If you wish to invest in the American stock markets and more specifically in the Gevo Company share price then we strongly suggest you take the time to read this article that provides precise information relating to this company with details of its activities and major sources of income. We also examine the principal competitors on the market and recent partnerships. Finally we will take a few moments to clearly explain the factors you should take into account when compiling a fundamental analysis of this company and its share price.
Firstly, you should of course follow closely the competition in this activity sector. Although the entry barriers to this sector remain relatively high it is important to know and follow the major players that could take parts of the market share from this company.
It is also important to monitor the growth and the difficulties faced by the principal activity sectors targeted by the Gevo Company such as the aviation and agricultural sectors as these could influence the company’s profitability.
Of course, it is also important to follow the provisional plans published by the group where it reveals its objectives in terms of growth as well as the operations it plans to implement in the near future.
The strategic partnerships and signature of major supply contracts are also events that can exert a significant influence on this asset value and you should therefore take them into account when you speculate on this asset.
Finally, you should also take into account the company’s annual financial results as well as those that are published at intermediate times and compare them with the analysts’ forecasts and the objectives fixed in the group’s strategic plans for growth.
We shall now continue with a detailed presentation of the Gevo Company. It is in fact essential to have a thorough understanding of this group and its activities before starting to trade. This will enable you to know its major sources of income and thereby anticipate the effects of certain events on its turnover and profits and therefore indirectly the movements of its share price on the stock markets.
Gevo Inc. is an American company specialised in the energy sector or to be more precise in the marketing of fuel for airplanes, petrol and diesel.
The group currently uses a yeast fermentation catalyser that produces isobutene through the fermentation of renewable vegetal biomass. To better understand the activities of the Gevo Group we can divide them into two distinct sectors as follows:
The Gevo Group currently employs around 30 people and achieves 90.5% of its turnover in the United States and 9.5% from other countries around the world.
Now that you are more familiar with the Gevo Company and its major activities we will turn our attention to this company’s major competitors. It is important you understand the competitive environment of this sector so here we examine the major companies in this sector.
Firstly, this American company is specialised in the biofuels sector and was created in 2005 with the objective of producing cellulosic ethanol from wood and switch grass. The name of the company comes from the Mascoma Lake, close to Libya. It should be noted that it was only in 2014 that the yeast related commercial activities including the name Mascoma were purchased by the Lallemand Inc. Company based in Montreal, Canada. The Lebanese research and development centre was then renamed Mascoma LLC and became a subsidiary of the Lallemand Group. The remaining business activities of the Mascoma Corp including the thermopile bacterial technology, the pilot factory in Rome, New York and the previous registered office at Waltham were then renamed the Enchi Corporation.
This company, also American, is based in Delaware and is specialised in the production of diesel fuel. It operates at least 13 bio-refineries as well as a commodities treatment installation. This company has been included in the Fortune 1,000 stock market classification since 2018.
This is another American refinery company that is specialised in the conversion of different renewable commodities and fuel waste products into diesel fuel for use in the transport industry. The renewable diesel produced by this group is used in existing engines and delivery infrastructures. The group’s activities consist of building, owning and operating a portfolio of refineries that supply environmentally friendly fuels to the automobile, rail, marine, aviation and other sectors.
We now offer you the opportunity to learn about the principal allies of the Gevo Group. In fact this company does not only have adversaries on the market, it can also count on the support from implementing strategic partnerships with other companies to boost its growth such as with the following two examples:
Firstly in 2019 the Gevo Group signed a partnership agreement with a subsidiary of Total, Air Total. In accordance with this agreement the two companies have decided to collaborate to produce and supply sustainable aviation fuel, or SAF, in France and Europe. This fuel is also produced in the Texan Silsbee factory whilst awaiting an extension to the Luverne production facility in Minnesota which should be completed sometime over the next few years. Relating to this, Gevo confirmed its pleasure at collaborating with Air Total which would participate actively in the campaign for the decarbonisation of aviation fuel in France and other European countries. The group also stated that this new agreement with Air Total constituted the first crucial step in its objective to intensify the supply of environmentally friendly fuel to the aviation sector in the European Union. It should be remembered that Air Total in fact currently supplies over 300 airports in 72 countries worldwide.
The second strategic partnership that we shall examine here is that also implemented by Gevo in 2019 with the Praj Industries Company. This American specialist in low carbon alternatives from petroleum by-products obtained a construction licence authorisation with the engineering company Praj Industries. In accordance with the terms of this partnership the Indian group would be responsible for the project management services, or EPCM for the building on Indian territory of a number of renewable isobutanol production units based on the technology owned by Gevo. It should also be remembered here that Gevo had perfected a procedure that enabled the company to obtain isobutanol through the fermentation of sugars. This technology marketed since 2017 was adapted by Praj Industries with the aim of being able to use it for juice, syrup, and molasses provided by sugar cane or sugar beet. In fact, the addition of the isobutanol technology for the product range of Praj Industries was a new step in the group’s commitment to intelligent bio-refineries that promote sustainable decarbonisation. According to the company’s CEO this solution could be possible and even as advantageous in an existing ethanol factory as much as a new factory.
At present the Gevo Company has a number of principal shareholders among which we particularly note the following: The Vanguard Group which owns 2.29% of the stock market capital, Renaissance Technologies LLC with a 1.80% shareholding, Armistice Capital LLC which owns 1.03%, BlackRock Fund Advisors which owns 0.90% of the company shares, Patrick R Gruber with 0.81%, Whitebox Advisors LLC with 0.51%, Geode Capital Management LLC holds 0.44% of the shares, Timothy J Cesarek owns 0.32%, Christopher Michael Ryan with 0.31% and Lynn Lynn Smull has a 0.26% shareholding.
To know how the Gevo share price may move over the medium and long term and according to the type of trading strategy you adopt you should first analyse the share price using several types of analyses. We would notably recommend you complete a full technical analysis based on the real time and historical stock market charts as well as a fundamental analysis based on the events, publications and announcements regarding this company that could prove to be influential on its share price and future.
If you are interested in buying or trading in Gevo Company shares you have the opportunity to complete these operations in different ways. You can physically buy these shares through a specific investment or trading account to add to your stock market portfolio or you may prefer to simply speculate on its share price using derived financial products such as CFDs.
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