Don't worry, shorts are optimistic and know how this will all end, though it will take awhile. So taking your trading profiits and
It's a UPS fluff piece aimed at: : "“UPS believes these agreements are especially important because they will help stimulate demand for investment in refinery technologies and sustainable feedstocks needed to produce renewable fuels at a total cost that is comparable to more carbon-intensive petroleum fuels,” said Wallace [a UPS, VP]." UPS wants more cheaper bio-f prices from increased competition.
You asked the wrong question. Go to UPS press room and you will find a PR which begins "UPS® (NYSE:UPS) today announced agreements for up to 46 million gallons of renewable fuels over the next three years, constituting a 15-fold increase over prior contracts and making UPS one of the largest users of renewable diesel in the world. . . ."
May also wish to compare with the Flotek PR of April 14 the pop of 25% one day and 50% over three days. Of course, we know all those gains, and more, have been taken back by the market. But still a far more significant pop.
In comparison with previous partnership announcements, the response to the BASF announcement has been muted. Perhaps that is due to the lack of substance. For example, last year's July 31st PR was with a paint company and provided scale (10,000T/Y) and joint research agreement. This year's on the other hand is absent details and the color they provide. Of course Solazyme is now treated as a post development company and the financials are what matters. Partnerships were nice during the halcyon days of Solazyme's youth, but now it is expected to perform, to produce actual sales, to be judged by the financial statements and not pre-conference call hype.
While long at the moment, that is likely to change quickly.
Good trade. Is it correct to assume you covered due to the possibility the BTC may pass shortly? the cc next week could provide upside since management seems confident having recently committed to a major plant upgrade at Danville and may have surprise in store?
And to think I had a bid filled on that thinking. Ugh. Went back and looked at the chart to see what happened after the that July 30, 2014 cc. Ugh. Checked the transcript for what brought that result about and there was Wolfson bragging "At Moema we’ve made great progress addressing the utility issues." ugh!
You would think the market is now oversold, but then you look back . . . and see the future? ugh!
The credit being shifted to the producer level has been well known. It was in the first draft of the lgs. My guess is that it will not significantly change the way REGI does business, i.e. they will share the credit with their customers the same as always though it may shift the percentage split somewhat (or may be not). I am going on past comments by management to the effect that it is a question of relative bargaining power. With the credit in place producers will increase supply and price will adjust downward. May already be seeing this happen as RIN prices have been falling (again more supply of bio-d, lower price for RINS, hope REGI has minimal inventory of same) in anticipation of greater supply? Could be. However, substantial profitability is very likely for the next two years if the bill becomes law.
Solazyme has no unencumber IP (Algenist excepted). There IP is subject to the Moema JV and prior partners' claims. Their's is not a pristine estate.
What you don't know can be fatal to your fortune.
Hmmm, but Flocapso is not a product, only an announcement of a future product to be released in the second half. And Flotek's CnF chemistry has sold great because the average selling price was dropped. You did notice that your unattributed quote from Flotek's PR is based on "volume" not revenue? Suspect Mr. Market will pay attention.
Yes, and what is really curious is they have revenues of 156M which includes 1/2 of Moema (remember guidance was for consolidation in '16) and they are still losing over a buck a share.
That's nice, but will it sell for less than competing high oleic soybean oil? high oliec sunflower oil? Who would chose to use an oil product from a company that is laughable. And if you don't think laughable is appropriate, you might change your mind if you heard the jokes Roquette's salespeople are telling about the electricity farce at Moema.
Hmmm. Sounds like you should have bought FTK. I did and just added more, albeit at the dreaded high for the day.
Looking forward to hearing some real pounding on the table in the morning.
Yes, "This technology is in its infancy" and will survive as it has already being adapted by DuPont, Roquette and who knows how many more. But then the question is not about the tech's survival . . . it is Solazme's survival that is in doubt.
How many times have I told you guys, "If you don't ask the right question, you will never get the right answer." But Mr. Market knows . . .
Interesting if you like 5 year old news. Then why don't you try reading the 5 year old IPO filings. You should find those interesting, though, if you were a realist, you would find them more for comedic relief.