Aemetis Inc (NASDAQ: AMTX) is having an overwhelmingly strong start to the trading session this morning, following up on the gains that we saw on the stock yesterday. So, what’s the deal? The company announced that it recently produced bio-diesel using high FFA, lower cost feedstock using a recently constructed treatment unit. Of course, this excited investors, leading to gains in the value of the stock. Today, we’ll talk about:
- The news;
- what we’re seeing from AMTX as a result;
- and what we’ll be watching for ahead.
AMTX Reaches Major Milestone
As mentioned above, in a press release issued yesterday, Aemetis announced news surrounding its Universal Biofuels subsidiary. According to the release, the company has completed production of high quality distilled biodiesel from lower quality, hgih Free Fatty Acid (FFA) waste feedstock. The production was completed using the recently constructed pre-treatment unit. With the ability to use lower cost, high FFA waste feedstock, the pre-treatment unit allows for production of a final product that meets or exceeds the biodiesel quality specifications of international fuel standards. In a statement, Eric McAfee, Chairman and CEO at AMTX, had the following to offer:
The production of distilled biodiesel from high FFA waste feedstock using the new pre-treatment unit is the result of a year of technology development and construction work by our India operations and engineering team alongside key vendors… The Aemetis plant in India is now capable of converting low cost, high FFA waste feedstocks into high quality distilled biodiesel to be sold into the fast-growing India fuels market and the attractive EU and US markets for waste-based biofuels.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, with the news, we learned that the newly constructed unit is working as expected, and more importantly, has the ability to assist in the production of high-quality fuels from low-quality feedstock. So, it’s no surprise that excited investors are sending the stock toward the top. At the moment (9:46), AMTX is trading at $1.74 per share after a gain of $0.55 per share or 3.28% 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 AMTX. In particular, we’re interested in following the company’s continued work to reduce the cost of biofuel while maintaining quality and becoming a leader in the space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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