Corporate Milestone Gives Gevo, Inc. (NASDAQ:GEVO) a Major Boost
Following a few sessions of remarkable chart growth, Gevo, Inc. (NASDAQ:GEVO) is cooling off a bit today. So is the euphoria over or the stock is just way oversold at the moment and it simply needs a little break?
Both, we’d assume. It all started two days ago when Gevo announced the launch of the first two commercial flights using the company’s renewable alcohol to jet fuel, both scheduled to take off in Seattle and land in San Francisco and Washington D.C, respectively. And while both jets got off to a flying start, so did GEVO shares as they went up an astonishing 50% by the end of the day. Similarly, another 50%+ gain occurred yesterday feeding off the momentum gathered on Tuesday. As a result, GEVO quickly found its way to the most actively traded stocks list with a record-breaking volume of 125 million shares.
Over the course of the last two trading sessions alone, GEVO‘s per-share value skyrocketed from $0.45 to $1.36 before subsiding to $0.96 per share at the closing bell. Needless to say, this development left a lot of investors quite enthused for today, as well, with some of them even expecting the stock to even open at well above $1.00 per share. Did it happen, though?
As it seems, GEVO‘s performance today does not bear even the slightest resemblance to either of the previous two days. One hour before the end of the session, GEVO shares are down 25% to $0.72 per share and the volume of 27 million is nowhere near yesterday’s. And the reasons for this step back are both clear and simple.
First, the stock merely got way oversold with a lightning fast notice, which pushed the stock’s RSI to the 90th percentile. Technically speaking, this could not last forever. Second, GEVO still has a long way to go before its biofuel, which is said to reduce greenhouse gas emissions when blended with traditional kerosene in a ratio not higher than 1:3, becomes the new norm in air travel worldwide. Yet, the first milestone has been achieved and investors are anxiously waiting for more GEVO news to come.
As it seems, GEVO might have a revolutionary product which, in the best-case scenario, could both reduce air travel cost and reduce air fuel pollution. It has every chance of killing two birds with one stone so the sole question that remains here is: will they be able to pull it off?
