Gevo, Inc. (NASDAQ: GEVO)
Gevo is having an incredible time in the market at the moment. However, I believe that the gains that we’re seeing on the stock are nothing more than a drop in the bucket compared to the gains we’re likely to see moving forward. Today, we’ll talk about three reasons why it’s a good idea to get in on GEVO before it’s too late.
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Reason #1: Alaska Airlines Tests GEVO Jet Fuel
First and foremost, the biggest story that’s revolving around Gevo at the moment is its agreement with Alaska Airlines. Recently, this agreement took hold in a big way. Alaska Airlines made the decision to run two test flights using renewable jet fuel created by the company.
If these test flights go well, Alaska Airlines will likely continue to use the renewable fuel in future flights. This will likely send GEVO earnings skyrocketing. Not to mention, if things do go well, other airlines will want to be able to advertise the use of clean jet fuel. So, the sky really is the limit at the moment.
Reason #2: Marine And Off Road Indications
As if bringing their jet fuel to the market wasn’t enough GEVO recently announced another agreement that has the potential to send the company’s sales skyrocketing. Late last week, the company announced that it had entered into an agreement with Musket Corporation.
Under the new agreement, Gevo will be providing isobutanol to the company for blending with gasoline. Musket is a major fuel distributor and is part of the Love’s Family of Companies. According to the announcement that was made last week, the initial uses of the blended fuel will likely include marine and off-road markets. In a statement, Dr. Patrick Gruber, CEO 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 the fuel distribution and retail in the U.S., so they have great reach to get our isobutanol into the market…”
Reason #3: How We Look At Fuel
I have to say that I’m not in the least surprised that we’re seeing so much positivity when it comes to GEVO at the moment. The reality is that, as consumers, the way we look at fuel is changing. Over the past several years, we have been hearing about the dangers of burning fossil fuels. As a result, we look to cleaner forms of manufactured energy.
Gevo is a company that is focused on the development of chemicals and clean fuels. So, the company is right in line with consumer sentiment when it comes to fuels. As a result, as the world continues to shift away from the burning of fossil fuels and toward cleaner options, GEVO will likely continue to see growth in revenue and earnings as its products prove to be one of the go-to options for clean fuel. All in all, things seem to be going well for the company, and I’m expecting the stock to continue reflecting this positivity.
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What Do You Think?
Where do you think GEVO is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!
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