How much of that business can Solazyme win? Is the quantity big enough to justify building a new plant in the Eastern USA? Maybe in the Carolinas or Georgia? Who is the competition? How many other companies have Solazyme's technology and size?
Solazyme has so many levers that anything is possible. Like many here, I eagerly await the news release and conference call.
one of the most important pieces of information we hope to learn on the July 30, 2014 conference call is the sales of Encapso. The Encapso site looks very polished so I expect that Sales are going well.
Does anybody think that Solazyme will report bad news next Wednesday? Bad news they would have already reported. Good news they hold for the quarterly earnings conference call. Next Wednesday management will report good news about the past and future growth of the company. Bet on it!
Great Products with enormous potential. Don't expect this much this quarter as the company is still in the ramp up stage. Next quarter is more important. I believe that long term investors will hold on to the stock no matter what. I expect to hold unless Wolfson resigns.
capacity, Capacity, capacity. Great to have to ability but you have to have the manufacturing capacity to deliver to the market at a cost that generates great profits. I watch and wait for Solazyme to achieve this goal. For me, management plans for increasing capacity represents the most important item in the CC call on July 30.
Honeywell getting business that Solazyme should get. When will Solazyme announce that they have a big customer for their SolaDiesel?
Who has more to fear from the conference call - the longs or the shorts? It is likely that management will announce positive news. Some Analysts will understand that over the next two years that Solazyme has tremendous potential. for growth. Every quarter management will announce an increase in revenue, new products and progress on expansion plans. Solazyme has products that customers want and need. The shorts hope for setbacks and disasters and a vicious down market. I am more optimistic and believe Solazyme will achieve its goals and the stock market will grind higher. My advise to the shorts is to watch and wait for the news that assures Solazyme future and then go long.
plant capacity, plant capacity, plant capacity - who has the biggest and most efficient and can deliver wins.
I am sure Solazyme chemists are much further along. I wait for Solazyme to get an order to supply diesel fuel and then build the plant to supply the fuel.
The first qtr of 2014 Solazyme had revenues of S12.4 million. My wild quess is that second qtr revenue should range from $18-20 million (6,000 - 6,500 MT at $3,000 a ton). What is your opinion?
I believe the key to stock price appreciation rest will capacity expansion, huge sales growth and profits. Show investors that you have a 3 year plan to build 1 million MT plants because Solazyme is selling everything they can product at $3,000 a MT or better and the stock price will move up. Announce long term sales contracts for half that capacity and the price will jump higher. Show quarter after quarter EPS gains and the share price will soar. All this will take time - maybe 2 to 3 years.
Some major event must happen for Solazyme to move up in price. It management announces a large contract or lays out expansion plans over the next few years or they announce a new product line that obviously will generate billions of dollars in revenue, then the stock price will jump. My belief is that this is a buy and hold situation until something happens.
If you study DDD you will discover that earning went from 2 cents to 98 cents over a four year period. Like DDD solazyme needs time to mature. The key here is growth in production capacity. If management lays out a plan to expand capacity to 1,000,000 MT over the next 3 years and report profits in late 2015 then investors will bid up the stock price. I predict the major price move will occur in early 2017. In the mean time Solazyme stock price could double between now and next summer. Just hold on and keep the faith.
EPS grew from 2 cents a share to 90 cents. EPS growth remains the key to Solazyme future share price appreciation. If Solazyme can deliver sales and earnings over the next 3 years that approach $1-2 a share then you will see the stock price appreciate to $40-50 or higher. Solazyme has lots of promise but we wait for them to deliver. What is the constraint on Sales growth now - demand or capacity. If management announces plans for new capacity then we know that capacity is the constraint until then it is demand. Will the market place demand the products that appear to have so much appeal - Algenist, encapso, Algavia and the diesel fuel.