GEVO Has A Remarkable Day…Tread Lightly

The biofuel company GEVO was the biggest mover of the last two sessions. The stock was trading under $4.00 per share at the close of June 15, but now has traded over $24.00 per share as of today. The initial catalyst for the speculative fervor driving the stock higher was a decision by the EPA to increase the amount of isobutanol used for on-road cars above the previous level. The CEO of GEVO praised the decision, and the biofuel company expects the outcome to be positive for its customers. However, it is extremely doubtful that the current price level of the stock is justified considering the massive loss in share value sustained by the company over the last several years, and the fact that the stock has a very low float of outstanding shares. In reality, the move in price is clearly the result of hype, but it still has provided some great intraday trading opportunities. Let’s look at GEVO in more detail in today’s video.