Thursday, June 04, 2015

SeekingAlpha on Gevo: not thinking about patent issues in the analysis?

In a post titled --Gevo: Increased Working Capital And Potentially Increased Economics --, Dallas Salazar observes the following:


GEVO has finally done something tangible worth a press release.

This is what I like to see - real progress to the core concerns at the company.
GEVO's FCStone engagement will provide near-term benefits and could provide long-term benefits if the company can survive.

GEVO, Inc. (NASDAQ:GEVO) announced today that it has engaged FCStone Merchant Services, LLC, a division of INTL FCStone, Inc. (NASDAQ:INTL) to originate and supply corn for its Luverne operations. While this PR hasn't caused the typical rapid and sharp increase in share price (or did it - GEVO shares skyrocketed ~30% into the close roughly 18 hours prior to this news coming public) I believe this to be the most meaningful PR from the company outside of PR's detailing fund raising efforts.


One will not find a single mention of Gevo's patent situation in Mr. Salazar's post. There is nothing of Gevo patent claims that have been invalidated in IPRs. There is nothing of the infringement lawsuits brought against Gevo by Butamax.

See some relevant IPBiz posts, including

Gevo suffers losses to Butamax at PTAB

Overreaching in patent claims dooms Gevo in district court. No infringement because of estoppel and invalidity through lack of enablement.

CAFC in Shire v. Watson: business as usual in claim construction after Teva

Gevo v. Butamax back to CAFC

Link to SeekingAlpha post:


***Of some interest is a report on 4 June 2015 of a "breakthrough," described in streetinsider in the following way

Gevo, Inc. (Nasdaq: GEVO) announced a breakthrough to its fermentation technology that will allow it to produce isobutanol from cellulosic feedstocks such as wood waste which can then be converted into Gevo's alcohol-to-jet fuel.

Gevo currently makes isobutanol from corn at its plant in Luverne, Minn., but its process has always had the flexibility to adapt to other feedstocks. The process announced today uses forest residuals – the wood scraps that are left over from logging operations – providing a value creating recycling opportunity for waste wood that is traditionally left in the forest, potentially becoming a forest fire hazard. The company has previously announced the testing and use of its alcohol-to-jet fuel derived from its corn-based isobutanol in conjunction with major airline partners and the U.S. military.

Gevo has adapted its patented Gevo Integrated Fermentation Technology® (GIFT®) to convert the cellulosic sugars from wood into renewable isobutanol. Gevo then uses its patented hydrocarbon technology to convert the cellulosic isobutanol into alcohol-to-jet-synthetic paraffinic kerosene (ATJ-SPK) fuel.

The company's cellulosic isobutanol production will be conducted at a demonstration facility in St. Joseph, MO, that the company jointly operates with ICM Inc.


WallSteetPit noted:

Shares of Gevo, Inc. (GEVO) are higher by nearly 9% to $3.70 in pre-market trading on Thursday [4 June] after the company announced a breakthrough to its fermentation technology that will allow it to produce isobutanol from cellulosic feedstocks such as wood waste which can then be converted into Gevo’s alcohol-to-jet fuel.


The Legacy reported:

Gevo (NASDAQ:GEVO) saw a significant growth in short interestin the month of May. As of May 15th, there was short interest totalling 1,969,331 shares, a growth of 216.3% from the April 30th total of 622,520 shares, reports. Based on an average daily volume of 10,154,193 shares, the short-interest ratio is currently 0.2 days. Currently, 24.5% of the shares of the stock are short sold.
Shares of Gevo (NASDAQ:GEVO) opened at 3.40 on Thursday. Gevo has a 52 week low of $1.32 and a 52 week high of $14.85. The stock’s 50-day moving average is $3. and its 200-day moving average is $3.. The company’s market cap is $32.99 million.
Gevo (NASDAQ:GEVO) last released its earnings data on Tuesday, May 12th. The company reported ($0.88) EPS for the quarter, beating the Thomson Reuters consensus estimate of ($1.20) by $0.32. The company had revenue of $5.90 million for the quarter, compared to the consensus estimate of $6.10 million. Analysts expect that Gevo will post $-3.37 EPS for the current fiscal year.


Update on June 5

Dallas Salazar posted another piece on Gevo, but still does not mention anything about patents!

See GEVO: A Meaningful Technological Advance Is A Reason To Raise which includes

GEVO announced its second meaningful PR in two days - could this be the beginning of some momentum?
GEVO needs to raise into what should be an increased interest in ownership - buy a lifeline.
Continue to avoid GEVO unless you're comfortable with investing in binary outcomes.

WOW. GEVO, Inc. (NASDAQ:GEVO) is out with a potentially hugely meaningful PR that could have it back in the mid-term game if it can turn what should be an increased interest in ownership of the company into an effective fund raise. Yes, this PR is highly promotional - the exact thing I've been hammering GEVO for, but this is also promotion tied to a real advancement of the becoming stagnant technology at the company.


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