Basic Materials

Freeport-McMoRan FCX Stock News

Freeport-McMoRan Inc (NYSE: FCX)

Freeport-McMoRan is having an incredibly strong day in the market today. If you’re worried that you missed the opportunity here, stop! The truth is that the gains are just beginning. Today, we’ll talk about what causes movement in FCX and two big reasons why gains are likely to continue.

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What Causes Price Movement In FCX

In order to understand the opportunity surrounding Freeport-McMoRan, it’s important that you understand what it is that the company does. The company is a mining company that focuses on several basic materials. About 67% of the company’s income is generated through copper, 11% is generated through petroleum, 10% is generated through gold, and 5% is generated through molybdenum.

Knowing this, it becomes clear that when these commodities gain in price, FCX generates more profits from sales. Primarily, when copper climbs, the company does incredibly well. However, it is important to remember that all products play a role here.

Two Big Reasons The Stock Is Likely Headed Upward

In the introduction of this article, I promised that I would give you two big reasons why FCX is headed upward. Here are those reasons:

Reason #1: Global Push Toward Renewable Energy

Over recent years, we have seen a global push toward renewable energy. Consumers, businesses and governments alike have been working to reduce their carbon footprint on the world. In order to do so, we have to move away from burning fossil fuels and toward renewable energy. This is a great thing for Freeport-McMoRan.

At the end of the day, no matter how the renewable energy is mined, copper is incredibly important. Solar panels, electricity producing dams, and windmills all need the commodity. After all, copper is the best conductor of electricity in the world! As we continue to see a push toward renewable energy, we’re likely to continue to see increasing demand for copper. As the law of supply and demand tells us, this will lift the price of copper, helping FCX drive more profits from the commodity.

Reason #2: Chinese Economic Growth

Throughout most of the year, one of the primary concerns among investors around the world has been China’s economy. After all, this is the world’s second largest economy. So, economic movements in the nation will lead to economic movements around the world. In this particular case, it’s important for FCX investors to remember that China is the world’s largest consumer of basic materials – including copper. This means that as economic growth happens in China, demand for the metal increases. Adversely, economic declines in China will lead to declines in demand for copper.

At the end of the day, China is still struggling. However, we’re starting to see improvements in the economy. As the country works to make its way back up to economic health, we’re likely to see more demand out of the country for copper. This will ultimately cause copper’s price to grow, once again assisting Freeport-McMoRan.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from FCX. The reality is that the company is in the right place, with the right product, at the right time. As the global shift to renewable energy continues to cause increasing demand for copper and the Chinese economy recovers, the price of the metal is likely to climb. Because the vast majority of income comes from this metal, FCX is likely to see gains as well.

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What Do You Think?

Where do you think FCX is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

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hot gold stox ABX VGZ EGO

Barrick Gold Corp. (NYSE: ABX) | Vista Gold Corp. (NYSEMKT: VGZ) | Eldorado Gold Corp (USA) (NYSE: EGO)

The market has been a rough place to be this year. It seems like every time we turn around we’re giving up any chance of gains we were going to see this year. Nonetheless, any time there’s a rough time in the market, we can expect that at least some stocks will be seeing gain. This time around, those stocks are gold stocks. For companies like Barrick Gold, Vista Gold, and Eldorado Gold, the declines in the market overall are actually a good thing. In fact, ABX, VGZ, and EGO have all been experiencing strong gains. Today, we’ll talk about why these stocks are climbing and why these gains are likely to continue for some time.

Why ABX, VGZ, And EGO Are Climbing In Value

As mentioned above, while the market remains incredibly concerning, Barrick Gold, Vista Gold, and Eldorado Gold are doing incredibly well. So, why are these stocks climbing in value while others continue to struggle? The answer is simple.

As the names of all of these companies would suggest, their flagship product is gold. Every one of these companies is focused on mining for, preparing, and selling the precious metal. As a result, when gains in gold are realized, ABX, VGZ, and EGO all see stronger profits from their flagship products. Adversely, when gold prices are down, these companies watch their profits shrink.

Gold Is Gaining Big

Throughout 2016, gold’s price has been skyrocketing, and for good reason. At the end of the day, gold is a safe-haven investment. The commodity was one of the first ever currencies. Not to mention, throughout history, gold has been proven to be the strongest currency ever made. This fact is likely to help ABX, VGZ, and EGO in a big way moving forward.

At the moment, economic conditions are incredibly concerning. Around the world, banks are devaluing their currencies. Not to mention the mess that’s going on in the UK and Europe as a result of the Brexit. The truth is that when conditions like these are happening, investors and consumers use gold as a way to protect their assets. This leads to incredible gains in demand and, ultimately, gains in the price of the precious metal.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Barrick Gold, Vista Gold, and Eldorado Gold alike. The reality is that, given current economic and market conditions, gold is likely to continue climbing in value. As this trend continues, all three of these companies become more profitable. Let’s face it, what do investors like more than profits? Nothing!

With all of that said, it would be foolish to expect to see declines in ABX, VGZ, or EGO. The issues the world’s economy faces are not short-term issues. In fact, I wouldn’t be surprised to see these issues continue for a year or more. As a result, these stocks will only keep climbing.

What Do You Think?

Where do you think ABX, VGZ, and EGO are headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Flickr]

Majestic Silver Corp. AG Stock News

First Majestic Silver Corp (NYSE: AG)

Lately, times have been tough in the market. With global economic conditions weighing, it can be difficult to make the right picks. However, when market and economic conditions are concerning, there are always at least a few stocks that skyrocket. This time around, First Majestic Silver Corp is one of them. Today, we’ll talk about why the stock is climbing, what we’re seeing in the market today, and what we can expect to see from AG moving forward. So, let’s get right to it…

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Here’s Why AG Is Climbing So High

When looking into any gains, the first thing that you need to know about a publicly-traded company is what that company does. As the name First Majestic Silver would tell you, the company’s flagship product is silver. They are focused on mining the commodity, preparing it, and getting it ready for sale.

With that said, there’s a good reason that AG stock is climbing in the market at the moment. Like gold, silver has found its place in the safe-haven world. This means that when market and economic conditions prove to be concerning, investors look to the precious metal as a way to keep the value in their assets. As a result, during these times, we see increased demand and, ultimately, big gains in price.

As a company that is focused entirely on silver, AG is heavily dependent on price movements in the precious metal. When silver heads upwards in price, the company makes more profit. Adversely, when silver is headed down, the company’s profits fall.

Silver Is Up, Leading To Gains In The Stock

Look around, my friends; silver is skyrocketing, and that’s a great thing for First Majestic Silver. The gains are the result of major global economic concerns. The year 2016 has been an incredibly rough one around the world economically, and, recently, things have been expected to get worse.

Recently, the UK consumers voted to leave the EU. This is expected to cause economic hardships around the world. With the United States already on a brink of a recession, this action could send the world’s largest economy spiraling. With all of this going on, central banks continue to devalue currency. As this trend persists, investors are increasingly looking to silver as a way to protect their assets. So, that’s why we’re seeing gains in the value of AG stock.

What We’re Seeing In The Market Today

Not surprisingly, AG continues to climb. Today is yet another day on the uptrend, and the speed at which the stock is trending up is dramatic. Currently (2:32), the stock is trading at $15.92 per share after a gain of $1.08 per share, or 7.28%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from First Majestic Silver. The reality is that the company has the right product at the right time. With global economic conditions already concerning and getting worse, precious metals like gold and silver are likely to go through the roof in value. While this happens, AG will be raking in larger profits, showing investors true value. All in all, things are looking great for the stock. I’m expecting to see further gains!

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What Do You Think?

Where do you think AG is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Pixabay]

Gevo GEVO Stock News

Gevo, Inc. (NASDAQ: GEVO)

Early this morning, I had the opportunity to speak with Pat Gruber, CEO at Gevo. Not only was it enjoyable to have a personal discussion with such a talented person, but I also got a ton of questions answered. Before we get to the answers, I want to give a big thank you to Pat, Anna, and Shawn at Gevo, as well as my StockTwits followers, for helping me compile the questions to ask. With that being said, here’s how the interview went…

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CNA Finance Exclusive Interview With Dr. Patrick Gruber, CEO at GEVO

I’ve been incredibly interested in what I perceived to be test flights with Alaska Airlines. So naturally, the first question I asked surrounded these flights. Flights which I found out were not test flights at all. After asking Mr. Gruber about what I thought were test flights using Gevo jet fuel, he offered me the following answer:

Well, a couple things. One of them, they weren’t test flights. I saw it referred to as that in some of the articles, but all of the testing is done. It took six years to get it done, and it’s a fully approved, qualified jet fuel. So what Alaska was doing was commercial flights where they have purchased fuel, put it on a plane, told customers that they’re flying a biofuel-powered plane, etc. So it was significant in that they were the first ones to go ahead, buy fuel, put it in a plane and be public about it.

What’s interesting about it is that we did a press conference at the airport there. People in the waiting area clapped when they heard about bio-based jet fuel, and the people on the plane clapped when they heard about it. We were on the plane and people came up to talk to us about it. They were very interested in it because they get that greenhouse gasses are an important issue. Jet fuel is one of the big contributors and this is something that can help to mitigate that.”

After learning that the Alaska Airlines flights using the jet fuel from GEVO were not tests, I had to ask if any future flights were coming up. Here’s how Pat answered the question:

Yeah, they can fly any time, and they said they would.”

I love that answer my friends! Anyway, the chat went on to isobutanol. I know we all had a ton of questions there. The first one I asked was whether or not Musket would be distributing isobutanol-related products to only Love’s or outside of the Love’s network. While there wasn’t a direct answer given, Pat did peak my interest by saying:

Musket, I think, distributes outside of their Love’s network. So, if you’re parsing it as Love’s is the retail side and Musket is the distributor side, I’m pretty sure Musket does more than just Love’s. [Jokingly] So, without answering, I answered.”

I went on to ask a question that I was previously asked and one that I found interesting. I asked if GEVO has reached, or is working to reach, agreements with any R&D companies to aid in the production of isobutanol. The answer Pat offered was spot on!

WE DON’T NEED IT! So one of the interesting things is that our product works pretty well. We have, probably, the world’s most capable development group. We’re the only ones to commercialize a yeast that’s been genetically adhered, modified to produce isobutanol on a scale like ours, in a plant like ours. No one else as done that. So, we don’t buy into all this synthetic biology crap that people talk about. We’ve been doing it for years and we’re pretty good at it. So, that’s not been a problem for us.”

So, I wanted to frame the question in a different way. I wanted to see if there were any underlying concerns with regard to production and Gevo’s ability to meet demand. Here’s what Pat had to say:

No, I’m not [concerned about production]. I worry about… my issues always are around capital, capital formation, that sort of thing. That’s where my issues lie. It always takes money to build plants.”

Another question that I was asked by a StockTwits follower was whether or not funding requirements for production expansion were met through the recent offering. Here’s what Gruber had to offer:

These are more to bolster our balance sheet. You know, we’re in the classic situation where our converts become due within a year and we have to pay attention to that and make sure that we are maximizing all value for all. So, it’s much more of, we use some of those proceeds for the plant to help, it’s about business development in general. Growing the business.”

I went on to ask if there were any known EPA actions or lobbyists pushing for EPA actions surrounding bio fuels. Here’s what Pat had to say:

Broadly speaking, no. Everybody’s on hold it seems because… I’m talking about it in a broad general sense… The policy, it’s been on hold for several years with the Obama administration and I don’t know why. It just is. Whenever there’s an election, this stuff does start to get discussed again, because with a change of regime comes a change in the political plays, and everyone wants to do something new.  And I think that, no matter who gets in next, renewables will have a place. There’s no one so conservative on the republican side, if the republicans were to win that… Trump is a middle of the road kind of guy and Hillary is going to be supporting of resource-based stuff, too. Either way, I think it’s good for the renewable resource [industry].”

At the end, I circled around to delisting. I wanted to know if there was a plan to avoid the delisting of GEVO from the NASDAQ. I asked if there were any plans for reverse stock splits or other actions. Here’s what Pat had to say:

You know, I couldn’t talk about any specific plans, but we’d bee kind of dumb to let ourselves get delisted wouldn’t we?”

I went on to ask Dr. Gruber if there was any news with regard to the 180 day extension. Here’s what he had to say:

No, nothing new. Anything we see, we’ll say publicly.”

Finally, I ended with the big M&A Question. Is GEVO putting itself up for sale. Here’s what Pat had to say:

Well, we have retained Cowen as our banker to explore all strategic options. We’re not putting ourselves up for sale, per se, but if the right deal were to come along, we’d be open-minded to it. So, when we say all strategic options, we mean it!”

At the end of the questions I had prepared, I asked Pat if there was anything else he would like to let the CNA Finance audience know. Here’s what he had to say:

We appear to be, I think, at the right place at the right time, with the right technology in that there’s now a focused concern on products like jet fuel. They have to do something, they recognize it. Low carbon fuels are going to be important. It also cuts the cost in the gasoline, that’s going to be important. We have an Exxon [representative] step up and say we have to do something about carbon emissions. Everybody should recognize that that’s a big deal. That’s the biggest energy company in the world saying, ‘hey we really need to do something, we should do something.’ Our technology, we believe, is the lowest cost technology to do these standard hydrocarbons for gasoline and jet fuel. And, so, our task at hand is to get people in line, get the customers, get the tanks, form the capital, build the plant, and get on with it. But I think in terms of technology, we’re in good shape. In terms of timing, I think we’re in good shape.”

Final Thoughts

Before my discussion with Pat, my opinion on GEVO was a bullish one. After today’s discussion, I have to say that I’m taking an even more bullish approach. It seems as though all items are pointing toward continued growth. Also, I don’t see delisting as a concern anymore, something will be done. All in all, things went great and I maintain my bullish opinion on the stock.

Also, I will be doing interviews with more CEOs regularly from here on out. Before each interview, I will be announcing plans on StockTwits and asking for questions to ask. To make sure that your questions are answered, follow me on StockTwits or TalkTRENDZ.

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What Do You Think?

Where do you think GEVO is headed and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Wikimedia]

Barrick Gold ABX Stock News

Barrick Gold Corp. (NYSE: ABX)

The investing landscape has been a very interesting one this year. Unfortunately, we’ve seen incredible volatility, which has made picking profitable stocks a bit more complex. Nonetheless, even in highly volatile markets, we find incredible opportunities. One of those opportunities is Barrick Gold. Lately, the stock has been skyrocketing, and if history is any indication, the gains are going to continue. Today, we’ll talk about why ABX is climbing and why the gains are likely to continue for quite some time.

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Why ABX Is Climbing In Value

The reason Barrick Gold is climbing in value is relatively simple. You see, the company is the world’s largest gold mining company. As a result, the company is really in the right market at the right time. At the end of the day, when gold gains in value, profits at ABX get larger, and gold is going to grow!

Gold, like any other commodity, is largely dependent on the law of supply and demand. Low supplies and high demand ultimately lead to gains in value. Also, gold is a safe-haven investment, which makes gauging price movements a bit more complex.

As a safe-haven investment, the demand for gold tends to climb when economic or market conditions are called into question. The truth is that, for the first half of the year, there have been more questions about the global economy and global market than there have been answers. So, we’re seeing big gains in the demand for gold, and, therefore, the value of gold. The fact that the price of gold has climbed by 25% through the first half of the year has supported an incredible bull run on ABX. In fact, gains are continuing today. Currently (3:16), the stock is trading at $23.14 per share after a gain of $0.74 per share, or 3.30%, so far today.

We’ve Only Seen The Tip Of The Ice Burg

If you think Barrick Gold is likely to start seeing declines, you might want to think again. The truth is that the stock is gearing up for more gains, and big gains at that.

As mentioned above, gold is a safe-haven investment, and when gold climbs, so, too, does ABX. At the moment, there are major uncertainties revolving around the global economy. Recently, the British people voted to leave the EU in a move that is being called Brexit. This action has tremendous economic implications for the world.

With the UK now leaving the EU, we are likely to see economic hardships in both regions as they move through the transition. Because these are two of the top five economies in the world, the effects of the Brexit are likely to radiate globally. The UK will need to renegotiate trade agreements with the world while the EU’s economic instability will only get worse.

While this happens, we’re likely to see more volatility in the global market. As conditions grow more and more concerning, the world’s largest indices will continue to see increasing numbers of trading sessions in the red. All of this will happen while investors turn to gold as a way to protect their financial assets. At the end of the day, this will lead to continued growth in demand for and the price of gold, as well as continued growth in the value of ABX.

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What Do You Think?

Where do you think ABX is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance.

[Image Courtesy of Pixabay]

Chesapeak Energy Corporation CHK Stock News

Chesapeake Energy Corporation (NYSE: CHK)

Chesapeake Energy is having an incredibly rough time in the market today, and for good reason. The company is falling victim to lower oil prices. Recently data came out with regard to US oil reserves that’s sending the value of the commodity tanking. Today, we’ll talk about the data, how the market is reacting to the news, and what we can expect to see from CHK moving forward. So, let’s get right to it…

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CHK Tanks On US Oil Data

As mentioned above, Chesapeake Energy is having an incredibly hard time in the market. The stock is falling in tandem with oil, as recent US data surrounding the commodity is causing concerns. A recent study was released today, showing that US oil reserves are becoming a big issue.

According to the data that was released earlier today, the United States now holds larger oil reserves than Saudi Arabia and Russia. This is the first time in history that this has happened. According to Rystad Energy, the United States is estimated to hold about 264 billion barrels of oil. This is a huge reserve when we compare it to Saudi Arabia’s 212 billion barrels or Russia’s 256 billion barrels. This is sending the value of oil downward, and CHK is following the trend.

On top of the news that the United States is now holding more oil than Saudi Arabia and Russia, investors are also concerned about rig counts in the country. In fact, during four of the last five weeks, US rig counts have been heading upward. Over this period of time, 10 more rigs have come on board, adding to the global supply glut. Today, the US has 431 operational oil rigs. That number is up by 10 over the past 5 weeks. This, unfortunately, is more bad news for CHK and its investors, as it insinuates further declines in the commodity to come.

How The Market Reacted To The News

As investors, one of the first things that we learn when we get started in the market is that it is very important to watch the news. After all, the news causes movement in the market. When good news is released about a publicly-traded company, we can expect to see gains in the stock associated with that company. Adversely, negative news leads to declines. Unfortunately for Chesapeake Energy, the news that was released was overwhelmingly negative. It shows that supply glut issues in oil are continuing in a big way, which will weigh on the company’s profits. As a result, we’re seeing sharp declines in the value of the stock today. Currently (2:09), CHK is trading at $4.22 per share after a loss of $0.38 per share, or 8.17%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bearish opinion of what we can expect to see from CHK. The company’s profits are largely derived from oil. Therefore, it is highly susceptible to changes in the price of oil. Unfortunately for Chesapeake Energy, and its investors, the landscape with regard to oil simply isn’t looking great at the moment.

First and foremost, the supply glut surrounding the commodity continues to grow. This will only cause oil to continue to fall in value. In return, CHK is likely to yield lower revenues and diminishing profits. However, that’s not where it stops. Another big key here is the fact that the global economy isn’t looking great. With the Brexit in mind, China struggling, and the US barely staying above water, economic conditions around the world are very concerning. This means that consumers are likely to work to use less oil, reducing their expenses. Unfortunately, reduced demand is likely to lead to more declines in the commodity and more hardships for CHK.

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What Do You Think?

Where do you think CHK is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

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Vista Gold Corp VGZ Stock News

Vista Gold Corp (NYSEMKT: VGZ)

Vista Gold has had an incredible time in the market as of yet. The good news is that if you think you’ve missed the opportunity here, you couldn’t be more wrong. At the end of the day, the stock has plenty more room to climb. Today, we’ll talk about why VGZ is headed upward and why there’s plenty more room for the stock to head upward.

Why VGZ Has Had Such A Great Time In The Market Lately

As mentioned above, Vista Gold has had an incredibly strong time in the market as of late, and for good reason. The story surrounds a recent vote out of the UK.

For some time, there have been politicians in the UK that have argued that its relationship with the EU is causing economic pain. As a result, these politicians argued that the best move for the UK would be to leave the EU. However, there are plenty of politicians that argued the opposite.

On the other side of the fence, some politicians argued that leaving the EU would cause more economic pain for the UK. While they didn’t disagree that the relationship is leading to struggles, they warned that leaving the EU wouldn’t be the best way to handle things.

Soon, it was up to the British people. They recently voted to exit the UK. As a result, the UK and the European economies were called into question. This was great for VGZ.

Why The Brexit Was Great For The Stock

To understand why this sent VGZ upward, it’s important that you understand what the company’s product is. As the name of the company insinuates, Vista Gold is a company that is solely focused on gold. They mine, prepare, and sell the precious metal on the open market.

The Brexit was great news for gold. After all, the precious metal is considered to be a safe-haven investment. Therefore, when market or economic conditions are called into question, we can expect to see gains in gold as investors look to the precious metal to keep their money safe. Unfortunately, the Brexit has incredible implications for the economies of the UK and Europe and could lead to global economic hardship. As a result, gold is climbing in value as investors look to keep their assets safe. This is sending VGZ skyward.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Vista Gold. At the end of the day, the company has the right product at the right time. At the moment, global economic conditions are concerning to say the least. No one knows the extent to which the Brexit will lead to economic hardship in the UK, Europe, and around the world. This is leading to incredible market uncertainty and causing investors to look for ways to keep their money safe.

Today’s safe-haven climate is very different than what it was in the past, which also benefits VGZ. The reality is that bonds are no longer a great option due to low interest rates and other stimulus. The Swiss Franc lost its safe-haven status a while ago. So, at the moment, the two strongest safe havens are gold and silver. So, we can expect to see more gains in these commodities moving forward. Naturally, this will send the value of VGZ skyrocketing.

What Do You Think?

Where do you think VGZ is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Pixabay]

Stone Energy SGY Stock News

Stone Energy Corporation (NYSE: SGY)

Stone Energy Corporation is having an incredible time in the market today. The gains are following up on what we saw yesterday and come for good reason. Yesterday, the company announced that it had terminated one agreement and signed another. Today, we’ll talk about the news, how the market reacted, and what we can expect to see from SGY moving forward.

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SGY Terminates Ensco Contract

The first part of the announcement that was made yesterday surrounded the fact that Stone Energy has decided to terminate a long-term contract. The contract was with Ensco, surrounding deep water rigs. In order to terminate the contract, the company has agreed to pay penalties.

First and foremost, SGY will pay $20 million to Ensco. It is estimated that $5 million of this total was already given to Ensco pursuant to the drilling services contract. Also, the company has agreed to provide Ensco with the opportunity to perform certain drilling services. Finally, the company has paid Ensco a $5 million deposit that will be used as credit against future drilling activities initiated before March 31, 2017.

Stone Energy Enters Agreement With Williams

Also in the press release yesterday, SGY announced that it had entered into a new agreement. The agreement is an interim gas gathering and processing agreement with Williams. The gathering and processing will take place at the Mary field in Appalachia. This new contract provides SGY with near-term relief, as it allows the company to resume production at the Mary field. In return, the company will be able to provide greater volume to Williams.

It is expected that volumes out of the Mary field will come in around 45 MMcfe per day in the beginning. However, by July, that volume is expected to climb to 60 MMcfe per share, and by August, it should climb to 100 MMcfe per day. According to the release, the above volumes are in addition to the approximately 20 MMcfe per day of production from the Heather and Buddy fields. In a statement, David Welch, President and CEO at SGY, had the following to offer:

We are very pleased to reach agreements with both Ensco and Williams on these two important contracts. The termination of the Ensco contract eliminates a long term obligation, which provides Stone with additional financial flexibility. The interim contract with Williams allows us to resume profitable production and positive cash flow at our Mary field in West Virginia. We appreciate Ensco’s and William’s willingness to work with Stone during this difficult period of sustained low commodity prices.”

How The Market Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. Anytime positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with the company. In this particular case, the news released by SGY was overwhelmingly positive. As a result, we saw strong gains in the market yesterday. Today, these gains are continuing as the stock rockets upward. Currently (12:31), the stock is trading at $13.73 per share after a gain of $1.67 per share, or 13.85%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed opinion of what we can expect to see from SGY. In the short term, I’m expecting that more gains will come as the company works to make it through a rough time for those in the basic materials sector. With the cancellation of one contract and signature on the new contract, the company has made a way to survive.

However, investors don’t just like to see survival. They like to see companies thrive. Given the current market conditions, thriving simply doesn’t seem like something that’s going to happen any time soon. So, there is quite a bit of long-term downside risk. Therefore, if you decide to move on an SGY trade, please do move with caution.

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What Do You Think?

Where do you think SGY is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Wikipedia]

Amyris AMRS Stock News

Amyris Inc (NASDAQ: AMRS)

Amyris is having a strong day in the market today, and for good reason. The company recently announced that it entered into an agreement surrounding cosmetic ingredients. Investors are expecting that this agreement will lead to big gains in revenue and profits. Today, we’ll talk about the details of the agreement, how the market is reacting to the news, and what we can expect to see from AMRS moving forward. So, let’s get right to it…

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AMRS Enters Collaboration Agreement

As mentioned above, Amyris is having an incredibly strong day in the market today as the result of a collaboration announcement. Early this morning, the company announced that it would be teaming up with Givaudan. Givaudan is a leading flavors and fragrances company that does business around the world.

The agreement surrounds a research and development project. According to the news, AMRS and Givaudan will team up to develop proprietary fragrance ingredients. The new agreement is expected to stay in effect for several years.

This is an incredibly important agreement for AMRS. While the companies have worked together in the past, the partnership is now significantly expanded. Ultimately, the partnership reinforces the diversity and underlying value associated with the company’s research and development platform and manufacturing capabilities.

Under the agreement Amyris will be taking advantage of its industry-leading strain engineering platform. The platform will be used to design cosmetic active ingredients and help to scale them for global commercialization. The goal here is to launch several target products over the coming years that offer significant performance, cost, and sustainability advantages to their customers.

Following the announcement, we heard comments from both the CEO of AMRS and the President of Givaudan’s Fragrance Division. Here’s what they had to say:

We are excited to be working with Givaudan to solve supply challenges and deliver sustainable innovation in cosmetic activities. We are very pleased with the Givaudan commitment to innovation and its leadership in delivering breakthrough advancements in Active Cosmetics… The collaboration validates, once again, our belief that Amyris offers its customers the fastest time to market from target identification to production of multiple tons of high quality ingredients via its disruptive approach toward meeting partners’ requirements. We are making our planet better, delivering consumers cultured ingredients that are better for them while improving our partners’ business performance.” – John Melo, AMRS President and CEO.

We are very pleased with our ongoing partnership with Amyris. As our company continues to look for innovative and sustainable solutions to availability and cost challenges, we are expanding the relationship to apply Amyris’s technology to a whole new field… The partnership will derive synergistic benefits from Givaudan’s deep understanding of Active Beauty area and Amyris’s world class biotechnology platform.”

How The Market Reacted to The News

As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the company as a result. Adversely, when negative news is released, we can expect to see declines. In this particular case, the news that was released with regard to AMRS was overwhelmingly positive. So naturally, we’re seeing strong gains in the value of the stock today. Currently (1:09), the stock is trading at $0.39 per share after a gain of $0.04 per share, or 10.71%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Amyris. The company has proven its capabilities in the development of new ingredients for cosmetic applications. As a result, they have earned yet another collaboration agreement. All in all, it seems as though things are headed in the right direction for the company. So, I’m expecting to see gains in AMRS moving forward.

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What Do You Think?

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Gevo GEVO Stock News

Gevo, Inc. (NASDAQ: GEVO)

Gevo has been an incredibly interesting stock to watch as of late. Recently, the company’s shares have been soaring in price. However, it is racing the clock. If share values don’t get to $1 each by July 25th, the company faces being delisted from the NASDAQ. Nonetheless, I have to say that I’m not concerned. In fact, I see no reason why the company wouldn’t be able to reach this mark. Today, we’ll talk about why I, along with many others, maintain such a bullish opinion of GEVO.

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GEVO Has The Right Product At The Right Time

Let’s face it, it doesn’t matter what company you’re talking about, a company really isn’t a company without a product to sell. When it comes to Gevo, the company has the right product at the right time.

The company is focused on the manufacturing of biofuels and other renewable chemicals. One of the most notable chemicals is called isobutanol. To create this, GEVO came up with a technology that includes metabolic engineering, synthetic biology, chemical engineering and chemistry. Through their technology, they have been able to create isobutanol and other renewable fuels from discarded feedstock.

At the moment, the global view on how energy and fuels are generated is changing. Over the years, we have noticed the effects of greenhouse gasses on our planet. Unfortunately, the effects have been anything but positive. As a result, governments, businesses, and even consumers are looking for ways to reduce their carbon footprint on our planet. This falls right in line with the goals and products at GEVO. As a result, the company is perfectly positioned for big gains to come.

Customer Contracts Make The Stock Appealing

Gevo hasn’t just been sitting around creating renewable fuels. Let’s face it, having a great product is awesome, but you have to sell that product to make money. Well, the company isn’t lacking in this area either. In fact, since 2011, the company has been creating agreements with some great customers. One of them is the United States Military. Outside of the military, here are some of the other agreements we’ve seen since 2011:

Companies That Signed Agreements With Gevo In 2011

  • Mansfield Oil Company of Gainsville
  • Land O’Lakes Purina Feed LLC
  • The Coca Cola Company
  • Northwest Advanced Renewables Alliance

Companies That Signed Agreements With Gevo In 2014, 2015 and 2016

  • Total Additives & Special Fuels – 2014
  • Alaska Airlines – 2015
  • BCD Chemie – 2015
  • Musket Corporation – 2016

As you can see from the list above, GEVO has compiled an incredibly compelling list of customers to date.

This Test Could Send Sales Skyrocketing

Most recently, we’ve seen quite a bit of news about Alaska Airlines when looking up Gevo, and for good reason. Under the agreement Alaska Airlines signed with the company in 2015, when Gevo’s jet fuel made it through the regulatory process, it would be used in test flights. Two test flights were recently run using the renewable jet fuel.

At this point, we are awaiting the results of these test flights. Obviously, the jets that were used in the tests landed safely, but we do not know key details. Details including how the fuel performed, how the jets reacted to the fuel, and more are expected to become available relatively soon.

This could be absolutely huge for GEVO. If the two test flights went well, we can expect that Alaska Airlines will start using the renewable jet fuels in commercial flights. This would send the company’s sales of renewable jet fuels skyrocketing.

This Could Just Be The Tip Of The Iceberg

However, I don’t think it would stop there. If Alaska Airlines does start using Gevo’s renewable jet fuel, it will be able to say that it is the first airline to fly on renewable fuels. This would be great for Alaska Airlines, as it will make the company more appealing to consumers.

Of course, when competition sees one company making money on something, they want to jump in too! In this particular case, if the test flights prove to have gone well, and Alaska Airlines does start to use the renewable fuel, leading to increased sales, other airlines will likely start to create agreements with GEVO as well. The implications with regard to sales potential could be absolutely massive!

Isobutanol Agreement Also Supports Growth In GEVO

Another major factor to consider here is a recent agreement surrounding isobutanol. As mentioned above, isobutanol is a renewable fuel the company created using proprietary technology. Now, it looks like this product is going to climb in a big way too. Recently Gevo signed an agreement with the Musket Corporation.

Under this agreement, the Musket Corporation will be using isobutanol in gasoline blends. At first, the blends will be designed for marine and off road indications. Nonetheless, this is expected to expand further.

One of the most important parts of this agreement is who the Musket Corporation is. You see, they are one of the larger distributors in the Love’s Family of Companies. Love’s is massive and gives GEVO great reach into the fuels market. In a statement, Dr. Patrick Gruber, Chief Executive Officer at Gevo, had the following to say with regard to the agreement:

We believe Musket is an excellent partner to expand the use of isobutanol in gasoline blends, as our isobutanol production at Luverne builds. Musket and Love’s are significant players in fuel distribution and retail in the U.S., so they have great reach to get our isobutanol into the market…”

The Bottom Line

At the end of the day, I can understand why some are concerned about GEVO. If the stock doesn’t reach $1 per share soon, it faces being delisted from the NASDAQ. Nonetheless, it’s got a month to get there, and with recent gains and fundamental news, I see no reason why it wouldn’t reach this mark. All in all, the company is well positioned for growth as its products fall in line with global needs. I’m expecting to see long-run gains in the stock.

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Where do you think GEVO is headed moving forward? Join the discussion at TalkTRENDZ from CNA Finance!

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Gevo, Inc. GEVO Stock News

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Gevo, Inc. (NASDAQ: GEVO) Before we get into this interview, I'd like to extend a special thanks to my friend Joey who both set up the...