GEVO Stock Gains Are Far From Over

Gevo Inc GEVO Stock News

Gevo Inc (NASDAQ: GEVO) has made it to the limelight over the past several trading sessions, and for good reason. The company announced a long-term contract worth more than $1.5 billion and a $400+ million valuation of its IP handed down by a trusted IP firm. All while the stock trades with a market cap of around $90 million.

As a result, the stock has climbed from around $0.50 per share to around $1.20 per share. However, if you think you’ve missed the boat here, think again. The gains are far from over.

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What Is GEVO?

Gevo is a clean-energy company that develops clean fuels. The company uses cellulosic feedstock, essentially raw woods, corn, and just about any other plant matter. This material is refined through a proprietary process, resulting in clean fuels.

The company’s fuels have been used to provide the energy needed for commercial flights, to fuel off-road vehicles, and more.

Recent News From The Company

Recently, Gevo has shared quite a bit of good news. First and foremost, the company signed a long-term contract with Trafigura. Over the term of the contract, Trafigura will be purchase more than $1.5 billion of the company’s jet fuel and other clean fuel products. Even after recent gains, the revenue that this deal has the potential to generate is more than 15 times the value of the company as a whole.

Moreover, Gevo recently reached out to Peak Value, a trusted valuation firm. The goal was to see what the company was worth froman IP valuation perspective. According to peak value, that number came in at over $400 million. Again, we’re talking about a company with a sub-$100 million market cap. So, this valuation suggests that the comapny is worth more than 4 times what the market gives it credit for.

The Opportunity Ahead

Just looking at the Peak Value figure shows you that there’s a strong potential opportunity here. However, the opportunity with regard to GEVO stock goes further than that.

At the moment, we are watching as storms become more intense, wildfires in California become more uncontrallable than ever before, the world is changing. Scientists have told us that this is due to rising temperatures as a result of the overwhelmingly high carbon footprint of human beings on the earth.

As a result, governments, corporations, and consumers alike, are all working to reduce their carbon footprints through the use of clean energy. This has led to a strong push for solar, wind, and water power use. However, fuel is also a big issue.

While electric vehicles help with that in a sense, consumers like workin with what they know, and there will just about always be a demand for gas and diesel-burning vehicles. Gevo’s clean fuels have the potential to fuel these vehicles ahead.

Moreover, the company has already proven the efficacy of its jet fuel product, a product that’s likely to only see rising demand ahead.

The bottom line here is simple. The world is shifting toward clean energy. Gevo is helping to supply the clean fuels that will help in this drastic transition. At the same time, the company is currently valued at about a quarter of what it should be, creating what I believe to be a tremendous long term opportunity for investors in GEVO stock.

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