Solazyme (SZYM) is an interesting company on the brink of commercializing its innovative product platform. What does it do?
Solazyme, Inc. produces and sells renewable oil for chemicals and fuels, nutrition, and skin and personal care markets. Its proprietary technology transforms a range of plant-based sugars into oils, as well as allows producing and selling specialty bioproducts from the protein, fiber, and other compounds produced by microalgae. Its renewable products could replace or enhance oils derived from petroleum, plants, and animal fats. [Yahoo]
Seeking Alpha contributor Kevin Quon argued after interviewing management again:
Solazyme (SZYM) has now reached the point of commercializing a proprietary technology platform that has spent a decade in development. The company is capable of significantly altering the supply chains of established industries by introducing oils with unique properties.
However, Quan laments that the company isn't seen in the proper light, that is, it's capabilities to produce customized oils is not appreciated:
Even now, media publications continue to errantly tag Solazyme as a mere biofuel play or solar stock in stark contrast to its position as a growing industrial biotechnology leader specializing in customized oil design.
Well, with a market cap of $850M+ it certainly is recognized for something as its revenue was just $44M last year whilst only producing fairly substantial losses so far. But revenues are about to be revved up as the technology scales from lab to plant and two commercial plants will come online
The stock seems to be caught between $8 and $13: