Analyst Note: Gevo, Inc. (NASDAQ:GEVO), Lumber Liquidators Holdings Inc (NYSE:LL)
Rodman & Renshaw Gevo, Inc.(NASDAQ:GEVO) Gevo announced its agreement with Musket Corporation, a national fuel distributor, to supply isobutanol for blending with gasoline intended for marine and off-road markets in Arizona, Nevada, and Utah. They view this agreement as a significant indication of market acceptance, and further validation of Gevo’s isobutanol as a gasoline blend. Co is ramping production. On June 7, 2016, the company announced successful completion of the first two commercial flights, by Alaska Airlines, using Gevo’s renewable alcohol-to-jet (ATJ) fuel. ATJ can be used as up to a 30% blending component in conventional jet fuel. They believe that the co is already in talks with other commercial airlines, and expect ATJ to gain acceptance as a jet fuel blend industry wide; $5 tgt.
Lumber Liquidators Holdings Inc(NYSE:LL) Wedbush notes the Consumer Products Safety Commission (CPSC) released its long-awaited findings in the investigation of LL Chinese laminate flooring, most importantly concluding that LL need not recall the products as they tested below remediation guideline levels. In their view, these findings should not be surprising, as they are largely based on the results of product testing completed and released by the Center for Disease Control (CDC) earlier this year. While removing this overhang is an incremental positive, and the business is showing signs of underlying improvement, significant risk still exists in outstanding litigation, most importantly the Multi District Litigation (MDL) class action products liability lawsuit, keeping them NEUTRAL on LL.
Tags: Gevo, Inc.(NASDAQ:GEVO), ll, Lumber Liquidators Holdings Inc (NYSE:LL)