January 24, 2013 at 06:31 AM EST
One Executive Order and an Alternative Energy Beneficiary
One Executive Order and an Alternative Energy Beneficiary

EmergingGrowth.com, a leading digital financial media company, Reports on Alternative Energy Programs and Gevo, Inc. (NASDAQ: GEVO), Coca-Cola (NYSE: KO) and Sasol Limited (NYSE: SSL).

 

Whether we like it or not, there will come a day when our reliance on oil and other fossil fuels will have to be taken over by renewable energy sources.  Despite the fact that US oil production is surging and could soon be the world’s biggest producer of the black gold, it is still a smart idea to develop an alternative energy source.  Additionally, President Obama has said that he will continue to fund and support alternative energy programs in his second term.  I believe Gevo Inc. (NASDAQ: GEVO) stands to benefit. 

 

Gevo is on the renewable chemicals and biofuels side of the alternative energy industry.  The company’s main focus is on Isobutanol, a four carbon alcohol that can be used as an added fuel blendstock.  The direct integration of Isobutanol into chemical and fuel products that we already use increases the overall economic and environmental value. 

 

The alternative fuel company has already gotten a green light from the US EPA as a fuel additive and is being tested as a fuel source for the US Air Force.  Back in June of 2012, Gevo completed its first “alcohol to jet” fuel test in an A-10 Thunderbolt II which was successful.  Now, the company has a list of partners that want to use the fuel additive such as Coca-Cola (NYSE: KO), Sasol Limited (NYSE: SSL) and Lanxess, to name a few. 

 

Over the past year, however, shares have fallen 67% as the US economy continues to haggle along with its recovery.  To be clear, alternative energy plays are not meant as short term investments and could take a few years before any meaningful integration into society.  With that being said, Gevo is well positioned already and could see profitability in the next 1 to 3 years.  Looking at the financials, Gevo has a market cap of $79 million and currently has a “buy” rating from analysts.  The stock has no price to earnings but is currently trading at a discount to book value at 0.72.  Furthermore, price to cash is discounted at 0.86.  Another major plus for the stock is its financial strength with a quick ratio of 4.37 and current ratio of 4.55.  Additionally, since business model does not require fast amounts of capital, Gevo only has a debt to equity ratio of 0.49. 

 

Generally speaking, alternative energy stocks are hard to love as high entry costs plague balance sheets with years before any meaningful profit is made, if they last that long.  Gevo’s main biofuel, Isobutanol, does not require big loans and heavy spending to develop, which makes it easier to own if an investor is interested in the alternative fuel markets.  The bottom line here is with a US EPA backing, successful use of the biofuel by the US Air Force and partnerships with big name companies, Gevo is in the beginning stages of a successful business that is surely to prosper.

 

NEW:  Feature your company on EmergingGrowth.com.  Find out how by filling out our referral form here…  http://emerginggrowth.com/recommend-a-company-to-feature-on-emerging-growth

 

About EmergingGrowth.com

 

By offering 100% original and unmatched content by the best financial reporters, writers and bloggers in the business, EmergingGrowth.com is emerging as a leading digital financial media portal. Its services provide users, subscribers and advertisers with a variety of content and tools through a range of online, social media, mobile and other mobile outlets.

 

Since its inception, EmergingGrowth.com has distinguished itself from other financial media companies with its sly approach to reading between the lines in order to locate that needle in the haystack.  Sign up today to see what EmergingGrowth.com has to offer.

 

 

 

Contact:

EmergingGrowth.com

info@EmergingGrowth.com

305-323-5687

 

Join our Linked in Group…  http://www.linkedin.com/groups/?gid=4650356&trk=hb_side_g

 

Like us on Facebook... http://www.facebook.com/pages/EmergingGrowthcom/474647062557938

 

 

 


Disclosure

All information contained herein as well as on the EmergingGrowth.com website is obtained from sources believed to be reliable but not guaranteed to be accurate or all-inclusive. All material is for informational purposes only, is only the opinion of EmergingGrowth.com and should not be construed as an offer or solicitation to buy or sell securities. In addition, Please make sure you read and understand the Terms of Use, Privacy Policy and the Disclosure posted on the EmergingGrowth.com website. Always remember that investing in securities such as the ones listed within are for high-risk tolerant individuals only and not the general public. Whether you are an experienced investor or not, you should always consult with a stockbroker, financial advisor, or similar before purchasing or selling any securities viewed on any emails sent from EmergingGrowth.com or its website.
 

 

 

 

 

Source: EmergingGrowth.com

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here