Small shorts running scared this week…
A few of the really small shorts here are running off at the mouth in hopes of scaring you away from this stock. The hope is, they will be able to cover before any sort of real news is announced. If you let them scare you it is your own fault; of course, if you hold and there is an issue here then they’ll tell you that they told you so.
This company is a very speculative company. In spite of what happened in the past they have very good potential for the future and that is what all existing investors are betting on. Several of the employees are betting right alongside you; in fact, in late November several of the top insiders invested many of their 401k dollars purchasing additional shares… While another chose to invest directly on the open market.
If you are investing in Metabolix right now the following is what you are investing-in / betting-on:
1) Metabolix is a company that is working on re-inventing itself while recovering from a breakup that happened early last year. They don’t have a huge staff and they don’t have debt but they do have nearly $40 million in cash (assuming last year’s expenses didn’t go over budget).
2) This company has a bio-degradable plastic technology that hasn’t performed well in the general market; probably due to pricing (it was always more expensive than the alternative). In order to expand their product line and make their products more appealing to more customers they developed to more product lines and announced them during the final quarters of last year. The first is a compostable film grade resin, that Kenmare (a packaging solutions supplier based Milan) agreed to promote starting in 2013. The second is polymeric modifier that improves the mechanical performance characteristics of PVC (a material used in most construction projects worldwide). These products have the potential to be very profitable for whatever company ends up owning them (either Metabolix or a purchaser of Metabolix).
3) As a mentioned above Metabolix isn’t a real larger company, and for a small company they are currently in fairly good shape financially yet their continue to spend money on research (creating new products like the PVC enhancer); fortunately, they have additional sources of income that helps them with research in other areas… In early December the UCLA Henry Samueli School of Engineering awarded Metabolix a Grant for Improving the Productivity of Making Biofuels in Plants. This is one of many grants that Metabolix has been awarded over the years due to their outstanding research group. Keep in mind these grants aren’t given to the fly by night companies that the shorts would sell you; these are being given to Metabolix because the science community recognizes the gem we all have here.
4) Intrinsic value is hard to place on a company that has products, hundreds of patents (nearly 700), a handful of research grands, nearly forty million cash-in-the-bank (zero-debt) but no manufacturing capabilities. They are in the process integrating their technology with Antibioticos but until the deal is signed we have no guarantees which is why the stock now trades near cash value.
Liquidation of this company could turn out to be very profitable for new investors, but only success for this company could turn out to be very profitable for long term investors (ones who bought shares at much much higher prices).
Good luck to all investors here,
May 2013 be the year that turns your pennies into gold!
Sentiment: Strong Buy
Ho Hum. A company reinventing itself... blah .... blah .... blah .... and more blah.....
Check out the 5 year stock chart. Ask your self why ADM dumped MBLX after investing $400 million. Read the earnings release transcripts from past several quarters. Ask your self how many of the lawsuits have been settled. Only reason MBLX has any cash is because of secondary offerings that ended up being a disaster for the buyers. They certainly didn't earn the cash. MBLX is burning around $6M cash a quarter and will be out of cash by end of next year. The analysts who cover MBLX have forecasted very little revenue growth for 2013, i.e. a meager $5 million. They talk to the insiders, existing customers, and prospective customers if they are any good. Company has had their ~700 patents for a long time, and the CEO has been promising game changing developments are just around the corner for many years now. Eno never delivers.
If you do your homework and keep emotion out of the decision to buy MBLX, you would stay on the sidelines for now. Set your alerts and be poised to buy quickly on any credible news.
i.l.pelosi, did you know that you are both making up information and spreading false information? If not, then you better start digging because the fiction you printed up yesterday is something you made up in your own mind to describe what’s going on with Metabolix. If you spread lies and get caught it could have very serious implications for you and your family. You’ve been using the same Id for long enough that your digital thumbprint won’t be hard to follow. This is just a friendly warning “get your facts straight before post”. Multiple times yesterday you spread misinformation; that is the sort of thing that could have investors coming after you instead of Eno. BTW, I’m not going to tell you where you lied and where you didn’t; I suspect that you’ve gotten so good at it that you don’t really know the difference.
Pelosi.... You just killed your entire post with your last sentence, "Set your alerts and be poised to buy quickly on any credible news." The entire point is that on credible / incredible news, it will be to late to buy !!!!!!!!!!
bkrupt (from shorting too much),
Which strike are you talking about? Or are you just trying to scare more people with low-handed tactics?
Are you talking about the banker’s strike of 2013?
Are you talking about the transportation strike from early this month?
Are you talking about the general strike that happened in early November of 2012?
Oh no! The sky is falling!!! The sky is falling!!!
Keep on crying wolf if it helps you cover your shorts, right?
I believe your time is running out… Tic Toc
See you at $2 and Beyond
Perhaps much sooner than you think ‘-)
Sentiment: Strong Buy