What's GEVO and why it's a good investment to consider
Investing in stocks is quite interesting and challenging at the same time. There are tons of companies to invest in.
Author:Paolo ReynaMay 24, 202145K Shares1.6M Views
Investing in stocks is quite interesting and challenging at the same time. There are tons of companies to invest in. There are a lot of industries to choose from. Some investors have diversified portfolios, meaning they invest in tech, healthcare, EV, finance, and other industries.
Gevo was one of the stocks that saw a massive increase when Biden was elected. Although Gevo stock was affected when almost all stocks corrected starting in February, still, it remains stable and it seems like it will never go back to the penny stock room.
If you haven’t been invested in Gevo, here are some things about the company that will tell you why it’s a stock worth considering.
About Gevo
Gevo, Inc. is a corporation that specializes in green fuels. To attain zero carbon pollution and reduce carbon emissions, the organization commercializes oil, jet fuel, or diesel fuel.
Clean energy biodiesel, isooctane, isobutanol, organic aircraft fuel, isobutylene, ethanol, and animal feed are among the company's other brands. Methanotech, Inc. was the company's previous name until March 2006, when it moved to Gevo, Inc. Gevo, Inc. is based in Englewood, Colorado, and was established in 2005.
According to the company’s website, Gevo is bringing to market the next generation of renewable gasoline, jet fuel, and diesel fuel with the ability to produce zero carbon emissions, meeting the market need for cleaner alternatives to reduce greenhouse gas emissions.
Gevo's raw materials are low-carbon renewable resource-based carbohydrates, and the company is well on its way to producing renewable energy and renewable natural gas for use in manufacturing processes, resulting in low-carbon fuels with a low carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle).
In utilities and engines, Gevo's goods perform as well as or better than conventional fossil-based fuels, but with significantly lower greenhouse gas emissions. Gevo's invention not only solves fuel issues, but it also allows some plastics, such as polyester, to be manufactured with more sustainable materials.
The price of oil and the importance of reducing carbon emissions that would otherwise raise greenhouse gas emissions determine Gevo's ability to enter the growing low-carbon fuels market. Gevo claims that its proprietary technology, which allows it to use a variety of low-carbon renewable feedstocks to manufacture price-competitive low-carbon goods like gasoline parts, jet fuel, and diesel fuel, has the power to develop venture and corporate returns
that support the establishment of a multi-billion dollar company.
A Penny Stock Worth Investing In?
Before this year, Gevo stocks were just an ordinary penny stock that investors pump and dump. It never got out of the penny stock territory until 2021.
GEVO stock has just come out of penny stock territory, trading at $6 per share when January came in. However, now that it's no longer below $5 per share, this biofuel bet might have more space to go.
What is the reason for this? Although Biden's victory has boosted the stock by 262% in the last month and more than 1,687% in the last six months, it isn't the only factor driving investor interest. As our Louis Navellier discussed in December, the company's largest game in 2020 was its contract with commodity giant Trafigura.This supply contract, which involves supplying 25 million gallons of bio-fuels annually, could generate billions of dollars in revenue for this small business in the coming years.
Just wait, there's more. The company's latest announcement about its "Net-Zero Projects" has piqued interest in the stock even further. Given its recent parabolic movements, it may be prudent to proceed with caution. However, with Biden pressing hard for a zero-carbon world, GEVO stock could see more gains in the coming years.
What’s Hyping Gevo Stocks?
The election of Joe Biden, without a doubt, was the reason for the sudden uptick in GEVO stock last November. His green energy policy will invest heavily in the energy sector, with the aim of making America carbon-neutral by 2050. Biomass is converted to renewable hydrocarbons and isobutanol using Gevo's technology. These, in effect, can be used to make jet and diesel fuel, as well as gasoline and plastics.
This does not seem to be quite "green." After all, we're also talking about pollution-producing internal combustion engines. The secret to Gevo's goods, however, is that they are "carbon neutral" and "net zero." Since they are not consuming fossil fuels, the carbon emitted has already been absorbed by the biosphere. Using Gevo's carbon-neutral fuels will enable airlines and transportation companies to keep their fleets running as they move on to a more permanent solution, such as electric power.
In other words, Gevo is a stage in the transition from current reality to widespread EV (or hydrogen) embrace.
Is It Worth Investing In Gevo?
GEVO currently has more than $500 million in cash on hand, no debt, and over a billion dollars in future contract value. If you've been paying attention to the news, you've probably noticed how the major oil companies are becoming increasingly worried about restrictions imposed by the new administration, as they, too, see the writing on the wall.
What we believe will happen is that GEVO will have green patent technology that they can sell to these oil companies. Before attempting to reinvent the wheel, Big Oil will partner with established technologies (look at what happened with FCEL and Exxon). Big Oil's transition to renewable energy will be necessary, and we expect GEVO to secure some partners soon.
With this, Gevo is definitely worth considering. You should think about it carefully while going all-in on some stocks like EV and tech. The election of Biden had a great impact on the price of this stock and while he’s the President of the US with the goal of making his country a green one, Gevo will always have a chance.
Besides, its CEO is currently working under Biden’s administration. The future is upon this stock and we believe that we’ll eventually get where Gevo is going.
Paolo Reyna
Author
Paolo Reyna is a writer and storyteller with a wide range of interests. He graduated from New York University with a Bachelor of Arts in Journalism and Media Studies.
Paolo enjoys writing about celebrity culture, gaming, visual arts, and events. He has a keen eye for trends in popular culture and an enthusiasm for exploring new ideas. Paolo's writing aims to inform and entertain while providing fresh perspectives on the topics that interest him most.
In his free time, he loves to travel, watch films, read books, and socialize with friends.
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