Senomyx, Inc. (SNMX)

If Pfizer can make a pill that makes you think that you had a cigarette but you didn't (chantix), SNMX can make you think there is salt in your soup but there isn't (flavor enhancer).

Senomyx Inc is engaged in discovery and development of new flavor ingredients and flavor modulators, which modifies the taste of food and beverages, reducing sugar and salt concentration. It primarily focuses on the development of savory, sweet, salt and bitter flavors, flavor enhancers and taste modulators. The company has partnered with leading packaged food and beverages players like Nestle, Coca Cola, Kraft, Campbell Soup, Cadbury-Schweppes and Ajinomoto. These agreements provide the Company's partners exclusive or co-exclusive use of Senomyx's flavor ingredients in specific product categories and geographies.

Manufacturers in the packaged food and beverage industry are targeting growth categories like health, wellness, convenience and premium taste. Companies are pursuing various strategies to position its products based on formulations including flavorings, health promoting and preservation ingredients. Senomyx is capable of screening hundred thousand compounds annually using the company proprietary taste receptor based assays and screening technologies. Senoymx has leveraged its technology on discovery and development of natural high potency sweetener. The demand for no calorie or low calorie alternatives presents a sizeable market opportunity.

However, even with strong industry growth and modest rise in revenues, the company expects to incur losses for 2007 on account of stock based compensation. With high dependence on its relationship with its collaborative partners and their ability to commercialize products, the stock does not attract investors. Also the management expects net loss per share in the range of $0.89 to $0.96 for 2007, as compared with net loss per share of $0.77 for 2006.

First heard about this company from a fellow Breaker . . . Senomyx is entering into some nice agreements with some great companies . . . I see lots of growth ahead.

Improved taste enhancers that alter the way your taste buds perceive taste. Just about to bust out of the gate.

Although this company has yet to record a profit, Senomyx, along with Redpoint Bio, and Allylix (similar companies) are using pharmaceutical technologies and business models to reinvent the flavor market. Each hopes that one or more of its products will become the food industries version of a blockbuster drug. The potential demand and market for these flavors is enormous. For example, Senomyx is currently under contract with coca-cola. How much coca-cola is sold worldwide do you think? The flavor industry meats bio-tech. Goldmine in the long run.

Had them on my watch list for over a year now, a very interesting little company. I like their prospects.

Senomyx develops flavor additives with a patented technology based on how "Taste" is experienced from the Bio-Chemical perspestive. Low salt foods can be made to 'Taste' salty. Soybean products can be made less 'bitter'. MSG ( Mono sodiuj glutamate ) can be taken out and the taste can still be 'Savory''. SNMX is working with a number ogFood Companies like Campbell Soup. I think they have great products, a pipeline of NEW products being developed in partnership with the customers who want them AND -- SNMX could be a Take-Over target for any number of companies who need "Taste" in their businesses. Bottom Line -- A Take-Over PLAY !!!

This stock is all about risk/rewards. If a single one of their flavor compounds is successful, expect huge gains in the stock, let alone if they were successful across the board.

This past weekend I was at the Franchise expo in Washington DC and TASTE is the number 1 reason why you would be INTERESTED in putting money into a franchise such as... Robeks, Wings Over, Froots, etc etc.. Now, with these companies hiring the like's of Senomyx to keep up with other foods in their market this stock has a potential to get back in the $10-12 point in the next two-three years

Companies are always looking in reduce costs and with the increased demand on commodities companies are going to be looking for ways to reduce cost without losing flavor. I think there are going to be bumps along the way, but SNMX will eventually be included in a lot of the products we buy.

Pure speculation. I like the science behind their product. If they can pull it off, and improve the taste of soft drinks and soups while cutting the amount of sugar and salt, the stock should be a big winner. However, if they fail, expect to lose it all.

VALUE LINES - WORST PERFORMING STOCKS 13 WEEKS

Sounds tasty!

This company uses biotechnology to improve the taste of packaged foods and beverages. Large food and beverage companies license its technology (e.g., bitter blockers, etc.) to make health food taste more like regular food. Tremendous room for growth. Consumers want to eat healthier foods, but they won't compromise taste for wellness.

Picked by TAR12

In addition to the obvious positive fundamentals of the business (health movement, strong partners), here are 3 more reasons to like SNMX right now:

1.) Legendary high-growth investor John Laporte owns $21.0 million worth in his T. Rowe Price New Horizons fund and T. Rowe Price holds $75 million in total between its institutional and mutual fund holdings representing 23% of the company.

2. ) With its first commercial product finally expected to hit shelves in a matter of months, I'm betting the summer will be kind to SNMX.

3.) At $12 bucks and change the stock is trading near the bottom of it's 2 year range of $12 - $20.

Another Jim Cramer pick Tech

Just getting in while its at a discount, following TAR12 here.

Taste enhancers can't go wrong in theis culture