Shorts still trying to scare sellers into giving away their shares at a cheap price. the third-party mortgage servicers continue to do their jobs. Newspaper article just focuses on the bad not the good.
I don't believe the concern has to do with demand. I think most of us believe that Solazyme can sell everything they can make. Can the make enough to realize the tremendous sales potential? Management remains silent on capacity utilization and plant expansion. An expansion announcement would prove that management has the confidence that current plants will scale to nameplate capacity. Why doesn't management announce? Are they having problems? Maybe - maybe not. Wolfson's a lawyer and very careful of what he commits to saying. Until management announces positive new on production or expansion the shorts will continue to scare holders into selling. I watch and wait.
Investors don't know if the Moema and Clinton plants have or ever will produced the output to meet the demand for Solazyme's amazing products. Since Peoria works, I expect that Moema and Clinton will also work. The stock price will languish until we get news about current and future production. I don't know of any biotech or internet company that has the potential that Solazyme has to grow into a multi- billion dollar company. Have patience!
Solazyme has not trouble with creating new things for algae to do. They need to concentrate on improving production techniques. Investors need to have confirmation that Solazyme can produce in quantity all these dream products.
without news from the company, I believe the stock price will stay in a trading range 8.50 to 9.50 for the next month or so. The next earnings call will tell the tale. If management disappoints, then expect a drop in price and holders get disgusted and tired of waiting. However, if management announces capacity increases then the stock price will rise. The really move starts after a conference call in which management announces EPS near break even. I hope this happens by mid year next year. The company has lots of potential. I wait for management to demonstrate that they can execute.
WAC, OCN and NSM all over the potential for tremendous profit growth. If regulators can decide on the rules then the mortgage servicers will adjust their data processing to conform to these rules. This is a one time expense.
The daily chart shows a 20 day base and tight bollinger bands. Stock price should pop one way or the other this week.
Just remember that great stocks go down in price just before the share price soars higher. It may take a week, a month or a quarter but if Solazyme staff can execute to meet the obvious demand, then investors will buy. I mean, how many companies do you know of that have the growth potential of Solazyme?
An announcement of huge capacity expansion. Demonstrates that management has the demand to justify risking expansion and it allows investors to project future sales revenue and profits. The current capacity limits the future revenue growth.
On my chart, I notice that Solazyme has its first SAR dot under the daily price bar. SAR stands for Stop and Reverse and often predicts a change in price direction. Positive news could boost the price. We need to watch and wait.
You assume Bunge gets it half without paying any royalty to Solazyme. I assume that Solazyme and Bunge share the total profits from the operation and I think sugar costs are too high and ASP too low. Time will tell. I agree capacity expansion plans are needed to push stock price higher. We wait.
I listened and read the last conference call. Management (Wolfson) understands that the company now has to execute and deliver sales and production. I think plant expansion plans remain on hold until operations gets the current plants working at a capacity level where management feels confident they can produce what they have sold. The key then remains plant operations. I wait, like others, to determine if Solazyme can start to realize its potential.
I believe that if Solazyme could obtain a contract for a huge quantity of fuel that would justify building new plants that they would take the contract once they have experience with the current plants. Today, I believe that Management really doesn't know the cost of manufacturing. The need to see the current plants reach name place capacity to determine that cost and they will consider fuel contracts.
Strong growth in mortgage servicing, ordinations solutionstar demonstrates the value of the stock far exceeds it current price. Management expects continued EPS growth in subsequent quarters. As more investors learn of Nationstar's potential, the share price should rise.
The general mood of stock investors now controls SZYM not the Solazyme fundamentals. I am sure many wait on the side lines waiting for positive new on Solazyme or more positive economic news.
Solazyme has the potential to grow huge and make enormous profits yet to achieve this potential requires Execution and Capacity expansion. We wait for the next quarter report to monitor progress.