Gevo, Inc. (NASDAQ: GEVO)
Gevo is having an incredibly strong day in the market today as it edges its way into double-digit gains. One of the big reasons for the strong growth we’re seeing in the stock is anticipation of the company’s earnings report. On Tuesday, after the closing bell, the company will report its earnings for the second quarter. Given the strong history, this could prove to be a massive catalyst. Today, we’ll talk about earnings history, what to expect from the stock, and why I maintain an incredibly bullish opinion on GEVO.
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GEVO Will Report Earnings Tuesday
As mentioned above, Gevo is scheduled to report its earnings for the second quarter on Tuesday after the closing bell. If history is any indication, this could lead to some big excitement surrounding the stock. You see, while the company is still in loss territory, they have done a great job when it comes to narrowing that loss, and analysts are expecting that we will see more of the same. In fact, analysts expect that the company will generate a loss of $0.15 per share. If this is, indeed, the case, it will represent a massive improvement over the same quarter one year ago, when the company reported a loss of $1.23 per share.
What I’m Expecting From The Earnings Report
All in all, I have an overwhelmingly bullish opinion of what we can expect from the Q2 earnings report from GEVO. In recent reports, the company has beat earnings expectations. For this quarter, I’m not expecting to see anything different. With several new agreements coming on board in the quarter, two commercial flights, and more, I’m expecting that earnings will likely blow consensus estimates out of the water.
Why I Maintain A Bullish Opinion
If you’ve followed my work here or elsewhere, you know that I have an overwhelmingly bullish opinion when it comes to GEVO. There are several reasons for this. Here are a few of the most important:
- $5 Isn’t Out Of Reach – At the moment, the stock is trading at well under $1 per share. While I never advise blindly following analyst opinions, there is always some validity to their research. In the case of GEVO, analysts see this stock feasibly getting to $5 per share. Even if it doesn’t get that high over the next year, anything close would represent tremendous growth on the stock.
- Right Place, Right Time – Another reason that I maintain such a bullish opinion on the stock is the fact that the company is in the right place at the right time. At the end of the day, the world has become aware that burning fossil fuels is bad for the environment. Through isobutanol, GEVO has found a cleaner fuel for cars, boats, and even airplanes! This is incredibly important in the world’s fight for greener energy and will likely lead to high volume sales in the long run.
- Delisting No Longer An Issue – A major concern among investors that has been holding the stock down as of late has been delisting. In order to maintain its listing on the NASDAQ, Gevo has to maintain a bid price of at least $1 per share. In a recent interview between myself and the CEO at the company, it was made clear that delisting wasn’t going to happen. While he couldn’t give any specific plans, Pat did say that they would be dumb to let themselves get delisted. This kind of confidence in the fact that it wasn’t going to happen was exactly what I was looking for.
The bottom line here is that GEVO is a great company with a great product. While the company is facing delisting from the NASDAQ, chances are that this is not going to happen. Moving forward, I believe that we’re going to see massive gains as the company continues to prove that it has immense intrinsic value.
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What Do You Think?
Where do you think GEVO is headed moving forward? Join the discussion at TalkTRENDZ!
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