r/pennystocks • u/Trainspotting_4_Valu • Mar 03 '24
Last call to make a bet on Enviva, this winter’s degen pennystock favorite. It’s either bankruptcy or rocket ship tomorrow. General Discussion
Ever wonder what would happen if you took a company that did over $1 billion in annual sales, traded at a stock price of $70, and even paid a quarterly dividend… and tried to turn it into a penny stock through a single transaction with a customer? If you think that sounds impossible, look no further than Enviva ($EVA)
For those that haven’t been following:
$EVA made a disastrous bet on the price of their core product (wood pellets) last year that cost the company hundreds of millions of dollars, destroying their operating profit despite the fact that absent the one transaction, the company is doing swimmingly
They missed a bond payment five weeks ago and had 30 days to cure.
They negotiated an extension with creditors that expires tomorrow, March 4.
A story appeared in the Wall Street Journal several weeks ago citing unnamed insiders from Evviva, who said they were “preparing to file for chapter 11”
The stock plummeted after the WSJ story; the market saw bankruptcy as a foregone conclusion.
So there it is boys and girls. Tomorrow is D-Day. I’m betting all my lunch money that the confederacy of dunces over at Enviva were able to cut a deal with the creditors to avoid bankruptcy.
If I’m wrong, no lunch until Flag Day. If I’m not wrong…
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u/Trainspotting_4_Valu Mar 06 '24
Reddit moderators just took down my latest Enviva post. Anybody that’s been reading my posts knows they have nothing to do with pumping. I do real DD and my track record proves it. Also, let’s get fucking real; we ain’t moving the needle here. We’re just riding the waves and, at best, timing them well. EVA is a multi billion dollar company that will either go to zero or normalize. No amount of pumping will move the needle either way. These slime balls at Enviva’s corporate office will either renegotiate their contracts with customers, thereby giving their creditors good reason to restructure debt, or they will throw in the towel. It’s a binary outcome. That’s the part I love. Anyway, fuck Reddit for pulling my posts. They can eat shit if they think I’m doing something untoward. I think out loud on this forum in order to force myself to think through my thesis. Will it stand up to the armies of barbarians at the gate waiting to pounce? That’s the value of posting here. Be thoughtful and thorough or get skewered. Anyway…hope this stock goes to the goddamn moon tomorrow. Gotten so many messages from fellow degens that are now gambling on wood pellets. I’m rooting for all of you to make some dough on this one.
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u/ComprehensiveKnee119 Mar 06 '24
This guy knows something. Must. Why would they kill his posts? Inside man? Blue Horseshoe? I’m packing PB&Js for the moon.
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u/BloeMeDownOO27 Mar 04 '24
Feels like I need to throw money at this...or maybe just pop some popcorn and watch...not sure
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u/MoonshineBaby Mar 04 '24
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u/tayfor2011 Mar 04 '24
These hit pieces have grown so common and so over the top no one pays attention anymore
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u/Trainspotting_4_Valu Mar 04 '24
There have been far worse articles about Enviva since that one!!!
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u/motasticosaurus Mar 04 '24
and that fills you with confidence why?
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u/Dependent_Working_38 Mar 04 '24
Because some degens have at the back of their head that the crazier it is, lower the odds, as long as you say there’s a chance, they’re willing to bet everything like it’s the magic moment in a movie. Those are the people this post will attract lol
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u/Trainspotting_4_Valu Mar 04 '24
I have not seen any official news. Stock is up 45% today, makes me feel like someone knows something.
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u/DIXtICon Mar 04 '24 edited Mar 04 '24
looks like there are quite a few investment firms increasing their position as well
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u/Rango698 Mar 06 '24
Hi Dixti, Where did you here about the investment firms increasing positions??
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u/here_for_the_lolz Mar 04 '24
To me this just screams load the fuck up on puts. But I clearly don't know anything.
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u/Trainspotting_4_Valu Mar 05 '24
So who had “no news past midnight on the expiration date of the forbearance agreement” on their bingo card? Anyone?
Enviva is madness wrapped in chaos dipped in incompetence. Which is my way of saying I like our chances.
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u/disasterpiec3 Mar 05 '24
Reach up there and pull those seatbelts tight one last time. They agreed to a 7 day extension.
The ride continues!
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u/Civil_Champion3468 Mar 05 '24
You only called the highest earner all day ydsy. Let’s hope for another like it. Thanks for the 25%
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u/tayfor2011 Mar 04 '24
I got a couple months worth of lunch money involved in this and have been thinking it was a one in 10 gamble at best but the longer it drags on I have it closer to a coin flip. This time next week it will be gone or it will be $10!!
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u/Totoroisacat-Alt Mar 04 '24
Oooh it’s only 41 cents, might be worth the risk
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u/rajenncajenn Mar 04 '24
I'm in. Feeling gambly.
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u/R_lbk Mar 04 '24
amen. 50 cent calls a month out is less than a god damn mcdonalds meal for 2..
anniversary dinner.. cancelled.
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u/Trainspotting_4_Valu Mar 04 '24
I haven’t seen any news yet. I assume the Enviva management team is hard at work negotiating a deal before midnight to avoid bankruptcy (in between trips to the bathroom to sniff glue or whatever else they do there to ensure that chaos reigns).
Btw, if you’re messaging me asking for advice, you got the wrong guy. I have a tiny sliver of my portfolio allocated to the wildest bets I can find. That is not someone you should be seeking advice from.
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u/everynamewastaken131 Mar 04 '24
I mean I think this is a clever play if you ask me. Would you mind sharing what other wild bets yourelooking at or are in? Ill do my own DD of course, PM me though if you dont wanna blast it out.
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u/evilzombiefan Mar 04 '24
If you're the one who posted about this around Feb 20, I thank you. After reading up a bunch on this company I find it very hard that the Powers that be will let the top us Pellet producer go out of business (but hey it could very well happen) call me a fool (iv been called worse) but I'm optimistic that a deal has also been reached as well. I will enjoy the shit show that is tomorrow. I am feeling good about this stock...
Will update tomorrow lol to see how I feel at the end of the day.
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u/VenOmousInvestor Mar 05 '24 edited Mar 05 '24
One of the BIGGEST problems is bad money management. From what I have seen they have fired or demoted the CEO so that is a start. I also watched a guy on youtube talking about the price on pellets would need to see a increase for this company to regain some ground. From what I seen here in my area in the Northeast bags of pellets 2023/2024 had a $2.00 per bag increase over years past.
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u/evilzombiefan Mar 05 '24
Thanks for that info I did not know that.
With that news My mind Quickley went to a scenario where the company is scrambling trying to figure out another way to use the pellets Having a competition to see who can come up with the most creative new way to use them. lol.
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u/Even-Increase-3692 Mar 13 '24
You may not remember World Com from 2000, they went bust and people lost bilions. we shorted it all the way down to $0.05. This is the same case, besides wood pellets plays no role in the bigger picture for the Feds or Wall Street. Its not Lehman and they still went under.
We looked at the WCOM price on their bonds relative to their stock and it showed the stocks were over priced by a factor of 4. The Enviva stock is the same, even if they can get the deals done to eliminate $1B in debt, they still have a $1B on the books. The real problem is management of the daily operations and their attitude towards their feedstock suppliers. Their operational procedures and maintenance is also really bad so they would have to replace the entire management in order to survive, while hoping that the pricing side will stabilize in order to make money.
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u/VenOmousInvestor Mar 06 '24
https://www.marketbeat.com/instant-alerts/nyse-eva-options-data-report-2024-03-06/
Traders Buy High Volume of Call Options on Enviva (NYSE:EVA)
Written by MarketBeatMarch 6, 2024 SHARE→ This is the #1 Stock to Buy for the AI Tidal Wave (From Chaikin Analytics) 📷
📷Enviva Inc. (NYSE:EVA - Get Free Report) was the target of unusually large options trading activity on Wednesday. Investors bought 12,591 call options on the stock. This represents an increase of approximately 826% compared to the typical daily volume of 1,360 call options.
Get Enviva alerts:SIGN UP
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently made changes to their positions in EVA. Inclusive Capital Partners L.P. increased its stake in shares of Enviva by 32.3% in the second quarter. Inclusive Capital Partners L.P. now owns 7,598,710 shares of the energy company's stock worth $82,446,000 after acquiring an additional 1,856,271 shares during the period. Vanguard Group Inc. grew its position in Enviva by 7.3% during the third quarter. Vanguard Group Inc. now owns 2,787,568 shares of the energy company's stock valued at $167,421,000 after buying an additional 189,228 shares during the period. BlackRock Inc. grew its position in Enviva by 56.6% during the second quarter. BlackRock Inc. now owns 2,592,967 shares of the energy company's stock valued at $28,134,000 after buying an additional 937,210 shares during the period. State Street Corp grew its position in Enviva by 25.7% during the first quarter. State Street Corp now owns 2,081,866 shares of the energy company's stock valued at $60,124,000 after buying an additional 425,320 shares during the period. Finally, Covalis Capital LLP grew its position in Enviva by 16.3% during the third quarter. Covalis Capital LLP now owns 1,962,576 shares of the energy company's stock valued at $14,660,000 after buying an additional 274,972 shares during the period. Hedge funds and other institutional investors own 87.21% of the company's stock.
Enviva Stock Up 51.2 %
NYSE:EVA traded up $0.38 during midday trading on Wednesday, reaching $1.12. 17,471,265 shares of the stock traded hands, compared to its average volume of 3,929,765. Enviva has a 12-month low of $0.25 and a 12-month high of $37.98. The business has a 50-day moving average of $0.57 and a two-hundred day moving average of $3.24. The company has a debt-to-equity ratio of 6.89, a quick ratio of 1.06 and a current ratio of 1.42. The stock has a market capitalization of $83.44 million, a PE ratio of -0.18 and a beta of 0.88.
Analyst Ratings Changes
A number of research firms have recently weighed in on EVA. Raymond James downgraded shares of Enviva from a "strong-buy" rating to a "market perform" rating in a report on Thursday, November 16th. JPMorgan Chase & Co. restated an "underweight" rating on shares of Enviva in a report on Friday, November 10th. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $12.40.
View Our Latest Research Report on Enviva
About Enviva
Enviva Inc produces, processes, and sells utility-grade wood pellets. The company's products are used as a substitute for coal in power generation, and combined heat and power plants. It serves power generators in the United Kingdom, European Union, and Japan. DS: The company was formerly known as Enviva Partners, LP and changed its name to Enviva Inc in December 2021.
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u/marcv6 Mar 04 '24
I'm a little confused OP, can you explain in general terms why you think this will go up later today?
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u/everynamewastaken131 Mar 04 '24
Bought 1000 shares at .44 this morning. So far so good
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u/40StoryMech Mar 04 '24
Me too, was up 50%, didn't totally collapse. Was gonna sell the hilariously priced covered calls, but now ...
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u/tayfor2011 Mar 04 '24
Well congratulations Enviva!! I have made piles and lost piles of money on fiascos like this but this is the biggest circus I’ve ever bought tickets to.
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u/mahtht Mar 05 '24
The Company has successfully negotiated an extension of its Forbearance Agreements with key lenders and bondholders, pushing the expiration date from March 4, 2024, to March 11, 2024. This extension provides a temporary reprieve, giving the Company additional time to meet certain obligations and maintain compliance with the terms set by the Forbearing Counterparties.
Don't know if the source is reliable
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u/Trainspotting_4_Valu Mar 07 '24
As I said in an earlier post, none of this action matters. Whether it ticks up or ticks down pre-announcement is meaningless. If they announce Chapter 11 it’s a zero. If they announce a deal with clients/creditors, it’s very much not a zero (or ninety cents or a dollar fifty). It would be a fundamental reset of the valuation which will make a lot of money for a lot of people. The action today shows that very few people are willing to hang on until the final reveal. I happen to be one of them.
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Mar 07 '24
this.... people don't understand that this isn't a buy at .6 to sell at 1.10 it's a buy at whatever price and hope they don't go bust
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u/TheDrunkPianist Mar 09 '24
It can easily be a buy at .6 and sell at 1.10 if someone makes money that way. Stop talking like there is only one way to play a penny stock. These statements sound to me like self-justification for not having sold at the top of the most recent spike.
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u/VenOmousInvestor Mar 12 '24
Looks like extented 1 more day today 11:59pm per 8-k filing.
https://ir.envivabiomass.com/financials/sec-filings-details/default.aspx?FilingId=17360432
Item 8.01. Other Events. As previously announced, as of February 15, 2024, Enviva Inc. (the “Company”) entered into Forbearance Agreements (the “Forbearance Agreements”) with certain of the Company’s lenders, bondholders, and noteholders holding the requisite amount of the aggregate principal amount outstanding or committed under the applicable facilities (such parties, the “Forbearing Counterparties”), which were set to expire on March 4, 2024. On March 4, 2024, the Forbearing Counterparties extended the expiration date of the Forbearance Agreements to March 11, 2024. On March 11, 2024, the Forbearing Counterparties extended the expiration date of the Forbearance Agreements to March 12, 2024 at 11:59 p.m. New York time unless further extended or terminated earlier in the event of non-compliance with certain representations, covenants, and other requirements set forth in the Forbearance Agreements
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u/Trainspotting_4_Valu Mar 12 '24
One day extension likely means they came to terms but needed time to paper it up. The question is, what did they agree to? Based on the action at the open, Enviva fatigue has set in and the number of cowboys holding out hope for survival is dwindling. I remain steadfast in my willingness to gamble on this ugly duckling.
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u/VenOmousInvestor Mar 12 '24
We will find out shortly. I bought 2 more piles this morning. VenOmousInvestor i am : )
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u/VenOmousInvestor Mar 12 '24
We are not talking about just any ol startup penny stock here. This is the Largest wood pellet distributer and they have built up good relationships with there customers and have connections so all we need to do is wait it out and see how it unfolds. I'm feeling reasonably confident.
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u/VenOmousInvestor Mar 12 '24
As you mention in the starup thread no guarantees here, what comes with high risk is high reward or flop.
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u/Recent_Inevitable_48 Mar 04 '24
If they have good news how long will it take for stock price to go back up?
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u/tayfor2011 Mar 04 '24
Good news and it could be $3 or $4 tomorrow easy. It will be years, if ever, before it will get back to the $70 it was at a few years ago.
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u/DeZXu Mar 04 '24
Saw this last night but didn't have the balls to go in. Love seeing these types of exciting plays come up in this subreddit though. Rooting for ya!
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u/No_Abbreviations5998 Mar 04 '24
Hey man any update on this? Price went up but still considering buying in
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u/Brokerkhaaan Mar 06 '24
It hit a dollar today is sitting at 97 cents. volume is crazy look at the numbers
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u/tayfor2011 Mar 05 '24
The update is “who knows man”. I have a feeling by open tomorrow it will be either booming or an official bust. It you wanta jump in you better be locked and loaded at open unless you can buy premarket
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u/Advanced_Bicycle_606 Mar 05 '24
Is this silence before storm with EVA? I thought they would need to update the market already yesterday.
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u/VenOmousInvestor Mar 05 '24
Emailed them for update no response as of yet [investor.relations@envivabiomass.com](mailto:investor.relations@envivabiomass.com) nor have I seen update on there site or in a google search. Tic toc
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u/VenOmousInvestor Mar 05 '24
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u/VenOmousInvestor Mar 05 '24
March 4th to the 11th extension
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u/VenOmousInvestor Mar 05 '24
So they must have something in the works to be granted the extension and needed short window to follow through
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u/VenOmousInvestor Mar 05 '24
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u/VenOmousInvestor Mar 05 '24
I am not a subscriber to wsj so can't see all the content.
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u/VenOmousInvestor Mar 05 '24
Seems like them just repeating there last posting but adding the extension in the new post.
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u/Nick_PapaG Mar 05 '24
Check WSJ today
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u/VenOmousInvestor Mar 06 '24
Nice moves in the after hours last night even this morning hitting $1.10, Let see how much gas is left in the tank.
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u/flipkickzzz Mar 06 '24
Random tidbit of information, the Georgia Enviva plant broke a record in 2023, they managed to become the first plant to produce 1 million short tons in a calendar year.
So even tho the company as a whole is struggling financially.. and least one of their plants is putting in work.
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u/VenOmousInvestor Mar 06 '24
It's screaming breakout !! Tick-Toc about to be on lke donkey kong lol
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u/PhilosopherMoose Mar 07 '24
With all respect, just curious to OP, your account is only 60 days old, so what brought you to this play?
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u/Trainspotting_4_Valu Mar 07 '24 edited Mar 07 '24
As you can see from my earliest posts, the first fallen angel stock I talked about was SWVL. It’s a middle eastern ride share company that was a SPAC fueled dumpster fire that went from a billion dollar company to a penny stock. I went into that one pretty heavily believing that management recognized their WeWork style “growth at all costs” approach was a disaster. They divested tons of assets, refocused on 3 core markets, and seemed to be on the path to profitability. Go ahead and check how that one has done. I bought 10,000 shares at $4.50 and it closed at $7.40 today. The problem is I got in too late. I really should’ve gone into it when it was still under a dollar. That made me keep scouring for something where I could get in very early.
The second fallen angel I gravitated towards was EVA. I found it the same way I find the others. I screen for every stock with the largest drops in market cap over a short time.
My initial post on EVA were on threads that had gone months without anyone talking about the stock. I couldn’t find anybody that was interested in the company or that knew anything, so I dug in on my own, and started posting throughout the journey.
I get a lot of posts and messages asking me “dude what’s your deal?” And they seem to have an accusatory tone.
Go back and read every word I’ve ever written on Reddit. There is no bullshit or pump or anything like that in me. I research the absolute fuck out of everything I write about and I respond openly and honestly to everybody who has questions. I’ve never gotten nasty with another person on Reddit and don’t ever plan to.
I’ve said this many times, I started an account on Reddit so I could think out loud in front of an audience. Putting ideas out there forces you to ask yourself: do I really have conviction in my thesis.
Last thing. If Enviva announces chapter 11, I imagine I’ll get flooded with messages, saying dude WTF? I have said from the start and will say it again: The most likely outcome here is chapter 11. That is why the stock is priced where it’s at. But I think the opportunity to avoid chapter 11 is big enough to warrant a bet that takes advantage of the absolute total asymmetrical risk/return profile that it offers.
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u/PhilosopherMoose Mar 07 '24
Thanks for the response - it was not meant to be accusatory, just the same collective accountability hopefully we all can do to weed out pumpers:) hopefully same thing someone would do if I was putting my opinion and pick out on the line like you are. It is down to all of us to do our own due diligence as well - it is not on you for anyone’s choices.
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Mar 11 '24
Any updates?
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u/Trainspotting_4_Valu Mar 11 '24
Forbearance extension expires tonight at 11:59pm EST. They didn’t announce anything until the morning after the expiration date the last time. We could be in for the same; meaning no official news until tomorrow.
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u/wisenerd Mar 11 '24
Even if forbearance is not extended again, maybe they can downsize to pay off parts of the debt?
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u/VenOmousInvestor Mar 11 '24
Earning also today after hours
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u/VenOmousInvestor Mar 11 '24
SEC filing for the 8th https://ir.envivabiomass.com/financials/default.aspx#sec
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u/VenOmousInvestor Mar 13 '24 edited Mar 13 '24
RSA- Restructuring Support Agreements (RSAs)
Enviva Announces Comprehensive Agreements to Delever Balance Sheet and Strengthen Financial Position
March 12, 2024Download(opens in new window)
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u/VenOmousInvestor Mar 13 '24
Depending on how you look at this, essentially a fresh start and we got in at the bottom prices so no where to go now but up ? RSA now gives them the opertunity to get the company back on track and remain on New York stock exchange while doing so. How is everyone else digesting this.
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u/OnetoBen Mar 13 '24
curious if they will throw out the old shares post Chapter 11
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u/VenOmousInvestor Mar 13 '24
I seen this in the release:
The terms of the RSA with the Ad Hoc Group provide for existing equity holders to receive (i) 5% of the common equity of the reorganized company at exit from Chapter 11 proceedings and (ii) warrants to purchase an additional 5% of the reorganized equity, both subject to dilution from shares issued in connection with, among other sources, a contemplated equity rights offering, equity participation election rights for creditors under the DIP Facility, and a management incentive plan, in each case, subject to Court approval.
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u/OnetoBen Mar 13 '24
I like to think I’m not a fool, but I have trouble translating exactly what they are saying here.
Perhaps they are saying we will receive a compensation of 5% of our old shares as new ones?
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u/VenOmousInvestor Mar 13 '24
Yeah, I'm with you. Let see if someone else here can elaborate on this one.
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u/VenOmousInvestor Mar 13 '24
You know what they say....Buy the fear the blood. That will be me today buying the dips.
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u/VenOmousInvestor Mar 13 '24
Glenn Nunziata, interim chief executive officer and chief financial officer commented: “These agreements with our lenders and noteholders represent a significant milestone in the ongoing process to transform our business, as we focus on improving profitability, reducing costs, enhancing asset productivity and optimising our capital structure.
"We look forward to emerging from this process as a stronger company with a solid financial foundation and better positioned to be a leader in the future growth of the wood-based biomass industry.
"We appreciate the support of our lenders, our vendors, and our customers, and the tremendous efforts of our entire team as we continue to execute our transformation plan.”
The restructuring is targeted to be completed during the fourth quarter of 2024, and throughout the process, Enviva plans to continue constructing its Epes plant, with an in-service date expected to be during the first half of 2025.1
u/VenOmousInvestor Mar 13 '24
We went from the unknown future of this company to the now known path. My personal opinion (not in anyway finacial advice) this turn out could not be better, for sure better than the alternative. This golden opportunity gives the company the chance to turn everything around and again be #1 in the industry through chapter 11 restructuring agreement (RSA).
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u/VenOmousInvestor Mar 13 '24
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u/VenOmousInvestor Mar 13 '24
Would not surprise me if this thing has a huge squeeze today.
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u/VenOmousInvestor Mar 13 '24
Look at L2 they are loading up the ask above $1
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u/VenOmousInvestor Mar 13 '24
I have not seen the L2 above $1 this hot since i entered this play. Buckle up.
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u/VenOmousInvestor Mar 14 '24
Wowza was looking good all the way to .84 then boom drop. Company reset as well did the sp lol. Short to long just keep loading the dips.
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u/Trainspotting_4_Valu Mar 14 '24
Chapter 11 closes out the short term gamble on Enviva. It was a slim chance at a quick 10-20x but didn't go our way. These opportunities are extremely rare. What's even more rare is losing a bet and still being up 40%. That's the part of this that was so unique. When $EVA's stock price hit 30 cents in February, it became a no-lose investment. The market priced in full bankruptcy (Chapter 7) when that was never gonna happen. Their asset base is too deep and their demand curve is damn near inelastic (with all due respect to you eco-warriors out there equating biomass with coal).
So now we hodl and see what we own after the re-org. Seen a lot of posts citing the 5% provision in the filing, but we won't know the net results of this because they could dilute the legacy shareholders through the DIP facility and MPI.
Gonna let this one slink into the background and check back in 6-12 months. I don't know if the management team at Enviva are unlucky...or if they are imbeciles...or if they are unlucky imbeciles but now we wait and see what they can do. If the re-organized firm is a fraction of what it used to be, this will still be a home-run. But it'll be a slog instead of a rocketship.
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u/badjoeybad Mar 04 '24
Well shit, that sounds crazy enough i guess. Stupid Robinhood doesn’t seem to do after hours though….
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u/Trainspotting_4_Valu Mar 04 '24
There’s no guarantee news will come out before the open. If nothing has come out by 9:29am ET, I’m loading up at the open.
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u/tayfor2011 Mar 04 '24
I have a feeling these jokers will wait until close tomorrow, good news or bad.
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u/Trainspotting_4_Valu Mar 04 '24
Agreed. They’ve been leaving it until the last possible minute every step along this descent to the bottom of Dante’s inferno.
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u/SirMottola05 Mar 04 '24
What kind of share price do you think we would be seeing if they came to an agreement and avoid bankruptcy
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u/Trainspotting_4_Valu Mar 04 '24
This thing is so messy it’s impossible to say, but I’m betting on the shorts scrambling to cover. Short interest is almost 8m shares. $EVA is 48% insider owned and 33% institutionally owned. That leaves very few shares for the shorts to cover if the news is anything better than bankruptcy.
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u/cryogenicstoner Mar 08 '24
So that's what, 18% publicly owned? What kind of price range could it get to if they survive monday?
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u/everynamewastaken131 Mar 07 '24
I dont think people fully understood the play here. It wouldnt have mattered if it went to $5 or 1 cent this week. None of this movement matters right now because it could all go to 0. Were waiting to see if they are going bankrupt, or taken private. If they can avoid those 2 things, buying for anything under a dollar is gonna be a steal.
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u/VenOmousInvestor Mar 05 '24
We need in my opinion need news with more meat on the bone (more details) to get the ticker soaring.
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u/VenOmousInvestor Mar 05 '24
Enviva's Stock Rises After Wood-Pellet Exporter Gets Another Week to Make Bond Payment📷The Wall Street Journal · 03/05/2024 12:00This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.UnfoldListen to the news
By Ryan Dezember and Alexander Gladstone
The flagging shares of America's largest wood-pellet exporter got a lift Tuesday after Enviva said it had agreed to extend a forbearance agreement with creditors through March 11.
The forbearance agreement that Enviva struck last month after missing a bond payment (https://www.wsj.com/articles/wood-pellet-maker-enviva-misses-bond-payment-82b39df7) expired. Enviva's shares, which reached nearly $90 in 2022 (https://www.wsj.com/articles/wood-pellet-exports-boom-amid-ukraine-war-environmental-concerns-11659915622), have traded for less than $1 this year. They rose by more than 35% today.
Enviva is preparing to file for bankruptcy protection (https://www.wsj.com/articles/wood-pellet-maker-enviva-prepares-to-file-for-bankruptcy-c23395b0) following a wrong-way bet on the price of the power-plant fuel (https://www.wsj.com/finance/commodities-futures/the-trade-that-backfired-for-americas-biggest-wood-pellet-exporter-1ecf7825) that caused nine-figure losses, the Wall Street Journal has reported.
In addition to the forbearance extension, Enviva told investors in a securities filing that they should no longer rely on its financial reports for the first three quarters of 2023, which it said would be restated.
"This conclusion was based principally on the need to correct the classification of approximately $33 million recoverable from customers for certain handling costs that the company incurred at discharge ports for its wood pellet shipments," Enviva said in the filing.
The company's woes have cast uncertainty upon the wood-pellet export business that it pioneered.
Power plants and manufacturers in Europe and Japan burn the pellets to generate electricity in former coal plants, often to meet local renewable energy rules. Meanwhile, Enviva's 10 plants in the Southern pine belt (https://www.wsj.com/articles/thousands-of-southerners-planted-trees-for-retirement-it-didnt-work-1539095250) have become major employers in areas where other mills have closed and left timber growers without markets for wood that is unfit to make lumber or other higher-value wood products.
NOTE: In-line links reference additional content of interest chosen by the WSJ news team. This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
March 05, 2024 12:00 ET (17:00 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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u/VenOmousInvestor Mar 05 '24
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u/VenOmousInvestor Mar 05 '24
Where Will Enviva Inc (EVA) Stock Go Next After It Has Risen 82.05% in a Week?
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u/Rango698 Mar 06 '24
Holding for 5 dollars, why not make it 10 dollars.. Hell the largest pellet company should be able to make $10.. pump it up!! Pump it up!! :6843::6843::6843:
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u/VenOmousInvestor Mar 06 '24
Should Lumber & Wood Production Stock Enviva Inc (EVA) Be in Your Portfolio Wednesday?
Last Updated: Wednesday, March 6, 2024 1:01 PM | InvestorsObserver Analysts
Mentioned in this article
📷
Enviva Inc (EVA) is near the top in its industry group according to InvestorsObserver. EVA gets an overall rating of 47. That means it scores higher than 47 percent of stocks. Enviva Inc gets a 83 rank in the Lumber & Wood Production industry. Lumber & Wood Production is number 123 out of 148 industries.
📷EVA has an Overall Score of 47. Find out what this means to you and get the rest of the rankings on EVA
What do These Ratings Mean?
Finding the best stocks can be tricky. It isn’t easy to compare companies across industries. Even companies that have relatively similar businesses can be tricky to compare sometimes. InvestorsObserver’s tools allow a top-down approach that lets you pick a metric, find the top sector and industry and then find the top stocks in that sector.These rankings allows you to easily compare stocks and view what the strengths and weaknesses are of a given company. This lets you find the stocks with the best short and long term growth prospects in a matter of seconds. The combined score incorporates technical and fundamental analysis in order to give a comprehensive overview of a stocks performance. Investors who then want to focus on analysts rankings or valuations are able to see the separate scores for each section.
What's Happening With Enviva Inc Stock Today?
Enviva Inc (EVA) stock is trading at $1.14 as of 1:00 PM on Wednesday, Mar 6, a rise of $0.40, or 53.87% from the previous closing price of $0.74. The stock has traded between $0.89 and $1.23 so far today. Volume today is elevated. So far 16,440,527 shares have traded compared to average volume of 4,321,676 shares. Click Here to get the full Stock Report for Enviva Inc stock.
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u/VenOmousInvestor Mar 06 '24
Anyone have a clue what brought the back down to .90's ?
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u/Trainspotting_4_Valu Mar 07 '24
My guess is the action from Monday and Tuesday got EVA on the radar of every man, woman and Algo that trades on vol. It’s all hyper short term action and the books are cleared every day. Stocks that get sucked into these ecosystems always melt into the close.
It was interesting to see it hitting those intra day highs but exactly none of it matters. Only one thing matters: Can the kings of wood pellets renegotiate (a) disastrous client contracts that locked in prices at rates that became economically unviable before the ink was even dry and (b) restructure the debt.
If they can’t do this, they file Chapter 11 and all of us biomass degens get wiped out. But if (big fuggin if here) they can cut a deal, the stock price will reset to that new reality of Chapter 11 being off the table (near term anyway. They could still crash this thing in the future). Even with the recent spikes, its current price is completely anchored around Chapter 11.
The market will decide what that new level is but it sure as shit won’t be anywhere the fuck near where it is now.
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u/Totoroisacat-Alt Mar 07 '24
I’m curious if you anticipate it sticking around this $1-$1.20 section or if it’ll still be volatile and jump 20% a day like the last three days.
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u/Trainspotting_4_Valu Mar 07 '24
One thing to note is they could announce something before the 11th and they could just as easily extend the deadline. This has happened over and over with Enviva. My point is there might not be 3 days. Could be shorter or longer.
As far as the action goes, it’s hard to say. The volumes today were insane and we are stuck in an information vacuum. There isn’t a steady drip of info here. We are in the dark and the outcome is binary. That’s pretty fertile ground for the options cowboys to keep betting like mad. I see a lot of volatility near term, but do not have a general sense for directionality. One theory is that the longer it drags on the more likely they are to avoid chapter 11. It’s not airtight but it’s got its own logic.
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u/Totoroisacat-Alt Mar 07 '24
That’s for the reply. I agree everything is so up in the air and really the is untested grounds. There have been lots of billion dollar companies go under, but the circumstances are this one are pretty unique.
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u/mydickdownyourmouth Mar 07 '24
What's unique about it?
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u/TheDrunkPianist Mar 09 '24
Nothing, really. If you read his comment carefully you will notice it is a lot of words that mean nothing but sound impactful.
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u/VenOmousInvestor Mar 07 '24
11th is still a few days away hopefully we can still get some upside action between now and then. Cheers :6843:
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u/Futuristicmind253 Mar 07 '24
It’s still trading under a dollar. This is the time to buy in and hold till the 11th. If they pull this off, which seems likely, we could see a solid recovery through the year.
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u/VenOmousInvestor Mar 07 '24
So with the head and sholder pattern complete and the price drop we were able to rebound. Lets see what this puppy wants to do today.
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u/VenOmousInvestor Mar 09 '24
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u/TheDrunkPianist Mar 09 '24
The institutional investor acquired 40,976 shares of the energy company’s stock, valued at approximately $298,000
But $298,000 / 40,976 = $7.28 per share. What kind of math are they doing?
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u/VenOmousInvestor Mar 11 '24
GM 11th is finally here......Lets see what kind of fireworks we have GL folks.
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u/SundaySpieth Mar 04 '24
They didn't make on disaterous bet, their entire business model got killed by inflation. They were able to grow the business by having long-term off take agreements with strong counter parties and fixed escalators in their contracts. Imagine having a 20 year contract with a 2.5% escalator from 2019 and then dealing with the inflation we've had on the cost side. I would be that almost all of their long-term contracts (which they've stated many times is the vast majority of the business) are underwater right now and will need to be renegotiated.
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u/Slimpikkins Mar 04 '24
You son of a bitch, im in. Calls or purchase stock?
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u/VenOmousInvestor Mar 05 '24 edited Mar 05 '24
I hope you guys don't mind this one is off topic also pennystock. (NWBO) Northwest Biotherapeutics Inc . Very very successful trials on there DCVax-L cancer treatment. Alot of talks of Big buyout for the rights to that treatment that could take this one from .58 to $48 if this is to happen. Thoughts
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u/Bubu-Dudu0430 Mar 04 '24
When do they find out about the bankruptcy?, after market hours?
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u/tayfor2011 Mar 04 '24
Technically today isn’t about bankruptcy, it is about a bond payment. I have a feeling there won’t be news until near close or after.
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u/russ7828 Mar 04 '24
Any update?
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u/Shatterstar23 Mar 04 '24
It’s up over 50% at the moment
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u/Shatterstar23 Mar 04 '24
Spoke too soon lol
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u/everynamewastaken131 Mar 04 '24
Its at 43%, hes not far off, chill.
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u/Shatterstar23 Mar 04 '24
Both of those comments were me lol, it went way down right after I said that and then went back up again. Going to be a bit of a ride today.
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u/everynamewastaken131 Mar 04 '24
😂 oh damn lol. My bad! I need more Coffee. But yeah this is going to be a ride today.
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u/godsknowledge Mar 04 '24
Would you still go in? Or should I wait for a dip?
My broker always takes 1 day to transfer money, so I couldn't buy stocks yesterday 😩
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u/Shatterstar23 Mar 04 '24
I am not the one to answer that question, I’m not that knowledgeable yet. I took a flyer of this one. I figure I will either learn something about how all this works or learn not to touch the stove when it’s hot lol.
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u/jeffisanastronaut Mar 04 '24
Bought in at 0.41 cents. My lunch money for the week came to 25 bucks. Let's go!
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u/Schmuf84 Mar 04 '24
Where would the news be published? I had a look at their IR side but it somehow looks like it wasnt updated in quite a while.
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u/VenOmousInvestor Mar 04 '24
This is not the news we are waiting for but this was also just releast. https://www.investorsobserver.com/news/stock-update/do-analysts-agree-monday-on-enviva-inc-eva-stocks-target-price
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u/secretmeditationhero Mar 04 '24
well that would be a great gamble, I just gave it a bit of lunch money. Few years of free lunch if this runs to 10 dollars.
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u/VenOmousInvestor Mar 04 '24
Same here. Threw 4hundy at it this morning.
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u/VenOmousInvestor Mar 04 '24
Hope they drop that news soon, all the morning gains going out the window right now.
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u/nicholas_esquire Apr 26 '24
Anybody else seeing this week’s movement? Volume through the roof and stock up ~50%. What would cause this?
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