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Kevin Quon

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  • Refuting A Short-Selling Solazyme Critic [View article]

    That's another level of detail that I didn't go into and probably should have. The agreements are in place and some of the prices of some products are tied to the price in sugar/corn prices. Thank you for adding another fine point.

    Oct 18, 2014. 01:18 PM | 2 Likes Like |Link to Comment
  • Opportunistic Trading Pushes Solazyme To New Lows [View article]
    He makes some assumptions I don't agree with, althought no one can deny that additional transparency is desired. I don't mind him calling out management to be more forthcoming, but the idea of "bigger problems" as a possibility is mere fear, uncertainty, and doubt that ignores the ongoing progress at Clinton. The company is the proven technology, not the down stream hold up which hasn't exactly halted initial production.
    Oct 16, 2014. 07:05 PM | 6 Likes Like |Link to Comment
  • Opportunistic Trading Pushes Solazyme To New Lows [View article]
    The debt on the balance sheet is largely convertible debt. Cash wasn't used to reduce the debt apart from the early conversion perks triggered.
    Oct 16, 2014. 06:55 PM | 1 Like Like |Link to Comment
  • Solazyme: It Isn't Easy (Or Profitable) Being Green [View article]
    Did you forget to mention that Warner was promoted to Chief Enginerin Officer at Impossible Foods?

    The article could have used a little more investigative work rather than stopping once a negative trait was perceived..
    Oct 16, 2014. 11:46 AM | 21 Likes Like |Link to Comment
  • Opportunistic Trading Pushes Solazyme To New Lows [View article]
    2014 Presidential Green Chemistry Challenge Award Recipient -

    Innovation and Benefits: Vegetable oils derived from plants can replace petroleum as building blocks for many industrial chemicals. Solazyme has engineered microalgae to produce oils tailored to customers’ needs that can mimic or enhance properties of traditional vegetable oils. These micro-algae-derived oils are consistent regardless of season, geographic origin, and feedstock source.
    Summary of Technology: For thousands of years, civilization has used approximately 12 natural triglyceride vegetable oils, including palm, soy, peanut, corn, olive, sunflower, and coconut, for food, energy, and as building blocks to make a wide variety of chemicals. However, those oils may not have the ideal composition for any particular use. Vegetable oils are isolated from their source, refined, fractionated, distilled, and often chemically modified. Achieving the desired compositions from plant oils is often energy intensive, expensive, can be wasteful, and, in some cases, requires use of hazardous chemicals.
    While some companies have turned to traditional biotechnology organisms, such as E. coli and Saccromyces, to engineer to produce triglyceride oils, Solazyme recognized that the pathways that make oil in canola, soybean, palm, and coconut first evolved in microalgae. Solazyme took advantage of the inherent oil-producing ability of microalgae and developed a process to make oils via fermentation.
    Solazyme’s technology combines the innate oil-producing machinery of algae with genetic engineering to express the unparalleled diversity of oil production genes. Consequently, Solazyme has the potential to produce a nearly unlimited variety of differentiated triglyceride oils while dramatically reducing the time required to produce these oils. Solazyme has screened tens of thousands of microalgae to identify the unique oils they produce with a broad array of chemical and physical properties. In several commercial applications, Solazyme demonstrated that their oils and lubricants reduce volatile organic compound (VOC) emissions and waste compared to use of regular vegetable oils. Solazyme’s oils are currently being tested and sold commercially for use in a broad array of applications, including food, fuel, home and personal care, and industrial products.
    Oils produced at Solazyme’s joint venture facility in Brazil are expected to have a lower carbon and water footprint than many current triglyceride oils and have a far lower environmental impact than the petroleum-based products they replace.
    Oct 16, 2014. 08:42 AM | 6 Likes Like |Link to Comment
  • Opportunistic Trading Pushes Solazyme To New Lows [View article]
    Personally, I think a lot of people are reading into the "modest quantities" line a bit much. While everything warrants suspicion nowadays in the absence of an absolute, I'm pretty sure the line was supposed to keep expectations in check much akin to how Clinton's volumes were stated in the last q.

    As for the downstream equipment, it's possible they ran into some difficulties in installation. We'll just have to wait and see.

    In any sense, remember that Moema doesn't reflect on the upcoming earnings report apart from the loss it carries over.
    Oct 13, 2014. 08:16 PM | 3 Likes Like |Link to Comment
  • Opportunistic Trading Pushes Solazyme To New Lows [View article]

    2) The company had previously asserted that it would be cash flow positive around or prior to nameplate capacity of Moema (12-18 months after completed construction), granted this was before the introduction of Clinton which should only expedite that target. To be more specific, prior to the delay of Moema (which was suppsoed to come online in late 2013), cash flow positive was targeted for late 2014. As for more stock selling, I find it difficult to believe it'll need it for these plants although I would expect additional measures to raise capital in order to further expand beyond these facilties.
    Oct 13, 2014. 11:56 AM | 4 Likes Like |Link to Comment
  • Opportunistic Trading Pushes Solazyme To New Lows [View article]
    I know its hard to look at these numbers and see anything but down, but I find it most ironic when you consider the prospects now being unfolded and soon to be realized over the next 2 years. Wishing the best to you.
    Oct 13, 2014. 09:58 AM | 8 Likes Like |Link to Comment
  • Opportunistic Trading Pushes Solazyme To New Lows [View article]
    No relationship, no perks, same suffering as you. Just a long-term horizon and a strong interest in this new economy. Solazyme is in the lead when it comes to making it happen, but clearly it's too early for the market to respect or fully understand that.
    Oct 13, 2014. 09:55 AM | 9 Likes Like |Link to Comment
  • Opportunistic Trading Pushes Solazyme To New Lows [View article]
    Insider sales have been on automatic trading plans and in steady increments not timed to the market. One can argue this is bearish overall, but at same time it appears to be generalized diversification to me (and in some cases due to taxes for vesting interests according to the filings). It'll be interesting to see if these 10b5-1 trading plans continue at these prices as they stopped last time we hit these lows. But the fact they exist are pretty common in most companies. No one reads into these as long as the stock goes up, but they're heavily criticized as the stock goes down.
    Oct 13, 2014. 09:51 AM | 8 Likes Like |Link to Comment
  • Opportunistic Trading Pushes Solazyme To New Lows [View article]
    Perhaps you should actually read about the technology rather than criticize it with the stock's action in mind. The finished products have already won awards from notable trade groups. The HSHO has already surpassed the capabilities of the nearest comparables - and its now starting to be produced.
    Oct 13, 2014. 09:46 AM | 8 Likes Like |Link to Comment
  • Algae Fuel For Regular Diesel Prices? Solazyme Makes It Happen [View article]
    Hope to write about it tomorrow. But misplaced oil associations are a big contributor.
    Oct 9, 2014. 09:59 PM | Likes Like |Link to Comment
  • Did Bunge And Solazyme Just Enter A New Age Of Sugar Production? [View article]

    Shorts have to cover. Some make money and disappear, some get caught on the rise up & bolster the price. That's really all there is to it.

    My estimates will not suffice to the real figures, and the company still appears on track despite the market performance. As a whole, I would expect total revenue to be slightly higher this coming quarter - probably 17-19 million, as much of it is dependent on Clinton.

    Unfortunately, the real acceleration in revenue shouldn't occur until Moema is consolidated, which should happen in 2015 (early? late? who knows). Moema's consolidation is timed with certain shifts in responsibilities based on accounting rules supposedly.

    I wouldn't discount news at this point. The stock merely needs a rallying point at these levels. Sadly, i'm not in charge of that and the company is clearly operating as if there is a better reason to stay low. From what I can tell, there isn't anything wrong apart from a harsh market reaction (along w/ general market weakness & poor crude oil markets).

    To be honest, I believe even an update on production details could be enough to rally investors.

    Wish you the best, but if its any solace, this burn has been hurting me too. All the same, if I had to do it all over again, I would in a heartbeat. If I had tried to time the market, I would not have cared long enough to stay around.

    Oct 7, 2014. 10:19 PM | 4 Likes Like |Link to Comment
  • Solazyme: Taking Advantage Of Healthy Food Trends And The Need For Innovation [View article]

    I believe the comment on analyst expectations are overstated and a repeated effort of his fellow peers. Analyst expectations have always been high, but the latest repercussions aren't a result of this situation. The market wasn't paying attention to the analysts to begin with so its difficult to argue that their expectations are now the justification for the decline.

    As for the rest of the commentary, I have no qualms with it. It may be a fear or a perceived weak point for traders, but SZYM has derisked much of the underlying concern. Those who think otherwise, simply don't have a good grasp of what's going on. Unfortunately, the effect of the less informed and those who would profit in share price deterioration is equally real all the same.

    The author might make it sound like this was inevitable, but much of biotech is in the same situation (no earnings, promising tech, no quick pathway to profitability). It's really up to the whims of those with capital as to how they'll want to affect the company. Right now it seems like they dont mind beating it up.

    Oct 7, 2014. 10:04 PM | 6 Likes Like |Link to Comment
  • Did Bunge And Solazyme Just Enter A New Age Of Sugar Production? [View article]

    I don't want to be a dream crusher, but I don't think its in the interest of SZYM to pursue points #1, 2, or 3... and possibly 5 (although if you mean by burning biomass or utilities using the fuel for energy, then sure).

    #1 - Clean waters not a huge deal for SZYM when compared to open pond co's that have to deal with evaporation. So the water cost isn't nearly as high. SZYM's process likely uses less water than a lot of agricultural ops too. On top of that, having a more uniform result likely comes about from controlling the inputs. This is why the co has been spending so many months just getting the exact settings correct before ramping up volumes. It's ideal to stick w/ clean water rather than introducing impurities. However, that's not to say that the process necessarily NEEDS it. Their work on cellulosics already show that the process works well (but could use improvement) in less than than ideal conditions (including acidic/salinated conditions). All said, can they use seawater? maybe. Do they likely want to? probably not.

    #2 - I just don't see this happening as the organisms not created to affect its surroundings as much as its meant to survive in it.

    #3 - Salty environments is already a less than ideal environment needing to be overcome by SZYM's algae. I highly doubt it's going to be making salt anytime soon.

    This old report does give some insight into the challenges with salt.
    Oct 7, 2014. 12:43 AM | 1 Like Like |Link to Comment