Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

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<div><ul><li>The SAF market opportunity is vast and underserved. The US consumes 20-25 billion gallons of jet fuel annually, growing ~10% over the next decade as most fossil fuel markets plateau, yet SAF production today is negligible.</li><li>With 15 billion gallons of domestic ethanol production from abundant corn crops, Frey characterized Gevo’s mission as connecting that supply to enormous unmet aviation fuel demand.</li><li>A layered revenue model drives margins far above the commodity ethanol baseline. </li></ul></div>

The SAF market opportunity is vast and underserved. The US consumes 20-25 billion gallons of jet fuel annually, growing ~10% over the next decade as most fossil fuel markets plateau, yet SAF production today is negligible.With 15 billion gallons of domestic ethanol production from abundant corn crops, Frey characterized Gevo’s mission as connecting that supply to enormous unmet aviation fuel demand.A layered revenue model drives margins far above the commodity ethanol baseline. 

GEVO: WTR Insights Conference Takeaways - Selling Carbon Removal, Not Just Gallons of Ethanol