Bleecker Street Research short Gevo, says Trump could throw out DOE loan

In a recently published report, Bleecker Street Research says it is short Gevo (GEVO) shares and that it thinks stock will soon “give back the rest of their recent gains as shares are crushed by further dilution.” “On October 16, GEVO announced it secured a $1.46 billion conditional loan from the DOE. While the DOE made clear that this was a ‘conditional commitment,’ GEVO management has made representations that the loan is more likely to happen than it really is. We think regulations are clear: a conditional commitment is not binding if the DOE does not want to fund the loan. GEVO has said the loan would close no earlier than 2025, which means the Trump administration will be the one to fund or reject it. We believe a Trump DOE is much less likely to approve the loan, as the DOE’s multibillion-dollar loan program is known to be in Trump’s crosshairs. We believe that failure to close the loan would cause a funding crisis for GEVO, and would likely result in massive shareholder dilution. And even assuming the loan is still a go, the other conditions still likely crush GEVO’s equity,” the report reads.