Gevo (GEVO) Stock: A Long Term Opportunity That’s Hard To Ignore

Gevo Inc GEVO Stock News

Gevo Inc (NASDAQ: GEVO) is headed up yet again in the market, working to recover from recent declines associated with a public offering under which the company is raising $50 million. While the dilution is painful, the long term potential of GEVO is hard to ignore. Here’s how I see it.

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Why GEVO Represents A Great Long Term Opportunity

For some time now, scientists have been warning about the environmental effects of fossil fuel emissions. In fact, as a result of these dangers there are efforts around the world to reduce the carbon footprint of human beings on the earth.

This has led to the popularization of wind and solar power. We’re seeing more use of water power and fuel cells. Low-emission vehicles are now the norm, and the world is continuing to look for more ways to improve the environmental condition. That all bodes well for Gevo.

The company’s claim to fame is a proprietary process by which it has the ability to turn waste carbon into high-quality, clean, renewable fuels. In fact, the company’s fuels are so high quality that its jetfuel has been used to fly passenger airplanes.

The work that GEVO has done over the years has been impressive. But impressive doesn’t always equate to dollars. One thing that does is agreements. GEVO recently announced an agreement with a subsidiary of Trafigura Group. Under the long-term agreement, Trafigura Group will purchase more than $1.5 billion worth of the company’s clean fuels. That’s a huge deal, especially when you consider the fact that the company only has a market cap of around $75 million.

This Is A Big Break

The agreement between Trafigura Group and GEVO is huge news for the company and its investors. The fact of the matter is that while the company has a great, clean fuel product, it can be difficult to get consumers to shift from what they know and love to something new.

The agreement signed by Gevo shows that the company’s fuel products are in demand. As more and more consumers use these renewable fuels, awareness will continue to rise. Considering all that we hear about the carbon footprint and its affect on our planet, I believe that as more consumers become aware of this option, more will use it.

Ultimately, this deal is the first big step down a path that could lead to substantial growth for GEVO stock ahead.

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