Tristan R. Brown
Alternative energy, long/short equity, commodities, energy

Bioplastics Producer Metabolix Is In A Race Against The Clock

Executive summary

Bioplastics producer Metabolix has survived the termination of its joint venture with DSM but is struggling to develop new sources of revenue. A shrinking cash reserve and the need to acquire financing for a new commercial-scale facility before substantial revenue growth can be achieved make a further decline in the company's share price likely. Only speculative investors with a high tolerance for risk should consider buying this company's shares.

Investors in bioplastics producer Metabolix (NASDAQ:MBLX) have experienced their fair share of volatility over the last year as the company's share price has made repeated 50% swings in both directions. Despite this volatility (or perhaps because of it), shares are trading at roughly the same level today...

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