Yawns Greet Gevo, Inc. (NASDAQ:GEVO) News

Gevo, Inc. (NASDAQ:GEVO)

Gevo, Inc. (NASDAQ:GEVO) shares gained 0.71% after the renewable energy technology company announced it will partner Los Alamos National Laboratory (LANL) to improve the energy density of some of its hydrocarbon products. The two are also to share ideas on ways to fine tune the composition of the catalysts used in Gevo’s proprietary ETO process.

GEVO Stock Performance

Shares of Gevo continue to trade in a downtrend despite the signing an agreement with LANL. The company faces an uncertain future especially on the stock dropping below $1, a minimum requirement for continued listing in the NASDAQ.

Gevo, Inc. (NASDAQ:GEVO) has been under pressure since the start of the year as seen by the stock losing more than 80% in market value. Investor confidence on the stock is at all-time low. Industry observers are keenly waiting to see if the LANL deal is the catalyst that will help breathe life into the stock.

Gevo, Inc. (NASDAQ:GEVO)

LANL – GEVO Collaboration

LANL and GEVO are planning to develop a low-cost catalytic technology that is to be integrated into an existing isobutanol-to-hydrocarbons process that reportedly produces high-energy density fuels. HEDFs are currently being used by the U.S military in air and sea-launched cruise missiles.

“Currently, certain HEDFs are supplied by limited suppliers, so the DOD is interested in supporting alternative sources of these fuels, and potentially at a lower cost. The added benefit that this would be a renewable fuel that helps reduce greenhouse gas emissions is just icing on the cake,” said Dr. Patrick Gruber, Gevo’s Chief Executive Officer.

ATJ – Virgin Airlines Deal

Separately, Gevo, Inc. (NASDAQ:GEVO) has inked a deal that paves way for it to start supplying its renewable alcohol-to-jet fuel (ATJ) to the Virgin Australia Group. The airline will be responsible for coordinating purchase, supply, and blending of ATJ into the fuel system at the Brisbane Airport. The Queensland government has already echoed its support for the arrangement which it says is the first step in the development of renewable jet fuel.

Gevo, Inc. (NASDAQ:GEVO) is to supply the ATJ from its hydrocarbon plant in Texas. The company plans to expand its production capabilities at the Luverne Facility to meet the growing demand. Plans are also underway to obtain binding supply contracts for a combination of isobutanol and hydrocarbon products, which should be equal to the expected capacity increase.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Ballard Power Systems (NASDAQ:BLDP) Shares Jump on Consortium Membership

Ballard Power Systems Inc. (NASDAQ:BLDP)

Ballard Power Systems Inc. (NASDAQ:BLDP) announced its membership in California’s “Fuel Cell Electric Bus Commercialization Consortium” (FCEBCC). This consortium will receive funding for the deployment of 20 zero-emission hydrogen fuel cell electric buses at two California transit agencies. Ten buses are to be deployed each with the Alameda Contra-Costa Transit District the Orange County Transportation Authority. News of the deal sent BDLP shares up almost 7% in after-hours trading on light volume.

Ballard will be providing 20 of its FCveloCity®-HD 85-kilowatt fuel cell engines to New Flyer of America Inc., a subsidiary of New Flyer Industries Inc. (“New Flyer”), the largest transit bus and motor coach manufacturer and parts distributor in North America. Ballard’s engines will power New Flyer 40-foot Xcelsior XHE40 fuel cell buses, which are planned to be delivered and in-service with AC Transit and OCTA by the end of 2018. The buses are to be supported by advanced hydrogen fueling infrastructure provided by The Linde Group.

Ballard Power Systems Inc. (NASDAQ:BLDP) has powered buses for over a cumulative 10 million kilometers (6.2 million miles) in revenue service – more than any other fuel cell company – and New Flyer has been very active in the North American fuel cell electric bus market. These efforts have contributed to improving the durability and reliability of these buses while demonstrating fuel economy 1.4x higher than diesel buses and 1.9x higher than CNG (compressed natural gas) buses.

Ballard Power Systems Inc. (NASDAQ:BLDP) sales slipped in 2015 from 2014 when it posted $68.7 million, In 2015 Ballard Power Systems Inc. (NASDAQ:BLDP) posted a sales figure of $56.5 million. BLDP shareholders have not experienced positive EPS in the last five years. In 2011 there was an EPS loss of $0.44, followed by losses of $0.48, $0.20, $0.22, and $0.04 respectively. Analysts from four firms follow Ballard Power Systems Inc. (NASDAQ:BLDP) and three rate BLDP as a “Strong Buy” while one rates the shares as a “Hold”. The consensus price target for BLDP is $3.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/13/2017
Ticker Symbol BLDP
Last Price a/o 5:34 PM EST  $                      2.01
Average Volume                    634,500
Market Cap (mlns)  $                  335.77
Sales (mlns) $74.60
Shares Outstanding (mlns) 168.73
Share Float (mlns) 156.87
Shortable Yes
Optionable Yes
Inside Ownership 0.50%
Short Float 3.17%
Short Interest Ratio 7.84
Quarterly Return 3.65%
YTD Return 20.61%
Year Return 56.69%