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Kevin Quon

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  • Solazyme Provides An Alternative To The Oilseed Industry [View article]
    Alan,

    You failed to do your research. Try again.

    Kevin
    May 27 04:39 PM | 1 Like Like |Link to Comment
  • Solazyme Provides An Alternative To The Oilseed Industry [View article]
    H2KOLOB,

    I'm curious why you're so convinced that the company is competing against the farmer (based on your last two comments). Rather, it would seem that Solazyme is helping the farmer out by providing a higher return on their output. They're opening up the amount of demand by allowing the farmer to provide feedstock capable of producing higher margin products.

    The point about the yield per acre was to show that it now takes less resources (costs) in order to produce a similar amount of value. If it takes 7 farms to essentially provide a similar level of output in terms of volume & quality than it does of 1 farm producing another feedstock, a fair market will naturally balance out the supply and demand of each. Yes it is true that soy crush serves as another source of revenue. But what makes you doubt that algae biomass won't be be just as important? Additionally, what makes you think that sugarcane biomass won't be just as useful in reducing costs down the road?

    I have a feeling this could lead into a rather tedious debate of speculation so unfortunately this will be my only reply. The floor is yours, good sir. :)


    Kevin
    May 20 10:09 PM | 4 Likes Like |Link to Comment
  • Solazyme Provides An Alternative To The Oilseed Industry [View article]
    "ultimately competes with the acreage for growing food"

    On the contrary, I would've hoped my article shows that it can be quite the opposite. This process can make use of acreage significantly more efficiently in some instances. If two similar products can be made with one utilizing significantly less resources, a free market economy will allow for the efficiency to eventually naturalize itself out. We're talking about many, many years (perhaps even decades) before NEEDING to have cellulosics & other sugar sources. Re-purposing of the land will just equate to more sugarcane/beet/corn etc production & less soy production (for example) & greater yielding outputs altogether.
    May 15 11:13 PM | 2 Likes Like |Link to Comment
  • Solazyme Provides An Alternative To The Oilseed Industry [View article]
    Intwo, I would still enjoy reading your own piece. Spend a few minutes here & there and I'm sure you can find the time to make it happen.
    May 14 12:59 AM | 3 Likes Like |Link to Comment
  • Solazyme Provides An Alternative To The Oilseed Industry [View article]
    There's a lot going on here. But from a pure production expense standpoint, it would appear we're looking at $466/acre for sugar & $408/acre for soy. But there's plenty of more factors to consider.

    Either way, the primary concern I was attempting to address was the concept of indirect land use that biofuels is often criticized for. By using this process society may actually benefit from making much more efficient use of arable land. What might get even more interesting is when you start comparing the resources farmed on very niche areas of land.... ie coconuts.
    May 13 10:54 PM | 2 Likes Like |Link to Comment
  • Solazyme Provides An Alternative To The Oilseed Industry [View article]
    That sounds quite complex. But some quick research shows a decent comparison between some figures for 2011 with these two links:

    sugar -
    http://bit.ly/10U0Ivs

    soy -
    http://bit.ly/101M3CV
    May 13 10:36 PM | Likes Like |Link to Comment
  • Solazyme Becomes Part Of AkzoNobel's 'Future-Proof Supply Chain' [View article]
    I wouldn't believe it even if I heard about it. That's why I'm curious as to why manfac believes such speculation even exists.
    May 10 06:02 PM | Likes Like |Link to Comment
  • Solazyme Becomes Part Of AkzoNobel's 'Future-Proof Supply Chain' [View article]
    Out of curiosity, are you suggesting this rally is only taking place due to supposed takeover speculation? I wonder what made you think of that if so.
    May 10 04:19 PM | Likes Like |Link to Comment
  • Solazyme Becomes Part Of AkzoNobel's 'Future-Proof Supply Chain' [View article]
    RWRATTI,

    Thank you for reading, and I'm just as blessed as you to have stumbled upon such a progressive find through SZYM. As for the company's corporate future, I personally believe that it remains in the best interest of the company to remain independent rather than to be acquired (assuming that was the implication of your question). There comes a time in which every company's leadership must wager whether the company can be propelled further by being acquired. Are they in better hands by being under the wing of a larger company?

    In SZYM's case, I actually don't see this to be so. Not only is the market potential already beginning to be realized, but its not yet fully developed. Unless coerced, why give away the company unless you're confident the potential's ceiling has been maxed out? The financial picture is also not as dire as some would be led to believe. Clearly the capital markets are still open for SZYM, and debt is becoming ever easier to come by. Significant cash flows should also be imminent as well as production starts.

    Additionally, the way SZYM is structuring its business also makes it unlikely for an acquisition. Multiple joint ventures do not necessarily make for easy consolidation assets. Partners aren't exactly going to be happy if they now have to work w/ their competitor for instance. Likewise, SZYM is already leveraging the capabilities of large corporations through such JV's.... so its not like getting acquired is going to further leverage their abilities to operate through the use of the acquiring company's non-financial resources.

    In the end, if it just comes down to money, I still find it an unlikely acquisition target. The technology hasn't been fully developed let alone fully implemented. The primary operations haven't even begun yet which should also deter any possible acquiring party altogether. Last of all, who would do the acquiring? The most likely candidate would probably be an agroscience company like Monsanto (in my opinion), but even they have a very comfortable niche in seeds and wouldn't necessarily need to diversify their base. It could happen, but somehow I still believe that leadership sees much more potential than selling out at these levels.

    The only thing I would be afraid of is a hostile takeover (as if that was ever bad for an investor...). Hopefully that won't happen, or if it does, that it would be done by a public company. I'd personally hate to lose out on partaking in this company's future.

    Kevin
    May 10 11:39 AM | 1 Like Like |Link to Comment
  • Solazyme Becomes Part Of AkzoNobel's 'Future-Proof Supply Chain' [View article]
    Oh, don't go scaring away my #1 fan, please. I do appreciate his patronage. =)
    May 9 10:15 PM | 2 Likes Like |Link to Comment
  • Solazyme Becomes Part Of AkzoNobel's 'Future-Proof Supply Chain' [View article]
    gotincome,

    You bring up a good point, and in truth its always been a bit of a concern for myself as well. However Wolfson did shed some light on this topic in the latest call that you mention:

    1) "deep in the process" - It appears that the company is already pursuing such approvals prior to commercial launch and has shown no reason to believe they won't receive them.
    2) Remember that the process pretty much works in that as long as there's the official "no questions to ask", things should be fine. A flat denial isn't really in the picture until after you get the chance to show its safe, which is only after there's a question about a specific aspect.
    3) Key comment from Wolfson was: "There are some chemical ways to do that..." so its not truly a new concept altogether. It's being done, just not in a substantial manner.

    Another thought to consider is that the company is pursuing global markets, which have many different standards. What may not work here, may be OK elsewhere.

    Additionally, many of these oils are actually not be altered so much as the algae cell generating it. It's a similar reason why agroscience co's are able to get cleared so easily.

    Also, remember that these oils span across multiple industries. Nutritionals is sure to be scrutinized a lot more than chemicals for instance. Such flexibility is nice. Regulations may be, at least in part, one of the reasons why SZYM passed up on pharmaceuticals for now. I'm sure down the road, they are likely to consider it given impact they could easily have there. But right now they're targeting large volume markets with greater ease of access.

    Last of all, consider that SRN is operating outside of a real risk-zone from a nutritionals standpoint. All the non-GMO stuff has essentially been given to SRN, and they already have the go-ahead it appears. So even if tailored applications in nutritionals take a little longer, there's no real rush perse w/o still gaining market diversification. You'll still have a foot in the nutritionals doorway.


    Kevin
    May 9 10:14 PM | 5 Likes Like |Link to Comment
  • Solazyme Becomes Part Of AkzoNobel's 'Future-Proof Supply Chain' [View article]
    southgent1951,

    I'm actually quite aware of TINY's holding in SZYM. To be honest, it is how I first came to learn of the company prior to its IPO. That being said, I've actually become very disappointed with TINY over the past few years. While I do believe they make excellent choices in investments, I find that their SGA expenses are far too costly for a portfolio that requires many years of incubation before providing a return. As an investment vehicle, I've become less impressed with the company and would rather invest in their portfolio companies after they've been taken public. But to each their own in this regard. It's just something I've found to be more beneficial.

    Kevin
    May 9 09:53 PM | 1 Like Like |Link to Comment
  • Solazyme Becomes Part Of AkzoNobel's 'Future-Proof Supply Chain' [View article]
    Thank you for the observant eye, thunder1102. I submitted a correction. I swear I can subtract =).
    May 9 09:44 PM | 1 Like Like |Link to Comment
  • Opko's Next Acquisition? [View article]
    My mistake, good catch.
    May 6 02:46 AM | Likes Like |Link to Comment
  • Opko's Next Acquisition? [View article]
    Markus,

    Nice observations. Most of the companies Frost & company have invested in appear to be offshoots they have intentionally separated out. If I had to guess, I would imagine they might be trying to exploit the company through dilution before acquiring it altogether through OPKO once the technology is ready.... much like an incubator.

    Along with SafeStitch & PROLOR both NIMU and LTS carry the same HQ address... If you're going to make the argument for one, I guess you might as well add both of these too.
    May 6 12:31 AM | Likes Like |Link to Comment
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