Gevo, An Extremely Overvalued Ethanol Plant, Has Failed With Its Isobutanol Project
- Gevo has spent $66 million over the past three years trying to retrofit its plant for isobutanol with little progress.
- In March 2014, Gevo announced it will start producing ethanol, which signifies it has failed its isobutanol project.
- When compared to the production per year of the other pure play US public ethanol producers, PEIX and GPRE, Gevo's value is $0.20 per share.
- Whitebox, a distressed lender, lent Gevo $25.9M at a 15% rate and is backed by the company's ethanol plant, its only asset. $25.9M is about the company's true intrinsic value.