The folks at Metabolix like to talk about their product but they really should focus on how it can improve the 3D printing market! There are a lot of people producing a lot more plastic products yet many don't realize that their is a sustainable biodegradable option. Metabolix should move in and take control of that space. The following says nothing that catches many eyes; they really should be partnering with 3D Systems or Stratasys or ExOne or any of the big 3D printer companies:
Metabolix has developed new amorphous PHA biopolymers with the physical characteristics of a low Tg rubber. These new rubber modifiers have been shown to improve the ductility and flexibility of PLA, while also retaining clarity and compostability. In PLA extrusion applications, MirelTM rubber modifiers lower stiffness and brittleness and improve tactile feel. In PLA film applications these rubber modifiers also increase tear resistance. PHA and PLA biopolymers are both biobased and compostable, making them attractive for sustainability and performance-driven business opportunities.
"Metabolix continues to make great progress in the use of our core PHA technology as a performance-driven modifier in applications where improved performance of both biobased and conventional polymers such as PLA and PVC is desired," said Joseph Shaulson, president and CEO of Metabolix. "In this case, Mirel rubber modifiers have the potential to expand the application space for PLA which may lead to new business opportunities."
"These innovative Mirel rubber modifiers are an exciting extension to the Metabolix PHA technology platform. Their capability to modify and improve PLA demonstrates performance that is comparable to traditional non-renewable rubber modifiers without compromising the renewable nature of PLA or key features of clarity and compostability," added Bob Engle, vice president, biopolymers of Metabolix. "We look forward to presenting our new biobased rubber modifiers...
Sentiment: Strong Buy
Ready, when is the next conference call? It should be the first with the new CEO so it will be interesting to hear what he has to say about current sales, future sales, financing and partnerships. This company was in real need of new blood and fresh talent, and they finally got it! We now have something to look forward to instead of the smoke and mirrors that Eno presented. I imagine that it will take awhile to turn the ship around yet it will be very interesting to learn anything about the new course it's on. This should be Metabolix's year to shine; hopefully a big turn around for longs and the end of the big short.
Good questions... This is why they should partner with one of the big printer companies (like 3D Systems Corp DDD) and use their deep pockets to own the space. Metabolix has the patents but they don't have the financial savvy and until the new CEO they didn't have the charisma to open new doors... Let's hope that the new CEO has the leadership skills to take this to $2.00 and beyond!!! Blowing out the doors in 2014!!!
I've seen ideas floated here for partnering with one of the 3D print companies to make a new high quality biodegradable print material. IMHO, that is worthy of investigation and a partnership there could lead to much more.
Anyone here in the construction industry? Does Metabolix's latest ventures into PVC interest you at all? Does it sound like they have something big on their hands or just another novelty that will go the way of biodegradable beach toys?
The short count here is intriguing... Any positive development and this company could double overnight. If it's a long term commitment with one of the 3D printer companies or a large construction firm and it could triple within a week. The potential for a nasty squeeze exists here and perhaps the new CEO will figure a way to help make that happen.
I imagine that the recent drop has a bit to do with end of the year tax loss selling... With so many gains out there why not take a few losses where you can. It will be very interesting to see if there is a bounce right after the start of the year (or within the first 30 days for those who worry about wash rules).
Here's to $2 and beyond!!!
May it happen much sooner than you expect '-)
Here are a few related paragraphs about that agreement:
The Schuler Agreement provides that if the Schuler Stockholders’ beneficial ownership of Common Stock at any time equals or exceeds 15% of the then outstanding shares of Common Stock and either they hold the shares with the purpose or effect of changing or influencing the control of the Company or in connection with a transaction having that purpose or effect (“Control Intent”) or ... then the Exemption will immediately terminate and they will immediately become Acquiring Persons under the Rights Agreement... If the Schuler Stockholders’ beneficial ownership of Common Stock at any time equals or exceeds 20% of the then outstanding shares of Common Stock, the Exemption will immediately terminate and the Schuler Stockholders will immediately become Acquiring Persons under the Rights Agreement.
The Schuler Agreement provides that during the period commencing on the date the Schuler Stockholders’ aggregate beneficial ownership first equals or exceeds 15% of the then outstanding shares of Common Stock and ending upon the termination of the Exemption (other than a termination resulting from a Schuler Stockholder becoming an Acquiring Person) (the “Support Period”), the Schuler Stockholders shall cause the shares of Common Stock beneficially owned by them and/or their respective affiliates or associates: to be present for quorum purposes for any annual or special meeting of stockholders of the Company and to be voted in accordance with the recommendation of the board of directors of the Company at any such meeting or in connection with any written consent of the Company’s stockholders. In order to facilitate the foregoing, the Schuler Stockholders agreed to deliver executed proxies to the Company at least seven days prior to the date of any such stockholder meeting.
ready, you appear curious about the schuler agreement and his status relative to metabolix but I suspect you have the same problem interpreting legal mumbo jumbo that the rest of us do. That’s okay, I’ve never found a legal contract that didn’t bore me to death before the end of the first paragraph.
When the schuler agreement was released I tried several times to determine what it meant and basically concluded the following (although I’d have to go back to the agreement to get the correct legal terms and I’m not about to do that again).
Companies do everything they can to limit an individual’s ability to control a majority percentage of a company without explicit board approval. In Metabolix’s case, if an individual exceeds a certain threshold then something kicks in that limits their ability to vote their own shares (releasing their voting rights to the board). I believe that the schuler agreement extended jack’s limit up to 15% but gave him the right to purchase up to 20%. He currently owns his limit (plus or minus a few shares) without falling into the special category that would require him to give up his votes to the board.
Keep in mind that jack is over invested here, he already owns nearly 15% of the company, and dollar cost averaging down near $1 would be a great thing for him to do if he could but giving up ones right to vote isn’t worth it. If another company comes through with a great bid for Metabolix and the board doesn’t want to take their offer than jack’s voice may be the only sizable one that speaks independently for the rest us. As long as he doesn’t exceed the 15% cap then he has the ability to be an activist for change. I don’t want to see him give that up!
Personally, I’d like to see the board give him the rights to purchase up to another 5% without effecting his current status. I’d also like to see them invite him to a seat at the table. Jack’s presence either on the board or through additional purchases would be a very good sign.
Sentiment: Strong Buy
Re: "Shorts have to think twice when a person with real inside information spends another hundred thousand scooping up more shares :)"
I'm sure that the rest of the insiders are hoping that it gets back near $1 so they can scoop up some cheap shares too!
Sentiment: Strong Buy
Shorts have to think twice when a person with real inside information spends another hundred thousand scooping up more shares :)
Sentiment: Strong Buy