AEMETIS: Buy The DIP! Short Volume Ratio: 25% (26 Jan)! Here The Next Short Squeeze
Summary
- AEMETIS could increase EBITDA +30Mln and Share price $30!
- Investors didn’t do the math behind two announcemen reported below.
- $18 million x year of previously announced energy efficiency projects.
AEMETIS could increase EBITDA +30Mln and Share price $30!Investors didn’t do the math behind those two announcement considering also that when GEVO (NASDAQ:GEVO) announced the NET-ZERO 1 Project and its capitalization increase to $1.6Bln and Renewable Energy (NASDAQ: REGI) market cap is $3.6 Bln
Mln gallons x year * % production65 mgy * 10% = 6.5 mgy
COST
Cost savings on feedstock = 90%
6.5 mgy * $1.50 x gallon feedstock savings = $9.75 Mln savings x year
REVENUE
Production under “Carbon Zero” * increase of value x 1 gallon
6.5 mgy * $3.00 per gallon increase in ethanol value = +$19.5 Mln EBITDA
Total annual EBITDA from using 10% of production “Carbon Zero”:
Cost savings + increase of Revenue
$9.75Mln + $19.5Mln = $29.25
Consider also:
1) $18 million x year of previously announced energy efficiency projects.
2) the math above is for 10% production of “Carbon Zero”
10% = $29.25 Mln + $18 Mln = +$47.25 Mln EBITDA
The 10% feedstock could be also a prudent estimate. More you replace, more cash flows you get
Analyst's Disclosure: I am/we are long AMTX.
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