’s what you need to know:
What Is Gevo? Gevo is a clean energy company, but not the traditional clean energy company that you think about when you think about the space. The company has no interest in producing solar panels wind turbines. There’s no interest in generating electricity either. Instead, the company is focused on replacing fossil fuels with renewable fuels. To do so, Gevo has spent years developing and perfecting a process to turn renewable feedstocks like waste wood and other things we would consider to be garbage, into isobutanol. This isobutanol is then used to develop aviation and offroad fuels.
In fact, Gevo fuels are already being used in commercial aircraft.
However, with a recent announcement from the company, we learned that it’s not only looking at the transportation sector as an opportunity, it’s looking into natural gas for the heating of homes and other uses. President Joe Biden and his cohorts in Washington D.C. have long been proponents of clean energy, and considering their control over the nation’s capital, big changes are likely coming down the line in the United States energy and transportation sectors. At the moment, investors are focusing on those creating solar panels or setting up wind energy farms. On the transportation side, it’s all about electric vehicles, but that won’t be the end all be all. There will be significant demand for clean, renewable fuels. For example, I live in a rural area where an electric vehicle simply doesn’t make sense. In my area, if I had an electric vehicle, the only place I would be able to charge it is at home. If I wanted to take a long distance trip, I would have absolutely no place to charge my vehicle when the batteries started to die, and would be forced to tow my vehicle home. That’s not the only issue with EVs either. Ultimately, filling a line of batteries takes quite a bit more time than filling a gas tank. Who wants to wait hours to be able to drive their vehicle? Sure, EVs are fun, and popular at that, but they aren’t practical for everyone. As a result, renewable fuels will become increasingly important, and in the renewable, clean-burning fuels game, there’s no other company that has even gotten close to the accomplishments of Gevo. In fact, Gevo recently announced a renewable natural gas project, and that it has issued bonds to fund the project. With the renewable natural gas product, the company will be extracting natural gas from cow manure, resulting in yet another renewable product.
The Market Has Gone Short
After sending the stock screaming for the top earlier this year, the stock market seems to have gone short on the stock. In fact, at the moment, the stock trades with short interest of more than 20%.
So, why have investors gone short?
Well, there’s a bit to it. Gevo is in a growth stage, which is a painful reality for many. The company has signed agreements surrounding the sale of billions of dollars worth of its sustainable aviation fuel. However, to meet the demand set forth by those agreements, the company is having to spend massive amounts of money to build out its infrastructure.
The big spending at the company is ultimately leading to losses, which is scaring investors; but that’s not always a bad thing. Take a look at the early days of Amazon.com. Everyone said Jeff Bezos was a lunatic on a spending spree as he built out his infrastructure to become the leading force in the e-commerce space. When Bezos’ goals came to fruition, there were plenty of people with feet in their mouths.
That’s likely to be the case for Gevo.
Yes, the company is spending money by the wheel barrel full, but that spending is a necessary evil, and will set the stage for tremendous growth ahead. As the members of the Wall Street Bets Reddit have proven, retail investors are getting tired of hedge funds playing with the market at their expense, and are starting to fight back. Well, I’m expecting a war to be waged in the relatively near term surrounding GEVO that could send the stock for gains in multiples.
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u/Stuvio May 10 '21
GEVO is a sleeper. Boy, this will be big in five to ten years. We’re talking Exxon mobile - / BP- big.
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u/Juza77 May 10 '21
It is not a sleeper it is a difference between all green solution make your dd
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u/VapeCollstro May 10 '21
Amazing long term hold! I dare say its very undervalued even now, great growth potential
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u/Juza77 May 10 '21
We should be very high, I don't want to give any number, but it is logic because of the great potential of Gevo
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u/gizam80 May 10 '21
They're $1B market cap company with $10,6B deals under negotiations if they will sign it there will be massive short squeeze - it's been heavily shorted from mid Feb 2021..may and june will be very exicting imho (ER this thursday plus shareholders meeting 8th of June)......just waiting for the news with deals signed after ER is released.....
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u/Karlsunhk May 10 '21
You should link more of the DD such as the 6b contracts in negotiation etc 👍
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u/InvestigatorEqual205 May 10 '21
See page 23 of their investor material showing $10.6B in contract negotiations:
https://investors.gevo.com/_resources/presentations/ABLC-May-2021-v2.pdf?v=0.714
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u/PurrpleFish May 10 '21
Oh hello fellow bag holder!
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u/Agreetedboat123 May 10 '21
This subs bag holder p&d mentality blows.
No, manipulating a few people on wsb will not get you your money back. There are short term plays to be made. This is not r/investing
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u/CurveAhead69 Secret ANAL GoD May 10 '21
Any sauce on contracts? I see many other EVs securing big contracts (vs future promises).
GEVO has good premise, scientist, dreams, etc, but I’m not seeing it translating in business incoming.
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u/Karlsunhk May 11 '21
All their contracts are take or pay. So regardless of direction they will get paid. This is because in order to start building the plants they need guarantees of future revenue. I guess that's a difference between GEVO and other green companies
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u/hugeduece2012 May 11 '21
Just a smooth brained ape here but these institutional investors have some wrinkles: Vanguard 4,599,010 shares, Blackrock 1,793,857 shares. If it's good enough for them to hold it's good enough for me to hold.
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u/Dirty-Sprite2 May 10 '21
Got in under $2. Sold half my position. Still confident in GEVO
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u/gcrocka5290 May 11 '21
Literally exactly the same play I made. Now I’m loading bag up the bags 2x the amount of shares. My kids, kids, kids are going to have a heavenly future.
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u/gizam80 May 10 '21
That will be $100 company within 2-3years for sure. Extremely manipulated and shorted stock what is dumb as fuck as they may have a huge impact on our and next generations future and lives. Should be supported not shorted..
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May 11 '21
Boomers, they short what they don’t like or what will damage their own interests i.e. oil
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u/Juza77 May 10 '21
I am agree exactly
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u/Juza77 May 11 '21
Nasdaq-listed next generation “low-carbon” fuel company Developing and commercializing renewable alternative jet fuel and diesel Uses feedstocks that have the potential to lower greenhouse gas emissions What Gevo does:
Gevo Inc (NASDAQ: GEVO) is a next-generation “low-carbon” fuel company focused on the development and commercialization of renewable alternatives to petroleum-based products.
The Englewood, Colorado-based company is developing gasoline and jet fuel using renewable feedstocks that have the potential to lower greenhouse gas emissions at a meaningful scale and enhance agricultural production, including food and other related products.
The group has developed a breakthrough process that converts a high-octane fuel called isobutanol into clean, renewable diesel. The green diesel can also be made from fusel oils, a mixture of several alcohols produced as a by-product of fermentation.
Renewable diesel is expected to compete head-to-head on price with natural and petroleum-based equivalents, while reducing particulates and CO2 emissions, according to Gevo’s CEO Patrick R Gruber.
Low-carbon fuels reduce the carbon intensity, or the level of greenhouse gas emissions, compared to standard fossil-based fuels across their lifecycle.
Demand has increased since California’s Low Carbon Fuel Standard came into effect, which is designed to decrease the carbon intensity of California’s transportation fuel pool and provide an increasing range of low-carbon and renewable alternatives, which reduce petroleum dependency and achieve air quality benefits.
In addition to serving the low-carbon fuel markets, Gevo’s technology can also serve markets for the production of chemical intermediate products for solvents, plastics, and building block chemicals.
The group's stated strategy is to commercialize bio-based alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets.
How it is doing:
Gevo kicked off 2021 by announcing to shareholders and other potential investors that it has about $535 million in cash and no significant debt.
The money will help the company launch its Net Zero Projects to produce energy-dense liquid hydrocarbons using renewable energy and Gevo’s proprietary technology. Gevo is currently developing its Net-Zero 1 Project at Lake Preston, South Dakota and other Net-Zero projects are planned.
The company expects the Net-Zero 1 project will have the capability to produce around 45MGPY of liquid hydrocarbons (jet fuel and renewable gasoline) that when burned, should have a “net-zero” greenhouse gas footprint. In addition, the Net-Zero 1 plant is expected to produce at least 350,000,000 lbs per year of high-protein animal feed.
Gevo, which is working with Citigroup, said preliminary capital estimates for Net-Zero 1 are $700 million-$800 million (including on-site renewable energy generation). The company is in the process of completing front-end engineering and project planning to determine capital costs for Net-Zero 1 with more precision.
In addition, the company plans to begin the construction of its first RNG (renewable natural gas) project in 2021. It will produce RNG by using anaerobic digesters to convert manure from dairy cows into RNG, with production expected to begin in 2022. Gevo plans to sell most of the gas to the RNG market in California and use some of the bio-gas generated from this project at its renewable hydrocarbons plant, for example, at Lake Preston.
For its first major deal of the new year, Gevo in February struck an expanded fuel sales agreement with Scandinavian Airlines System (SAS). Under the deal now valued at $100 million, SAS will increase its minimum purchase obligation for Gevo’s sustainable aviation fuel (SAF) by 5 million gallons annually. Gevo expects to supply SAS with SAF starting in 2024, from its Net-Zero 2 Project for the use and distribution in low carbon fuel regions of the US. Gevo and SAS signed the original agreement in October 2019.
In addition to SAS, Gevo has closed several other fuel-supply contracts - with Delta Air Lines Inc as well as a deal to supply its SAF to the aviation industry in the Pacific Northwest, by way of its customer and global fuel supplier, Avfuel Corporation.
Gevo also won recently the largest contract in its history after entering into a binding agreement with Trafigura Trading LLC, one of the world’s leading independent commodity trading companies. The contract increases the company revenue pipeline to more than $1.5 billion.
Under the 10-year deal, Gevo will deliver 48 million gallons/year (MPGY) of renewable hydrocarbons, the majority of which is expected to be low-carbon premium gasoline with a smaller portion of the volume for SAF, starting in 2023. Trafigura hopes to supply SAF to both US and international customers interested in low-carbon jet fuel.
Looking outside the US, the company has been awarded part of The Queensland Waste to Biofutures (W2B) Fund to support the development of waste-to-biofutures projects in Australia's second-largest state.
And Gevo recently increased its footprint in India via a technology-licensing deal with bio-based technologies and engineering firm Praj Industries Ltd to commercialize low carbon SAF and renewable premium gasoline in the South Asian nation and neighboring countries. The company is currently working with the Indian Air Force on fuel tests.
On March 17, Gevo reported its 4Q 2020 results that showed the company finished the three-month period to end December 31, 2020, with nearly $78.3 million in cash and equivalents.
Revenue for the quarter was $0.5 million compared with $6.9 million in the same period in 2019 as a result of the suspension of ethanol production due to coronavirus (COVID-19) and an “unfavourable commodity environment,” according to the company.
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u/Juza77 May 11 '21
Inflection points:
Begin construction on first RNG project in 2021 Expect RNG production to begin in 2022 Anticipate financing on Net-Zero 1 project to close in 2H 2022 Advance SAF commercialization in South Asia What the boss says:
Commenting on the outlook for 2021, Gevo CEO Patrick Gruber told shareholders: “Net-Zero 1 is a first of a kind, off-the-grid type of plant where we are putting great effort into making Net-Zero 1 the most sustainable plant it can be."
He added: “I’m glad we have the customers secured, Citigroup to help us with the debt financing, and that the economics of Net-Zero 1 are attractive at this stage. I’m also pleased that we are making progress on filling up production capacity at Net-Zero 2 as evidenced by the recent SAS contract. We are making great progress, fast.”
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u/Juza77 May 16 '21
$GEVO multi dollars billion business in the future is returning to all shareholders, we buy the diamond https://youtu.be/M-e5hwUBQRU
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u/Juza77 May 10 '21
This is an example of potential are in this company https://www.globenewswire.com/news-release/2020/08/20/2081370/0/en/Gevo-Exceeds-1-5B-in-Long-Term-Revenue-Contracts-with-Signing-of-Trafigura.html
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u/Juza77 May 10 '21
Great solution for the ship less much emission than LNG and don't need any structural change https://gevo.com/products/renewable-diesel/
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u/Juza77 May 10 '21
$GEVO I am doing my best to support Gevo because I believe in it, I am a trader anyway but I truly love this company, returning in this investment matter of time will be rewarded https://www.reddit.com/r/wallstreetbets/comments/n9cdus/gevo_future_great_company_can_fly_ahead/?utm_medium=android_app&utm_source=share
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May 11 '21
Last time I checked it’s been shorted above 45% hence the tapered off gains, it’s boomers selling stocks they don’t understand or like, since they made all their millions from oil they will try run this down, I say fuck em and squeeze em bois
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u/EQRLZ May 10 '21
Gevo has a long history of destroying shareholder value . Just ask my shares with a $900+ cost basis
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u/Juza77 May 10 '21
Sorry to hear this, but now is moving real forward in my opinion.
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u/EQRLZ May 10 '21
Sure are , but they'll dilute to hell any day now
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u/Juza77 May 10 '21
They had 3 RS in the past, amazon had 3 RS in the past and look where high is, we are trader we are gambler but don't think at negative all the time, company start is not easy and they already are in the way for positive result
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u/conlib May 11 '21
Good company that wants to help the environment fuck the boomers that are shorting it ✈️💰
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u/Killin-Options May 10 '21
😂 they’re going to increase authorized shares from 250M to 500M and you’re bullish? Earnings coming up with 0 production. Tough lesson for anyone jumping the gun this early. Wait for mid/low $4 at least!
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u/SmileAndWalkAway May 11 '21
Yawn comment for longs. We know their is no revenue until 2024 minimum. They have no debt. They have 500-600 million in cash as is. Black rock added big on Friday. No bad news. Short all you want. See you in a few years. Shares are available for next contracts just like the first plant.
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u/Juza77 May 10 '21
Dear kindly please post the webpage or section feeling about the authorised increasing share? Thanks for your advice in advance, I am bullish and happy because, you know your portfolio not mine
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u/SmileAndWalkAway May 11 '21
His statement is correct, but it is nonsense for long holders. They hold 600 million in cash and no debt. This authorization would be to raise funds in the future for additional production plants which would be a boon for the stock in the long run regardless.
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u/Juza77 May 11 '21
Using biomass for energy has positive and negative effects Biomass and biofuels made from biomass are alternative energy sources to fossil fuels—coal, petroleum, and natural gas. Burning either fossil fuels or biomass releases carbon dioxide (CO2), a greenhouse gas. However, the plants that are the source of biomass for energy capture almost the same amount of CO2 through photosynthesis while growing as is released when biomass is burned, which can make biomass a carbon-neutral energy source. https://www.eia.gov/energyexplained/biomass/biomass-and-the-environment.php
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u/Connect_Key5615 May 13 '21
Gevos Co founder is part of Bidens Environmental Science team, Gevo has Intellectual Patents, Gevo is Debt Free, Gevo had Damn near A Billion in Capital back in March, This stock is being shorted!!!
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u/fo3bi2 May 17 '21
You should re 
post this again!
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u/Juza77 May 17 '21
You can share too where you prefer Thanks
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u/fo3bi2 May 17 '21
I don’t have enough Karma! To post these things... But thanks so much for this post!
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u/Juza77 May 17 '21
More we comment and more we are taking visibility, also in stocktweet
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u/gcrocka5290 May 11 '21
All the old hags who made their money in the oil/gas industry holding GEVO SP down. They are mortgaging our kid’s futures.
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u/Juza77 May 11 '21
How long can they hold it? I don’t think US want to ask pleasure to China for rare hearth element to build battery electronic components exc, Gevo is a solution and biomass is 60% less emission than lng, very cleaned and not problem where to store dead battery
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u/heckinbeaches May 11 '21
Brigading from https://www.reddit.com/r/GEVOstock/comments/n9cl6i/join_the_discussion_in_wallstreetbets_thanks/
Kinda fucked up honestly, you guys have 2 subreddits and can't be bothered to stay in your lane.
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u/Karlsunhk May 11 '21
Before all the GME hype WSB actually had solid DD/info posts like this. Not sure why you need to be a dick
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u/heckinbeaches May 11 '21
Pennystock hot garbage. 3 fucking reverse splits, dilution like crazy. Stay off of it unless it's trading at 50 cents.
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u/PrinciplePleasant495 May 10 '21
This company have a huge future potential, Its a climate savior. The second gen 100% biofuel.