Gevo (NASDAQ: GEVO) stock was down by 20% in the past month. The $10 seems to be its resistance level, and it is now $6.65 per share. So, is there a buying opportunity for the stock now?
The company is building a huge green plant in South Dakota to make fuels from non-carbon sources, but the plant will be online in 2022 and begin to generate cash then. That is still a long wait for its stockholders.
The company had $3.8 million in revenue in Q1 2020, but the number was only $0.1 million for Q1 2021. It had a net loss of $10.1 million for the quarter, compared with a net loss of $9.3 million in Q1 2020. These numbers compare to its current market capitalization of $1.32 billion, its stock price appears to be overvalued. That also implies that the stock might continue to run below $10 in a long period of time.
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