Aemetis Inc (AMTX)

[JR30]

Bi partisans wanting to pass legislation extending a $1 per gallon tax break to biodiesel

Nothing new. It's just an extension of an already existing tax break.

Biodiesel has serious issues and can only be used at very low percentages in petroleum diesel without causing issues. Now one of the new things is 2nd generation bio components made from non-food crops which cost more to produce than 1st generation bio components made from food crops. The other is syn diesel, which makes more sense but doesn't have the lubricity of bio diesel or petroleum diesel. AMTX is one of the few companies at the forefront of production. Unfortunately, bio and synthetic fuels will always be more expensive than traditional petro and therefor can only compete if there is a government subsidy. Using biodiesel is like choosing to use a battery operated vehicle. No one really likes them, and they only make sense to buy one if there are government subsidies to lower the cost so they can be competitive.

AMTX should be a great stock to invest in short term (couple of years imo), but covered calls are a great way to make good profits off of this stock if done wisely due to its high volatility.