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Biofuel stocks heating up on United |
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Released on Tuesday, November 8, 2011, 9:00 PM ET
Pittsburgh, PA (SpeculatingStocks) - It was announced on Monday that United Airlines officially entered the biofuel age. United launched their first U.S. commercial flight that was partly powered by algae-based jet fuel.
The fuel blend was advanced biofuel and traditional petroleum-derived jet fuel. Even though some speculated that this was a publicity stunt by United Airlines, biofuel stocks are still seeing significantly increased attention.
We have found some biofuel stocks that have caught our eye:
AMRS (Amyris, Inc.) – AMRS uses its industrial synthetic biology platform to convert plant sugars into a variety of hydrocarbon molecules. Their platform is used to create renewable diesel and jet fuel. This is a play on the news, but it is struggling at around its 52-week low. Investors and traders should most likely wait for this one to show signs of a reversal before thinking about investing. The company has $186.97 million in cash, cash equivalents and short-term investments and long-term debt of $11.98 million.
SZYM (Solazyme, Inc.) –SZYM is a direct play on the United Airlines biofuel news. The company’s Solajet™ microbially-derived biofuel was the jet fuel that powered the actual United Airlines flight. The company announced that the plane was fueled with 40 percent Solajet™ and 60 percent petroleum-derived jet fuel. SZYM is ramping up production capacity to produce 500,000 MT of renewable oil by 2015 and they also signed a Letter of Intent with United to supply up to 20 million gallons per year (approximately 70,000 MT) of renewable jet fuel starting in 2014. SZYM has popped huge, but still has significant room to move higher. SZYM is trading at $10.82 and has a 52-week high of $27.47. SZYM is clearly becoming a leader in marketing biofuel.
GEVO (Gevo, Inc.) - Gevo is converting existing ethanol plants into biorefineries to make renewable building block products for the chemical and fuel industries. The company plans to move toward full scale commercialization of their renewable isobutanol. GEVO popped higher, but is still in its trading range and could move higher soon again. As of June 30th, 2011, GEVO had cash and cash equivalents of $106.54 million on its balance sheet and long-term debt of $17.84 million.
CDXS (Codexis, Inc.) – CDXS has been in a decent uptrend lately since early October, moving from a low of under $4.00 to over $5.00 now. The company recently reported revenues of $33.3 million for the third quarter, an increase of 23% from the third quarter in 2010. Codexis is an industrial biotechnology company producing high value sustainable chemicals, clean fuels, cost effective pharmaceutical processes and renewable bioindustrial ingredients to make industry more efficient, productive and profitable.
KIOR (KiOR, Inc.) – KIOR has spiked quite a few times since its IPO in June. KiOR is a next-generation renewable fuels company that has developed a proprietary technology platform to convert biomass into renewable crude oil.
Overall, biofuel stocks have been in a downtrend, but they may now awaken and a rising tide could raise most of the stocks in the sector.
Overall, biofuel stocks have been in a downtrend, but they may now awaken and a rising tide could raise most of the stocks in the sector.
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