+ Watch SZYM
on My Watchlist
raise to $17 from $14 by Cowen analysts who see production volume ramping in the latter part of 2014
This is leading edge technology in an energy industry where the big boys get subsidies. I bought now, after watching this stock for about a year, because 2 things converged: consumer sentiment is shifting that will favor this technology and an actual manufacturing plant was opened in Iowa. This equity is one of two stocks that represent more potential than tangible products slice of my investment pie.
MF secret hidden gem, thanks Andy and Seth
Clinton and Galvin on-line, Moema to be on-line shortly. Positive earnings expected 2015. Skies the limit when it comes to replacing traditional oils for cosmetics, food. Lower profit margins will make replacement of jet fuel, diesel marine a lower company priority.
They are going after oils first, not fuels. Much more profit potential. New plants coming on line, lots of customers all point toward a great profit story for 2014 and beyond.
This company has compelling technology and patents in several key areas. It could become one of those save-the-earth industries that become an integral part of our economy and survival.
OK, as just one example of the things this company is doing to stand out as an innovator-they won the prestigious Marie Claire Excellence in Beauty Award-for those of you who never set foot in an airport with foreign press this may not mean much-but they are the Vogue of Europe and as such this award means adoption by mainstream women looking for premium cosmetics-you know, the real money maker in their basket of algae miracles. Bodes very well for their reputation. I think this company gets where to go and how to get there. The next few quarters will tell a lot as well given their scale up efforts.
SZYM looks like a prime candidate to be a many bagger within five years. It has unique technology, a large market, and is on the verge of starting commercial level production. SYZM’s uniqueness and attraction for me is its demonstrated ability to produce existing oils and tailor new oils, combined with its ability to develop marketing partnerships with market leaders (Dow Chemical, Bunge, ADM, Unilever). There is also potential to develop markets for tailored oils at costs unmatchable by existing technology. Management is young and ambitious, but appears to be capable in R&D, marketing and partnering. Risks include the fact that their technical methods and business ability are yet unproven in industrial scale production. Their ability to ramp up production to industrial levels will be tested this year as their plants are schedule to come on line. If they succeed, they should begin making profit, and the stock price should reflect both the income and the lowered risk. SYZM is a speculative investment, but I think the potential reward far outweighs the risk that the company will fall flat in either production or marketing. To increase the attractiveness, SZYM market cap is less than $800m and they are thinly covered by market researchers (five that I can see), and what coverage there is says to neutral or sell.
The opportunity for solazyme is vast. However there is no guarantee. The economics of producing fuel this way might not become viable for 20+ years. If we are still using the same fuels by then.I think the bigger opportunity now is guaranteeing speciality ingredients to large multinational chemical companies. The more unique the oil the better. This will give the multinationals better forecasts and less reliance on oils extracted from crops (which can fail and cause huge fluctuation in pricing). Hence reducing production planning and costs over the long term, in turn producing even more pricing power compared with their competition.If they can build a steady base doing that, then I think that activity can finance the more risky energy competitor stance. As can be seen with the recent deals, this seems to be their chosen route. Strong leadership from the top is an essential for any success here though. The new COO David Cole could be an excellent step in this direction. As such I have opened my first small position. My main worry over the long term is the debt to expand and grow this company becomes unmanageable.
This alternative fuel company continues to sign deals with major industry leaders (United for instance). If they can keep the markets expectations reasonable this should be a big win for everyone.
Great tech, protected by patents. Big partners in ADM, CVX, Bunge, Unilever and others. Dont think they would expand agreements and partnerships without an actual benefit too themselves.Small cap with huge adressable market. Proven scaleability.Cheap feedstockAnd the potential to produce oils that nature can not.I have read every SEC-filing and listened to every CC. Maturing and competent leaders.This is my highest conviction company. EVER.bougth a big chunk after the last quarters earnings report. Future multibagger.
likely a slow growth considering resurgence of ng, but there are several huge potential markets for their products that will grow in value over time. Cost effective generation of renewable oils that are comparable in energy density, don't compete with food production, and better for environment could become the standard fuel for common transportation workhorses like air travel, trucking, and rail freight as next step of carbon reduction efforts..
Disruptive technology just about to be commercialized. Strong partners already signed up and committed.
Speculative CAPS play here on a big disappointing quarter. I have seen some of the food products & they are pretty cool.
Exceptionally attractive social value story. I'm rooting for their success but the competing energy economics will chronically pull the football away at the last minute.
Intellectual Property advantage
The company is flexible enough to know that they are bringing oils to the market and their focus on oils for cosmetics is an excellent use of their expertise. This along with securing a large contract recently indicates to me that sustainable oil from algae does not have to be used in vehicles. They are focusing on highly profitable niches until they can develop economies of scale for vehicle oils.
This company's Brazil affiliate will use sugar/algae generated diesel fuel. If they can produce it cheaper (suagar and algae are cheaper), it may well replace oil for diesel in Europe.
Ramping production, market under appreciates this biotech's potential game changing renewable energy solutions. Starting up production will be challenging and I expect volatility for the next several years.
There's a growing mistrust of the food and cosmetics industries in terms of the harmful chemicals and allergens that we are finding used within them. (Consider the movements afoot to demand GMO labeling.) Add to that the same concern for the environment and the burning of fossil fuels. Although SZYM isn't currently developing a supply of energy friendly, sustainable fuel they have the platform to do so were the economic winds to shift in that direction. Of course we are talking a look way down the road of possibilities. If they are able to get this first stage of development in their partnership with Unilever off the ground it seems the sky could be the limit. It would say something about their ability to bring a product to market collaboratively, an ability that has been untested up til now. Looking at every day realities there are all kinds of snags that could slow down the process, if not throw it off track completely. I believe that Brazil is subject to volatile inflationary pressures and a government that will assure Brazil's economy is protected even if that means foreign investment there suffers. (Of course that is better for everyone in the long run but can make trouble in the short run, especially if SZYM is trying to coordinate delivery dates.) (Please correct me if I'm wrong.) Also not being clear on the details of what ended the relationship with the French company that was in process to cooperatively actualize a product could cause an investor to be a bit nervous. I know what they said the reason was, but was there something else we don't know. And, if there was something, could that something else turn up in this Unilever deal. As of now I have only 100 shares of SZYM, but looking to add more with the next pull back.
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