Amyris, Inc. (NASDAQ:AMRS)

CAPS Rating: 2 out of 5


Player Avatar handyman77 (91.04) Submitted: 1/11/2011 10:48:13 AM : Outperform Start Price: $22.03 AMRS Score: -102.61

Amysis is a renewable products company that is applying its industrial synthetic biology platform to be used for speciality chemicals and transportation fuels. Speciality chemicals includes industrial lubricants, cleaning products, plastic additives, polymers, cosmetics, flavors, fragrances, and renewable diesel. They are currently working with the biggest sugar and ethanol producer in Brazil and they have signed a deal to add a "bolt on" plant that will use Amysis technology. The biology platform allows the company many revenue streams, not just transportation liquid fuel. They are one of the leaders in a new field that has the potential to help transition us from a fossil fuel based world to something more sustainable. Some of there partners include P&G, Gruppo M&G, Shell, Biomin Brazil, Total Gas & Power, US government, Khosla Ventures, Khleiner Perkins Caufiled & Byers.

Since inception they have recognized $114 million in revenue and an accumulated deficit of $176 million, not so good. Ending September 30th 2010, they have had $50.5 million in revenue, $42 million from product sales (83% of revenue), $1.8 from collaborative partners (4% of revenue), and $6.7 from government grants (13% of revenue.) They are one of the few companies in this new field producing sales from its products.

They are an R&D discovery company, similar to a specialty drug company trying to bring a new drug on the market, lots of money being spent on R&D with hopes of a bigger payoff. At the end of the day they are losing money from operations but they are in a new industry, they are the leader, they have some deep pocketed partners that have done their own due diligence and are satisfied enough to plunk some money down, and they continue to make the rights steps towards profitability.

Member Avatar ta2122 (32.35) Submitted: 2/11/2012 1:10:34 AM
Recs: 0

Nobody cares who they partner with. Nobody cares about the R&D. Nobody cares about gov't grants. Nobody cares about industrial synthetic biology platforms.

I can tell you missed the most important part.

They have had 4 straight years of negative earnings. Companies that can't make money are not companies therefore go extinct.

2008 - (42M)
2009 - (64M)
2010 - (124M)
2011 - (145M)

By the way, the parenthesis are a bad thing. Forget the products and look at the financials. Even if this company made the iPhone they would still fail. Poor management = poor earnings = poor stock performance. It's simple.


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