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Did Pat just say they've already produced 70,000 gallons of isobutanol in Q3?
Only 80,000 gallons of isobutanol produced on the quarter, they're ~300,000 gallons short of what they could be producing. I'm assuming they're working on getting the cost to produce down before outfitting partner plants with GIFT.
I've done my DD. Please, feel free to elaborate on your "information." People long on GEVO would love to hear it.
We'll see what happens Tuesday. ($0.06) EPS, $9.5M in revenue, along with a positive conference call will probably bump us over $1.00.
I'm long on GEVO. I understand Musket is a national fuel distributor under the Love's Family of Companies, but entering the on-road market doesn't make sense for GEVO. Butamax carries the on-road market patent.
GEVO is currently capped at producing 1.5 million gallons of isobutanol. Without GIFT licenses or a commercial scale plant, Alaska Airlines won't be putting in a large order.
These people saying GEVO is going to $10, or even $5, on this quarter's earnings are ridiculous. Perhaps end of year, but not this coming week.
No worries there, Gevo has until January 23rd, 2017 to get over $1.00. With Butamax aside, GIFT, and ATJ-SPK they should get over $1.00 before the end of the year. If for some reason Gevo fails to regain compliance I guarantee you they will reverse split to make it happen.
As shareholders, let's hope they take the bank financing route.
I agree, these are pretty realistic estimates.
ASTM approval of ATJ-SPK in commercial aircraft at a 30% blend has been known since April. If you recall, the stock was quiet and went nowhere on the day of approval. It took the Alaska Airlines test flights to send the share price up over 400%.
I'm talking International Civil Aviation Organization (ICAO), NOT ASTM approval. "The ICAO Assembly will now seek to approve these CO2 standards in October 2016, and then ICAO will formally adopt these standards in March 2017." [The Clean Air Act and Aircraft Regulation]
Gevo is currently teamed up with Alaska Airlines, Boeing, and the Port of Seattle to bring a biofuel infrastructure to SeaTac by 2020. This venture will most likely be expedited given the recent EPA ruling. [EPA Press Release]
The biggest question in line is how big of a plant Gevo needs near SeaTac and who is going to fund it. Knowing Gevo's history, they'll turn to dilutive financing.
There is no Loves Truck Stop deal, and a large Alaska Airlines contract won't come until ICAO approves aviation emission standards.
The only major expansion I see is outfitting partner plants with GIFT, and that won't be until this fall.
There is no way GEVO hits $5 in the near term. Consider it lucky if the PPS crosses $1.00 next week.
I'm here, continually adding to my position. Delgado in charge is promising.
Seems like the announcement of a reverse split is less than a week away. Hopefully I'm wrong.
CNA Finance interview with Pat Gruber July 7th
cnafinance.com/gevo-gevo-stock-wed-be-dumb-to-let-ourselves-get-delisted-pat-gruber/10088
I've been incredibly interested in what I perceived to be test flights with Alaska Airlines. So naturally, the first question I asked surrounded these flights. Flights which I had found were not test flights at all. After asking Mr. Gruber about what I thought were test flights using Gevo jet fuel, he offered me the following answer...
“Well, a couple things. One of them, they weren't test flights. I saw it referred to that in some of the articles, but all of the testing is done. That took six years to get it done and it's a fully approved, qualified jet fuel. So was Alaska was doing was commercial flights where they have purchased fuel, put it on a plane, told customers that they're flying a bioful powered plane, etc. So it was significant in that they were the first ones to go ahead, buy fuel, put it in a plane and be public about it.
What's interesting about it is that we did a press conference at the airport there. People in the waiting area clapped when they heard about bio-based jet fuel and the people on the plane clapped when they heard about it. We were on the plane and people came up to talk to us about it. They were very interested in it because they get that greenhouse gasses are an important issue. Jet fuel is one of the big contributors and this is something that can help to mitigate that.
After learning that the Alaska Airlines flights using the jet fuel from GEVO were not tests, I had to ask if any future flights were coming up. Here's how Pat answered the question...
“Yeah, they can fly any time, and they said they would.”
I love that answer my friends! Anyway, the chat went on to isobutanol, I know we all had a ton of questions there. The first one I asked was whether or not Musket would be distributing isobutanol-related products to only Love's or outside of the Love's network. While there wasn't a direct answer given, Pat did peak my interest by saying...
“Musket, I think, distributes outside of their Love's network. So, if you're parsing it as Love's is the retail side and Musket is the distributor side, I'm pretty sure Musket does more than just Love's. [Jokingly] So, without answering, I answered.”
I went on to ask a question that I was asked that I found interesting. I asked if GEVO has reached or is working to reach agreements with any R&D companies to aid in the production of isobutanol. The answer Pat offered was spot on!
“WE DON'T NEED IT! So that's one of the interesting things is that our product works pretty well. We have probably the world's most capable development group. We're the only ones to commercialize a yeast that's been genetically adhered, modified to produce isobutanol at a scale like ours, in a plant like ours. No one else as done that. So, we don't buy into all this synthetic biology crap that people talk about. We've been doing it for years and we're pretty good at it. So, that's not been a problem for us.”
So, I wanted to frame the question in a different way. I wanted to see if there were any underlying concerns with regard to production and the Gevo's ability to meet demand. Here's what Pat had to say...
“No, I'm not. I worry about... my issues always are around capital, capital formation, that sort of thing. That's where my issues lie. It always takes money to build plants.”
Another question that I was asked by a StockTwits follower was whether or not funding requirements for production expansion were met through the recent offering. Here's what Gruber had to offer...
“These are more to bolster our balance sheet. You know, we're in the classic situation where our converts become due within a year and we have to pay attention to that and make sure that we are maximizing all value for all. So, it's much more of, we use some of those proceeds for the plant to help, it's about business development in general. Growing the business.”
I went on to ask if there were any known EPA actions or lobyists pushing for EPA actions surrounding bio fuels. Here's what Pat had to say...
“Broadly speaking, no. Everybody's on hold it seems because... I'm talking about it in a broad general sense... The policy, it's been on hold for several years with the Obama administration and I don't know why. It just is. Whenever there's an election, this stuff does start to get discussed again because with a change of regime becomes a change in the political plays and everyone wants to do something new, and I think that no matter who gets in next, renewables will have a place. There's no one so conservative on the republican side, if the republicans were to win that... Trump is a middle of the road kind of guy and Hillary is going to be supported of resource based stuff too. Either way, I think it's good for the renewable resource [industry].”
At the end, I circled around to delisting. I wanted to know if there was a plan to avoid the delisting of GEVO from the NASDAQ. I asked if there were any plans for reverse stock splits or other actions. Here's what Pat had to say...
“You know, I couldn't talk about any specific plans, but we'd bee kind of dumb to let ourselves get delisted wouldn't we?”
I went on to ask Dr. Gruber if there was any news with regard to the 180 day extension. Here's what he had to say...
“No, nothing new. Anything we see, we'll say publicly.”
Finally, I ended with the big M&A Question. Is GEVO putting itself up for sale. Here's what Pat had to say...
“Well, we have retained Cowen as our banker to explore all strategic options. We're not putting ourselves up for sale per se, but if the right deal were to come along, we'd be open-minded to it. So, when we say all strategic options, we mean it!”
At the end of the questions I had prepared, I asked Pat if there was anything else he would like to let the CNA Finance audience know. Here's what he had to say...
“We appear to be, I think, at the right place at the right time, with the right technology in that there's now a focused concern on products like jet fuel. They have to do something, they recognize it. Low carbon fuels are going to be important. It also cuts the cost in the gasoline, that's going to be important. We have an Exxon step up and say we have to do something about carbon emissions. Everybody should recognize that that's a big deal, that's the biggest energy company in the world saying 'hey we really need to do something, we should do something.' Our technology, we believe, is the lowest cost technology to do these standard hydrocarbons for gasoline and jet fuel. And so our task at hand is to get people in line, get the customers, get the tanks, form the capital, build the plant, and get on with it. But I think in terms of technology, we're in good shape. In terms of timing, I think we're in good shape."
Excellent! Thanks for sharing, ShawnTrade!
When oil hits $65/b.
Anyone have any information/updates on the construction of Highland Envirofuels 20-25MMpy plant? Confirmation of a GIFT license from Praj Industries (India), Porta Hnos (Argentina), IGPC Ethanol (Canada), Highlands Envirofuels (U.S.) would definitely help us stay above $1.00. My assumption is GEVO will reverse split to prevent delisting from NASDAQ.
Highlands Envirofuels PR - http://ir.gevo.com/phoenix.zhtml?c=238618&p=irol-newsArticle&ID=1992650
Highlands Envirofuels Construction Permits - http://www.dep.state.fl.us/air/emission/bioenergy/highlands_envirofuels_llc.htm
Looking positive here! Added to my position today.
I like your statement, but Butamax will most likely control the automotive market.
A sale is great news, but keep in mind GEVO probably won't touch on-road gasoline blendstocks.
Is it true GDSI is in a minimum 30 day quiet period right now?
Here are the Alaska Airlines flights that will be using GEVO's ATJ-SPK on Tuesday, the 7th of June. Both commercial flights are Boeing 737s and will be carrying passengers.
Flight #388
SEA - SFO 1:00pm (PST) - 3:11pm (PST)
Flight #2
SEA - DCA 1:45pm (PST) - 9:59pm (EST)
EPA mandate proposing 18.8 billion gallons of biofuel in 2017, up from 18.11 billion.
http://www.bloomberg.com/news/articles/2016-05-18/obama-s-modest-biofuels-mandate-for-2017-disappoints-producers
I tried to confirm the layoff as well. I couldn't find any other information besides those two mediocre sources and posted here. The steelworker layoff makes sense because Brazil is nearing depression and the demand for the material in the region has decreased.
BH, what info would you like from me? I appreciate the DD in regards to the layoffs.
I like the share structure, as of 11/4/2015 O/S is 489,476,766, that leaves 112,198,729 to reach the A/S. I'm assuming we have about 60-90,000,000 shares left until we reach the A/S. I'm currently holding 1,350,000 shares at an average of .0043. I believe the merger is a huge win win for both Rontan and Global Digital Solutions. Merger news/announcement of Edigimar A. Maximiliano Jr. elected as CEO of GDSI, should send the stock to $0.25+ What I like is that, according to the 10-Q, GDSI "intends to request shareholder approval to increase the number of authorized shares of common stock in the near future." In my opinion, this means GDSI cares about the shareholders. It's extremely rare to come across a stock like this in the OTC that has as much potential as GDSI.
In regards to my post about the layoffs, it appears to be steel related, and the current layoffs were knowledge back in July 2015 (http://ronaldomotta.com.br/crise-gera-corte-de-custos-e-podera-resultar-ate-em-demissao-em-massa/)
PS Deagle, It's been a while since I've been in an OTC play and the Rontan acquisition news captured my eye. I take posts on IHUB with a grain of salt, I enjoy doing my own DD and like to form my own opinion about a ticker. I tend not to post because of the usual bash responses, i.e. Volcano, who add absolutely no value to the conversation.
Not sure if this has been noted, but Rontan has laid off about 380 employees in recent weeks.
Source:
http://www.oprogressodetatui.com.br/noticia.php?idmateria=4448&idsecao=1
https://www.facebook.com/841953232586625/photos/a.841955915919690.1073741828.841953232586625/861839993931282/?type=3
The post is still up, here's the link...
https://www.facebook.com/permalink.php?story_fbid=885061921542609&id=181188081930000
Here's a link to the exact post https://www.facebook.com/permalink.php?story_fbid=885061921542609&id=181188081930000
Here's a slideshow of Megola's medicinal marijuana facility due for inspection.