The price spike on Aug 20th was due to a long-term deal worth $1.5B USD. Following that, an intellectual property firm valued GEVO's IP at over $400M. Considering GEVO's market cap at 61M; the 400M valuation would mean that this stock is undervalued and should be around the $5 mark.
Note
I would like to add that why the intellectual property valuation is significant:Let's say for instance, your friend wants to buy a Japanese Katana that you have in your possession. You tell your friend that it's worth $10,000. At this point, would it be reasonable for him to simply write you a check for 10k? no. What happens next: you take the katana to an expert to have it appraised. The expert gives you a quote; and your friend uses that quote to make a decision.
It's the same process for selling a house, a car, anything.
GEVO is trying to garner social proof of what their company is possibly worth-- in order to (possibly) sell it.
Note
GEVO is getting hit with block trades (dark pool). So no matter how much selling, there are insiders or whomever absorbing it.Trade active
GEVO has a history of going from $3 to $24 Considering the mania of recent low float stocks, it is possible that GEVO goes back up to the $20 area.
Make sure to sell.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.