NEW YORK (TheStreet) -- Shares of Gevo (GEVO) were gaining 5.8% to $3.92 Wednesday after the biofuels company announced that the National Marine Manufacturers Association (NMMA) endorsed the use of its renewable isobutanol in the marine fuel market.
Gevo said the NMMA supported the use of the renewable isobutanol as an "effective, less damaging, more suitable biofuel alternative than ethanol" for marina and recreational boat engines.
The company said studies of renewable isobutanol show it provides higher energy, prevents moisture absorption and phase separation, and reduces engine corrosion.
The NMMA said biobutanol fuel blends are safe and viable ethanol alternatives at mixes of up to 16.1% isobutanol by volume.
"We believe that the marine industry will be an important market for Gevo's isobutanol. The technical properties of isobutanol shine in this application," Gevo CEO Dr. Patrick Gruber said. "We appreciate the efforts and the collaboration between Gevo and the NMMA throughout the testing program."
TheStreet Ratings team rates GEVO INC as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GEVO INC (GEVO) a SELL. This is based on some significant below-par investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: