Gevo, Inc.
Long

GEVO

690
In the press release, Gevo said that it worked with Peak Value IP LLC to get an understanding of what it’s intellectual property was worth. The firm came back and said that the intellectual property at the company yielded an indication of investment valuation of $412 million.

In the release, GEVO said that Peak Value used an “Income Approach” to estimate the value. This approach focused on discounting projected cash flows from direct Gevo-sponsored projects and potential out-licensing within the renewable biofuel production market.

In a statement, Patrick Gruber, CEO at GEVO, had the following to offer:
I’m pleased to see our IP valuation increasing. Our products work, our technology works, our patents cover our proprietary technology. I’m looking forward to completing the project financing of our large scale production facilities and getting large plants built. Having an external point of view on our patent portfolio, I expect, will be important in attracting investors. Our valuation reflects that we focused on isobutanol as an enabler for low-carbon renewable gasoline, jet fuel, and diesel fuel.

This News Is Huge

The news released by Gevo this morning is overwhelmingly positive. Don’t forget, we’re talking about a company that has a market cap of about $100 million. According to the press release, Peak Value suggested that the company’s real value is more than four times the value the market has given it.

The valuation makes sense too. This is especially the case when you consider the recent contract that has the potential to generate $1.5 billion in long-term reveues for the compay.

The fact of the matter is simple. The world is looking for a way to reduce its carbon footprint. One of the best ways to do so would be through the use of clean fuels. GEVO has the techology and is building the partnerships to satisfy the world’s hunger for clean fuels. That is overwhelmingly profitable, making GEVO stock one for the books.

SHORT TERM 3-mounth TP 1 3$
MEDIUM TERM 6 mounth TP 2 6$
LONG TERM 1 year TP 12-*15$

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