Top 5 Stock Picks of Adam Usdan’s Trellus Management

2. Vertex Energy Inc (NASDAQ:VTNR)

Trellus Management’s Stake Value: $11.665 million

Percentage of Trellus Management’s 13F Portfolio: 8.49%

Number of Hedge Fund Holders: 13

Headquartered in Houston, Texas, Vertex Energy Inc (NASDAQ: VTNR) is an environmental sciences company. It recycles industrial waste such as petroleum products and converts them into specialty products for further commercial use. 

On November 9,  Vertex Energy Inc (NASDAQ: VTNR) announced its earnings for the third quarter of 2021. The Q3 2021 revenue was $28.97 million, which showed year-over-year growth of 78.3%. Similarly, the EPS of Q3 2021 was $0.11, which beat estimates by $0.07. 

On November 10, Eric Stine, an analyst at Craig-Hallum Capital Group LLC, lowered the price target on Vertex Energy Inc (NASDAQ: VTNR) from $25 to $18, yet kept a “Buy” rating on the company’s shares to reflect the company’s recently announced earnings. 

Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Value Fund” Q2 2021 investor letter in which the investment company shares its stance about Vertex Energy Inc (NASDAQ: VTNR). Here is what the firm said about Vertex Energy Inc (NASDAQ: VTNR):

“The top contributor to Fund performance for the second quarter was Vertex Energy, Inc. (VTNR), a middle-market consolidator, refiner and rerefiner of distressed petroleum products such as used oil, transmix and off-specification commercial chemical products. The stock soared after the company agreed to purchase an Alabama refinery from Royal Dutch Shell for $75 million. According to comments by CEO Benjamin Cowart in the deal announcement, this was the “largest, most significant transaction ever completed by Vertex, one that positions us to become a leading regional supplier of both renewable and conventional products.” After another $85 million in investments to convert the hydrocracking unit to produce renewable diesel, Mr. Cowart believes the Alabama refinery could generate $3 billion in revenue and $400 million in gross profit as soon as 2023. While we admire Mr. Cowart’s optimism, we think the stock price has gotten ahead of company fundamentals—partially due to overexuberance regarding “green energy”—and we sold our position in Vertex.”