Edward Schneider, CFA
Tech, chipmakers, telecom, internet

KiOR: $1.7B Market Cap With No Revenue

KiOR Inc. (NASDAQ:KIOR) has a market cap of $1.7B at the current price of $16.91. In the latest reported quarter, KiOR lost $34M and had an operating cash burn of $25M. These cash burn numbers will increase as the company embarks on building wood-to-fuel converter plants. Cash, net of $31M in debt, was $176M as of June 30, 2011, aided by a June 2011 IPO. This cash will not last through the projected breakeven point which is still years away.

KiOR is a biomass company that plans to convert wood to petroleum. KIOR has similarities with another biomass company, Petroalgae (PALG.PK), that we wrote articles about previously. Both companies currently sport a market cap in the $1.4B to...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details