Gevo, Inc. (NASDAQ: GEVO) is having a strong day in the market today, and for good reason. The company announced that it has adopted a new type of yeast a its production facility. Of course, the news led to excitement among investors who are sending the stock upward. Today, we’ll talk about:
- The news;
- whast we’re seeing from GEVO; and
- what we’ll be watching for ahead.
GEVO Announces Adoption Of eBOOST™
As mentioned above, GEVO is having a great start to the trading session this morning after the company announced that it has adopted eBOOST™ yeast at its production facility in Luverne. eBOOST™ yeast is used for the enhanced production of ethanol. Ultimately, this special type of yeast is known to offer improved yields and enahnced profitability. In a statement, Patrick Gruber, CEO at GEVO, had the following to offer:
We were pleased to have worked with Royal DSM to trial its eBOOST™ solution as part of its commercialization phase. We liked the results we saw, so we are adopting eBOOST™ going forward for the production of ethanol. While we are continuing to aggregate demand for isobutanol, jet fuel, and isooctane with a view to building out large capacity for those products, ethanol production is the key to driving profitability in the near term. We can see the path to profitability. Adopting technologies such as eBOOST™ is one of the steps on that path. We look forward to continued work with Royal DSM.
What We’re Seeing From The Stock
One of the first lessons we learn when we start to work in the market is that the news causes moves. In the case of Gevo, the news proved to be overwhelmingly positive. With the adoption of eBOOST™, the company will see improved profitability, which is always a great thing! So, it’s no surprise to see that the stock is headed for the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:19), GEVO is trading at $7.96 per share after a gain of $0.31 per share or 4.06% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on GEVO. In particular, we’re interested in tracking the increased yields and profitability offered by eBOOST™. We’re also interested in following how the cmpany takes advantage of recent news that the EPA increased isobutanol blend limits in gasoline for on-road use and the growth in revenue as a recent of the recent long-term agreement entered into with Avfuel. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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