Aemetis (AMTX) has yet to dip into our previously stated buy zone, but shares have shown enough stability from this week’s early market-wide wobble that we’re going to recommend using today’s early weakness to buy a full-sized position for the Real Money Portfolio. Buy AMTX
To briefly recap our case for Aemetis (featured in the August 18 issue of Greentech Advisor). It’s a California ethanol producer that is adding renewable natural gas (RNG) by capturing methane from nearby dairy farms. It’s also developing sustainable aviation fuel production. That can rise from an industry measured in millions of gallons annually to billions of gallons by decade’s end, if federal plans announced two weeks ago come to fruition. The company also has the ability to perform carbon sequestration at its ethanol facility.
Technically, AMTX is holding over support, with a bullish Golden Cross set-up. Right above shares, 15 is resistance, which suggests if broken shares have a near-term path to 21. The company is trading at 2.4 times current-year revenue right now, and energy as a sector is leading the broad market in the short term and appears to have turned out of its bearish trend, based on momentum and relative strength indicators.
Our regular weekly update of SX Greentech Advisor is out next Wednesday, September 29. Please let me know if you have any questions or comments. You can reach me at brendan@cabot.net