Gevo Has Finally Reached Levels That Make The Shares Attractive

Jun. 21, 2022 5:11 AM ETGevo, Inc. (GEVO)47 Comments
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  • Green Energy is one of the macro-trends that we are heavily invested in, along with Lithium-ion battery recycling and functional beverages that address the growing global Type-2 diabetes epidemic.
  • Recently, we decided to take another look at Gevo, Inc. after the stock price declined to levels not seen since December of 2020.
  • The recent ATM offering of 33,333,333 shares at a price of $4.50, along with 5-year warrants at an $4.37 exercise price was met with extreme disapproval by the market.
  • After this capital raise, the company sports a balance sheet with a war-chest of over $555 million in cash and cash equivalents.
  • The average price target among five Wall Street analysts is $16.67 which implies a price gain over the next twelve months of almost 568%, based on a closing price of $2.49 on Friday.

Airplane and biofuel tank trailer on the background of airport. New energy sources

Scharfsinn86/iStock via Getty Images

If you've been following Altitrade Partners, for any length of time, you know that we are focused primarily on the micro-cap space and finding public companies that met the criteria for long-term investments in developing global macro-trends.

Two year chart of Gevo, Inc.

Gevo 2-year chart (Fidelity Active Trade Pro)

Gevo ATM Offering - Screenshot

Screenshot of SEC Filing For Gevo Offering (SEC Filings)

Screenshot of Closing on Gevo Offering

Screenshot of Closing of Gevo Offering (SEC Filings)

Screenshot of Options Alert For Gevo on Benzinga Website

Gevo Options Trading Alert From Benzinga (Benzinga)

Screenshot of Gevo Options Time & Sales

Gevo Options Time & Sales Screenshot (Fidelity Active Trader Pro)

Gevo Consensus Ratings on Tip Ranks

Analyst's Consensus Ratings For Gevo (TipRanks)

Screenshot of Tip Ranks Analyst's Consensus on Gevo

Analyst's Consensus Ratings For Gevo (TipRanks)

Screenshot of 1-year Stock Chart on GEVO

1-year Stock Chart For GEVO (Stock Charts)

This article was written by

Altitrade Partners profile picture
My investment experience includes a Wall Street career spanning over 35 years. I am retired now, and spend my time as a full-time trader and investor. I especially enjoy the research process and am always looking for the next big ten-bagger. My focus is on small caps, undiscovered companies and special situations.

Disclosure: I/we have a beneficial short position in the shares of GEVO PUT OPTIONS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclosure: I am/we are short GEVO cash-secured puts and long shares of BIOF.

Disclaimer: We are not responsible for updating this article, or our opinion on any of the stock(s) that are mentioned in our articles. We are not in the business of giving investment advice and ask that readers refrain from asking us for it. Please do your own due diligence before investing. We are not responsible for any actions that you take based on the opinions that we express on Seeking Alpha, or our Google blog.

Please remember that this article reflects our current opinion on GEVO. It is based on information that was publicly available at the time that we authored this article. Additional public information might have been available but was not brought to our attention at the time we began preparing this report. We provide sources and links to information that we include in our reports but take no responsibility for the accuracy of their content. An investor should consider that new information may become available regarding the company's business activities, financial condition, or corporate governance. It is the responsibility of each investor to make sure that they stay abreast of any new developments that could have an impact, either negative or positive, on their investment.

GEVO may need to raise additional capital in the future, to continue with its strategic business plan. There, however, can be no assurance that they will be successful in obtaining such financing, on favorable terms. If the company is successful in raising capital, it could result in dilution to existing shareholders, by increasing the total number of common shares outstanding. The company's financials are available to investors through publication in the company's quarterly and annual reports and SEC filings. We strongly encourage investors to read these financial statements and always take them into consideration when deciding whether to invest in the equity securities of any company.

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The information contained herein contains forward-looking information within the meaning of Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934 including statements regarding expected continual growth of the company and the value of its securities. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 it is hereby noted that statements contained herein that look forward in time which include everything other than historical information, involve risk and uncertainties that may affect the company’s actual results of operation. Factors that could cause actual results to differ include the size and growth of the market for the company’s products, the company’s ability to fund its capital requirements in the near term and in the long term, pricing pressures, unforeseen and/or unexpected circumstances in happenings, pricing pressures, etc. Investing in securities is speculative and carries risk.

Micro-cap stocks carry additional risks beyond those of higher classes of securities including, but not limited to trading outside of a listed exchange, potential liquidity issues, dealing with penny-stock rules, lack of margin eligibility, a possible absence of transparency regarding BBBO quotes, a limited number of Market Makers willing to provide depth to the order book, potential issues regarding financing activities, inadequate capital to execute on the company’s business plan, going concern caveats, and the potential inability to compete with larger companies due to limited financial and personnel resources. Please invest responsibly. We encourage individuals to only invest what they can afford to lose, up to a maximum of 100% of their investment.

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