Symyx Technologies, Inc. (SMMX)
A provider of research and development execution and innovation for the chemicals, energy, life science, consumer product and other industries.
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Overestimated Earnings Growth
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Beaten down
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I like the fact that they have little debt.
I like the low P/E.
But mostly, I'm interested in the fact that they are a technology company that is focussed on improving efficiency. They have a long way to go to prove that they can't make it. And at the current price, I would be more afraid of this stock if they didn't have the cash reserves.
That said, in the short term, I might get pummelled because I believe that the market is in a bear high for now. In the longer view, though, this is the sort of thing I like.
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bottom-rated on msn
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Shares of Symyx Technologies Inc. hit a four-year low after the company reported loss in the first quarter of 2007 and gave a disappointing second-quarter outlook. For the second quarter, Symyx expects a loss of 4 to 6 cents per share on $24 million to $26 million in revenue. It has also slashed its full-year outlook, expecting results to range between a loss of 4 cents per share and a 6-cent per share profit, down from a profit of 33 cents to 38 cents per share. The shares of the company have dropped by around 40% till date since the announcement of the results
Symyx Technologies makes high throughput research technologies and research software for its customers in the chemical, energy, pharmaceutical, electronics and other industries. In the recent quarter three chemical companies turned down offers to collaborate with Symyx and four pharmaceutical companies delayed licensing software which further created a negative impact. Moreover a large percentage of revenue for the company comes from two alliance customers which add-ons to the risk as even if either of them were to terminate their relationships with Symyx, it would have a material impact on earnings.
The company’s weak performance along with the weak guidance provided by the management is expected to hit the stock negatively. Backing on the same, it is expected that the company’s stock will see a declining trend for coming months and will disappoint the shareholders.
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Products
management
industry position
intellectual property
very volatile especially because the small size
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Don't understand why invstors don't like this stock. Had been eyeing for quite some time, think now is the time to buy and keep. A tech leader.
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Bad looking chart.
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The company uses sophisticated models to help improve products for larger chemical and advanced material companies. For example, Symyx will assist a chemical firm in improving the yield of a process by optimizing the composition of a catalyst Company receives fees for services along with the possibility to obtain royalties for successfully developed products.

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