/biz/ - Business & Finance

Why don't we do some proper DD on GEVO since so many people will be looking into buying. I'll post some preliminary research, and people with more info can add on. Also if any TA fags could contribute, that would be great.

Earnings: Has beaten estimates for the past 3 quarters.

Q4(2015)-Q1(2016): Estimated spread of +8¢, actual spread of 14¢. Highlights:
• ASTM certification of GEVO fuel

Q1(2016)-Q2(2016) Estimated spread of +5¢, actual spread of ???. Highlights
• Agreement for Clariant Corp to develop GEVO catalysts.
• Hired Cowen & Company for Financial analysis
• Successful Alaska Airlines flight on GEVO fuel (first real flight)
• 9.5million$ IPO of GEVO owned stock
• Agreement with Musket Corp to supply Isobutanol gasoline mix to marine markets and automotive markets in Arizona, Nevada, and Utah.

GEVO has had a ton of activity this quarter. IPO means they need more cash, All of these agreements costs them money and they are probably bleeding. +5¢ doesn't sound too difficult to beat, but they might be struggling. However this doesn't matter too much if their guidance looks good for the next quarter. Which really looks good actually. Success with their new products and further supply of an old product means they should be looking for more revenue come Q3.

Problem is GEVO is volatile as fuck. One little mess up could kill investor confidence and send this sucker to rock bottom.