Aemetis Inc (NASDAQ: AMTX) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that it has completed the construction of an advanced biodiesel pre-treatment unit, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for with regard to AMTX ahead.
AMTX Gains Big On Biodiesel Pre-Treatment Unit
As mentioned above, Aemetis is having an overwhelmingly strong start to the trading session after announcing the completion of an advanced biodiesel pre-treatment unit. In a press release issued early this morning, the company announced that its Universal Biofuels subsidiary in India has completed the construction of an advanced biodiesel pre-treatment unit. The unit is designed to process the low-cost feedstocks to be provided to the plant under the BP Singapore Pte Limited (BPS) supply agreement.
In the release, AMTX said that this new pre-treatment unit allows the use of high Free Fatty Acid waste feedstocks by Universal Biofuels while meeting the biodiesel quality standards set by international fuel standards. The unit was built in order to supply biodiesel to the EU and US under a 3-year supply agreement signed with BPS in 2017. In a statement, Eric McAfee, CEO and Chiarman at AMTX, had the following to offer:
The completion of the advanced biodiesel pre-treatment unit enables the team to focus on commissioning and processing BP’s low-cost feedstocks provided under the BPS supply agreement to produce and sell low carbon high-quality biodiesel into international markets… We expect to receive feedstock and begin production in April with shipments to BPS to begin in the second quarter of 2018.
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 was overwhelmingly positive. After all, Aemetis is one step closer to production under a 3-year supply agreement. So, it’s no surprise to see that the stock is making a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:01), AMTX is trading at $2.36 per share after a gain of $1.24 per share or 110.71% 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 launch of production under this 3-year supply agreement. Not to mention, there has been tons of positive news surrounding the stock, and CNA Finance Chief Strategic Analyst, Kenny Soulstring recently released this report. Nonetheless, we’ll continue following the story closely and bringing the news to you as it breaks!