NEW YORK (TheStreet) -- Gevo Inc. (GEVO) is popping on Thursday on the announcement ethanol producer Porta Hnos S.A. had signed a letter of intent to become the exclusive licensee of Gevo's GIFT(R) technology in Argentina. Gevo is a commercial producer of renewable fuel-source isobutanol.
By midday, Gevo shares had added 6.7% to $1.43.
"Isobutanol's versatility and hydrocarbon-like properties make it an ideal renewable fuel and chemical for Argentina and Gevo's GIFT(R) technology is the most efficient way to produce it," said Porta vice president Fernando Porta in a statement. "Porta is already a leading ethanol producer in Argentina and we would like to expand our footprint to other high-value renewable alcohols such as isobutanol."
"Commercial licenses demonstrate the value of Gevo's GIFT(R) technology to the market place and enables a low-capital route to building out renewable isobutanol capacity globally," added Gevo CEO Patrick Gruber.
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TheStreet Ratings team rates GEVO INC as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate GEVO INC (GEVO) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."