This clean energy penny stock is set for
a big 2023. This is a NASDAQ listed
company with a market cap of less than
500 million dollars, but they have Supply
contracts worth more than 100 billion
dollars with some of the world's largest
and most respected companies. Contracts
with state-owned companies and with U.S
government departments. When I last spoke
about this stock I said that it was
about to gain 20 in the coming weeks and
would test resistance at that level
which is exactly what happened so
congratulations to the thousands of
investors and Traders who watched that
video and banked some easy money the
stock that I am talking about today is
of course Gevo Inc (NASDAQ:GEVO) this stock is heavily
backed by institutional investors the
main ones being BlackRock, State Street
and Vanguard who own close to 50% of the
outstanding shares of the company and
have been adding to their position and
it is very easy to see why these
companies are not selling their shares
but are actually adding to the position
in Gevo Inc. I will discuss all of this in
this video and give you my prediction
for short-term gains when I look at the
technical analysis later in this video
so if you enjoy my videos and want me to
keep creating regular updates then can I
ask you to smash the Thumbs Up And
subscribe to the channel if you're new.
I'm aiming to get 200 likes again on
this video help me achieve this goal and
turn on notifications to make sure that
you do not miss out on any new content
like this now let's get straight into it
who are Gevo Inc gevo Incorporated is a
renewable chemicals and advanced
biofuels company focused on
sustainability gevo addresses the market
need for reducing greenhouse gas
emissions with sustainable Alternatives
and is commercializing the next
generation of biofuels with diesel
gasoline and jet fuel that have the
potential to achieve zero carbon
emissions gevo uses low carbon renewable
resource-based carbohydrates as raw
materials and is developing renewable
electricity and renewable natural gas
for use in production processes
resulting in low carbon fuels with
substantially reduced carbon intensity
and substantially reduced greenhouse gas
emissions. #climatechange #cleanenergy
Gevo (Nasdaq:GEVO) believes that it's proven patented
technology enables the use of a variety
of low carbon sustainable feedstocks to
produce price competitive low carbon
products in addition to addressing the
problems of fuse gevos technology also
enables certain Plastics such as
polyester to be made but more
sustainable ingredients.
Gevo Stock currently operates two main plans
where feedstock is separated into its
components and the stage goes to the
fermentation process to make biofuel
while the protein becomes animal feed
that is fed back to cows which they use
to produce natural gas gevo produces a
range of products such as jet fuel
across a wide range of markets including
the aviation industry and the automotive
industry providing gevo with an enormous
total adjustable Market of 888 billion
gallons per year. #amc
gevo's next earnings report is due next
week on March 9th and will give a
significant update on the company's
current standing however
with the market cap of gevo stock
currently sitting at just 450 million
dollars I see this company as being very
significant value at the moment
when we look at the charts we will see
that the stock has leveled out over the
past few months and is sitting just
above the Stock's lowest point for
several years.
trading volume is still a few million
shares every day so there is significant
interest in gevo stock
and looking at the Stock's moving
average
over the past three months we can see
the gevo has began to Flatline
it has dropped as much as it will drop
and I will explain in a moment with the
help of the most recent earnings report
when we look at fintel data we will see
that gevo has major support from
institutional investors the likes of
Vanguard group State Street and
BlackRock being the major investors that
have been increasing their positions
in fact looking closer at this we can
see that they own nearly 200 million
dollars worth of gevo stock
so when you consider that the current
market capitalization of gevo is only
455 million that amounts to these major
investors owning close to 50 of the
company
now sometimes it's easy to forget that
the likes of BlackRock and Vanguard have
positions in most stocks on the market
but it is rare to see these institutions
in particular owning such a significant
portion of a company's overall stock and
looking at the financial statements I
think it is easy enough to see why they
don't feel that this is a major risk
when we look at the balance sheet of
gevo we can see that they have total
assets of 729 million dollars and total
liabilities of just 104. this gives the
company a total stockholder Equity
valuation of 624 million
so its Equity valuation is about 150 of
the company's total market
capitalization
So based on this
the company could be considered to be
about 200 million dollars undervalued at
its current price
now usually in this situation I would
expect to see that the assets would be
largely made up of something intangible
like Goodwill
and that would explain why the company
is undervalued to such an extent but
this is not the case for Gevo Inc there is
no Goodwill on gevo's balance sheet and
in fact gevo's cash and cash equivalents
the current market Securities and the
long-term restricted cash actually
amount to nearly 500 million which means
that the market cap is actually below
the current cash value which is
incredibly rare to see
and in terms of liabilities although the
total is 104 million over 67 million
dollars of this is made up of long-term
bonds with only 17 million of current
liabilities these are the liabilities
that are due within the next 12 months
17 million is only a fraction of their
net cash position so as I said a moment
ago it is easy to see why the likes of
BlackRock and Vanguard are not selling
this stock and don't consider this to be
particularly risky to hold this is still
very much a long-term play
now when we look at the company's income
statement gevo had very little income to
date this is to be expected of any
pre-revenue company
and this has been the way Forge Evo for
the past number of years but as the
company has moved closer to their net
zero one facility and other projects we
will begin to see revenues shortly and
this should be a turning point for the
company but there is much much more to
this I find that a lot of investors seem
to be forgetting that this is not just
any pre-revenue company who have yet to
find a market for their product this is
a company that already has contracts in
place to sell their product they just
need to produce it once gevo got their
facilities into full flow they can start
supplying and fulfilling contracts that
they already have agreed
these are major contracts with some of
the world's biggest companies just look
at deals like this that they have
already signed and are just waiting for
Gevo Inc to be able to produce
Iberia Airlines
which is Spain's national Airlines six
million gallons per year for five years
Qatar Airways one of the world's two
biggest Airlines 5 million gallons per
year for five years and these are just
the latest contracts
Alaska Airlines 37 million gallons per
year for five years
America Airlines 100 million gallons per
year Aer Lingus 6 million gallons
been Air 7 million gallons Japan air 5
million gallons per year
then there is the deals with Delta
Airlines and one world Alliance for 75
million gallons per year and 200 million
gallons per year
as you can see these are all major major
contracts with not just major airlines
but a lot of these Airlines tend to be
their country's National Airlines these
are companies that tend to have state
ownership or at least semi-state
ownership and do massive due diligence
before signing any contracts with
suppliers
these are massive contracts between
these deals as approximately between
these deals there is approximately 500
million gallons per year from just the
contracts that I have mentioned and as
we can see here the Delta Airlines
agreement is valued at approximately 2.8
billion dollars of Revenue over the
seven years
2.8 billion dollars and yet this is only
a small fraction of the overall
contracts that the company has signed
like with many of the biggest companies
in the world it takes years and years
before they ever get to production and
this has been the case for gevo now the
bad news is that gevo are still several
years away from being in a position to
significantly Supply these contracts but
they are not that far away from
beginning to supply with the net zero
one project set to begin production in
2024
which means that once again there will
be very little Revenue this year and
they will incur losses once again
but look at the losses their last for
full year 2022 will be approximately 100
million dollars but they have cash and
securities easily to cover at least one
or two more years without any major
issues
that being said gevo have hinted at
raising cash by issuing debt and some
dilution will be likely
but recently gevo appointed Harold
battleshell as director she previously
served as principal deputy director in
the office of policy at the U.S
department of energy
in her 10 years with the doe Cara LED
multi-billion dollar technical programs
ran the Energy Efficiency and renewable
energy field operations office and was a
contributor to two multi-agency energy
policy reviews so clearly she is a very
well connected person
who could prove to be a valuable asset
to Gevo Inc prior to the Department of
energy Carroll worked for 25 years in
the energy in the energy industry for BP
where she held rules in operations
management strategic development
financial management and policy
development
but it is the timing of disappointment
and Carol's connections that interest me
the most because of this
at the invitation of the Department of
energy gevo has submitted part 2
application to the does title 17 loan
agree program and have begun the Doe's
loan guarantee process this process
could take several months
as the department of energy loan
programs office perform due diligence on
the project
so what do you think about this I think
the appointment of Carol battle shell
will play a huge role in the process of
Gevo Inc getting this loan over the line and
look at this to date lpo loan has
provided companies with more than 30
billion dollars in debt financing
this loan would significantly reduce the
need for gevo to dilute shareholders
when we talk about upcoming catalysts
for stocks this is a major one
so as I said earlier it is no surprise
to me that the likes of BlackRock and
Vanguard are happy to sit on this stock
and own nearly half the outstanding
shares without selling
so tell me what you think drop a comment
down below personally I feel that if the
company gets the loan approved then this
will provide the finances needed to get
all the way to Major production it will
erase the need for dilution it will
erase any doubts about the long-term
potential for gevo and I feel that this
will send the share price soaring
this could make several hundred percent
remember that the current market cap is
only 450 million but they have contracts
that could amount to hundreds of
billions
so the question now is one of timing so
let's look at the charts before we look
at this here are some analysis that I
did back in December
I said that this will make an easy 20
within a few weeks
up to a price of about two dollars and
eighteen cents look at it now the stock
hit the price exactly like I said it
would on the 18th of January and
proceeded to hit resistance at this
level several times throughout January
and February guys this is not rocket
science sometimes it's very easy to see
what's coming
as long as you know what to look for if
you appreciate this analysis or even
just appreciate that I was exactly right
with my previous analysis then all I ask
you to do is hit the thumbs up on this
video
of course if you want to catch these
stocks before the runs and make the
gains
then I highly recommend that you hit the
Subscribe button and turn on
notifications
looking at the charts today we can see
that there is a clear upward channel
that the stock was moving in just after
hitting bottom in December hitting
resistance several times in January
then the downward movement came in
February however gevo has gone on hit
bottom again in the past week and
starting to move upwards on Friday
with a very positive RSI and earnings
coming later in the week I think there
is a chance to make nice short-term
gains on gevo stock once more and any
significant news could push this
to break resistance so guys what do you
think of that are you bullish on gevo in
2023 or do you think that there is a
better play in the clean energy Market
if you enjoy my videos then help me stay
alive on YouTube and smash the thumbs up
subscribe to the channel if you're new
drop a comment down below and let me
know your thoughts also I only took a
quick look at the chats in this video
and I have been asked many times to
cover more technical analysis in my
videos
so what do you think is this something
that I should do
should I look at the charts in more
detail in future or should I focus more
on upcoming Catalyst and fundamental
analysis like for example in gevo's case
the new director and the progress of the
loan application let me know your
thoughts
and remember to vote on what video you
would like to see next as always I do
try to respond to all comments
and whatever is voted for I will make a
video about if you are not a member of
the Discord Community then check that
out and and talk to me about what you
think of any stocks thanks for watching
and I'll catch you in the next video