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Kevin Quon  

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  • Details Emerge For Solazyme's Potential Co-Products [View article]
    Hi walterrn,

    The lawsuits are being made in the absence of a lead plaintiff and the press releases are intended to seek out angry shareholders in order to have a case. It's just another scheme for one law firm to steal shareholder money by attracting upset investors. The events cited are months old. Sadly, this happens quite often. The multiple cases arising are due to piggy-back law firms that chase ambulances. Typically, little to no impact is usually felt by the company itself in the end.

    Kevin
    Jun 26, 2015. 01:18 PM | 10 Likes Like |Link to Comment
  • Details Emerge For Solazyme's Potential Co-Products [View article]
    Hi Sergio,

    I agree with the cash burn concern. However, I'm not so sure a takeover would be the best option, and personally as an investor it would also take away my ability to directly invest in the technology. As for the board of directors, selling out at this low point given the wide range of potential would also be quite disappointing. I would very much prefer dilution over a takeover should it come to choosing between the two. But unlike many, I'm also skeptical if the outlook is that grim to necessarily consider either.

    The only real concern at this point is just time (cash) as the steel is already in the ground and the products are gaining traction. The company already has a profitable product line and could theoretically thrive on just that if it absolutely needed to... but that would come at a significant cost and lengthy restart period. Alternatively, it could sell off Algenist (perhaps a upfront lump sum + a small ongoing royalty) and likely have enough capital to thrive going forward.

    I probably have more confidence than most that the cash burn will slow over the coming year and all this concern is quite moot. However, it amazes me that people look at this and fail to see opportunity.

    Even if you were bearish or unsure on Solazyme in the near term, investors should be looking at the premiums behind the call options. Finding protection in covered calls has been quite lucrative over the past few months since the november fall (and over for the last few years really) and I would encourage those who are more risk-adverse to this speculative long-term play to consider diversifying into such protection in order to generate income while they wait.

    Above all, this is a company to invest in for 10 years at a time. Disruptive technology like this doesn't come often and it will stumble from time to time and cost a pretty penny initially. But when viewed like a drug pipeline, Solazyme's product pipeline is quite unique and impressive. It deserves to be viewed on a forward-looking valuation basis. Unfortunately, industrial biotechnology as a whole has been viewed differently on the market than medical biotech.

    At least in Solazyme's case, it's creating new products with increased functionality rather than merely replacing existing commodities. This is something that is different than the Amyris' / Gevo's / Genomatica's / etc. that are out there. This is an oversight by the investment community in my opinion and should merit additional valuation. Just my two cents on the issue.

    Kevin
    Jun 26, 2015. 12:54 PM | 15 Likes Like |Link to Comment
  • Solazyme Begins To Sell Algae Oils To Natura Cosmeticos [View article]
    As long as there is time (and lately there has been on the CC's), anyone can ask a question. Typically, no one bothers to do so and the CC's are often held during working hours. I'm sure the analysts do get first dibs, however.
    Jun 26, 2015. 12:35 PM | Likes Like |Link to Comment
  • 5 Reasons To Buy LendingClub [View article]
    txpe2003,

    I'll be honest, I'm a bit surprised of the market reaction given its initial interest that let me to believe it'll be one of those stocks that carry a premium to its valuation.

    I haven't looked at it in a while and exited quite early on, although it is something that remains in the back of my head and one I'd like to revisit eventually. I personally like the valuation a bit better now and wouldn't mind stepping in to get a few shares again soon. But given its extended downturn with no sign of resistance, I would probably just wait for a while to see where investors actually want to place it. Business-wise, my opinions stay the same.

    Kevin
    Jun 25, 2015. 12:58 AM | Likes Like |Link to Comment
  • Solazyme Begins To Sell Algae Oils To Natura Cosmeticos [View article]
    Rwratti,

    Thanks for writing and I'm sorry if I can't dedicate the amount of time your questions tend to require.

    I think you want to believe that management is taking huge stock based compensation payments right now and selling you up the river. I won't deny you of this belief but differ greatly in my own assessment. I'm no fan of executive compensation either but I'm not going to waste time debating over it.

    As for your default quote, I do believe that risk is present and should be considered in your own investment decisions. At the same time I'm not worried about it and do not believe that Solazymes access to capital has been so severely diminished that it is unable to continue for the foreseeable future. That is, if conditions were to even deteriorate to such a position. A look around this niche industry should be clearly evident of ongoing survival despite cash reserves "running out" for many of these companies years ago. It helps that one of the conditions of solazymes partnerships is their ability to contribute capital or expertise in some form. It also helps that those that are funding solazymes research now aren't exactly going to like losing all that funding for no result. It also helps that Solazymes product pipeline is blossoming (as are sales) which is usually enough for a bridge loan from large institutions. BUT again, that is if it even comes down to this... which I don't see happening yet in any case. Strategic alternatives also exist (think algenist) in the worse case.

    Is there the need for another capital raise? I think it is possible. But while few will have understood it, the twist last year was also intended to communicate to the markets that the company was going to rely less on investor $ and to be a better steward of existing reserves.

    As for maxx's estimates, Im not even sure what he wrote about as i stopped caring to peruse his many bold assertions some time ago and I refuse to let his speculative claims waste any more of my time which is why I wrote the disclaimer above. If you believe in what he wrote I advise you follow him on his articles so he doesn't have to chase after you by disrespectfully writing on mine.

    In terms of ongoing efforts to optimize downstream equipment (not extraction concerns), management has noted that it isn't concerned and that it remains a normal part of the ramp. I believe them, but to each their own.

    Falling expenses is happening largely due to declining upfront ramp expenses, labor realignment, and controlled production rates. Plans seem to be on track since the twist late last year.

    Kevin
    Jun 23, 2015. 02:58 PM | 5 Likes Like |Link to Comment
  • Solazyme Begins To Sell Algae Oils To Natura Cosmeticos [View article]
    Now you are directly advertising on my articles to gain more views? You are desperately reaching for a new low. This is just more reason why I do not welcome you and why your disrespectful presence will continue to offend me.

    Shame on you, Maxx Chatsko.
    Jun 23, 2015. 01:04 AM | 6 Likes Like |Link to Comment
  • Solazyme Begins To Sell Algae Oils To Natura Cosmeticos [View article]
    1) At least for Moema, their sugar cost is indeed mitigated through the supply agreement terms in order to provide more stability. However, yes, like anything that requires a feedstock there is the possibility of volatile costs. Further diversification into corn in another geography is one step to further stabilize that potential pitfall.

    2) Contamination always occurs on some level, but management has directly stated it does not see it as an issue and indeed all levels of scaling to date has shown it not to be an issue. As sddd mentioned, it's become a bit of a boogeyman that pple want to pin every problem to. In reality, once you understand the ideal conditions of controlling the fermentation, the threat really becomes null provided you can maintain that environment (ie. w/ the use of stable utilities of course).

    As for encapso, it is an easy way to reduce downstream costs while still introducing innovation and meeting all of the company's objectives (being more environmentally friendly, more sustainable, etc). But even this requires being made correctly in order to provide an effective product.

    I don't know where you get the idea that fermented heterotrophic algae grown in an enclosed fermentation tank is much more sensitive to infection to yeast.
    Jun 16, 2015. 10:53 PM | 4 Likes Like |Link to Comment
  • Solazyme Begins To Sell Algae Oils To Natura Cosmeticos [View article]
    Maxx Chatsko,

    As we have thoroughly and repeatedly discussed in previous sessions, your public commentary here is not welcomed. As you continue to post, you do so knowing fully well that your presence offends this contributor and that your repeated offense is done so in full disregard to the supposed professionalism you pretend to merit.

    As I have in the past, I continue to offer you a means to communicate to me directly which you continue to ignore.

    Therefore with your various attempts to hijack this forum with misleading assertions you often proclaim as facts, I will not address any statements/questions you make and will continue to remind all readers of this position.

    As you already have an outlet to publicly communicate via the Motley Fool, I ask you once again to get off your soap box here.

    Kevin
    Jun 15, 2015. 03:24 PM | 9 Likes Like |Link to Comment
  • Solazyme Begins To Sell Algae Oils To Natura Cosmeticos [View article]
    Skipping around is quite different from having always pursued each simultaneously. Just because notable partnerships develop at different times does not suggest the company abandoned one sector in order to further develop another. As seen in the Natura agreement, ongoing development has been in the works for 2 years now.
    Jun 15, 2015. 02:55 PM | 5 Likes Like |Link to Comment
  • Solazyme Begins To Sell Algae Oils To Natura Cosmeticos [View article]
    Just fyi, there are jv revenue details in the quarterly and annual reports which you can find. They just aren't consolidated to szym nor do they show on szym's income statement. Analyzing them now, however, do quite little justice to evaluating progress. Production is diff from sales and the plant was taken offline during interseason for upgrades. Throw in the poor performance to date due to intermittency, and I'm not sure what you could evaluate based on revenue figures alone.

    The agreement is likely with the sb jv not with bunge. I don't think I stated it would be with bg. Since the sb jv owns the moema facility it's utilization would likely require an agreement with sb jv. Quoting linhares further reinforces the concept.
    Jun 15, 2015. 02:50 PM | 3 Likes Like |Link to Comment
  • Solazyme Begins To Sell Algae Oils To Natura Cosmeticos [View article]
    From what I understand, consolidation will occur as Solazyme gains more operational control over the day to day functionality of the plant. Considering the original possibility for 2015, sometime in early to mid 2016 seems more likely. Just a guess, however.
    Jun 15, 2015. 09:54 AM | 2 Likes Like |Link to Comment
  • Solazyme Begins To Sell Algae Oils To Natura Cosmeticos [View article]
    UL is a long-term relationship that is still ongoing. UL extended its relationship in 2014 and remains a significant partner per filings.
    Jun 15, 2015. 08:40 AM | 4 Likes Like |Link to Comment
  • Solazyme Begins To Sell Algae Oils To Natura Cosmeticos [View article]
    Just fyi, Dave, but much of that is capital that has already been spent. http://bit.ly/1FVAy13

    Was more of an acknowledgement of $ raised and utilized for tech development
    Jun 15, 2015. 02:24 AM | 3 Likes Like |Link to Comment
  • Solazyme Begins To Sell Algae Oils To Natura Cosmeticos [View article]
    Not sure what makes you think the company is selling fuel to the military. Nothing to suggest that for a few years now, and even then it primarily served for spec qualification purposes. Fuels will come around again, and it remains but a current trickle now for market development sake. The company is quite far from even being considered a fuel play at this point and has been for some time. To suggest it is "only alive" is a rather poor portrayal of the actual operational reality and a great disservice to its budding spectrum of innovative products (including those not yet announced but are already known).
    Jun 15, 2015. 02:17 AM | 14 Likes Like |Link to Comment
  • Solazyme's AlgaVia Gains Traction As Bird Flu Leads To Possible Egg Shortage [View article]
    V123,

    To be honest if I did try those oils, I actually don't remember them. Easier to remember good tasting food.

    Yes, oils should support larger sales volume than say food ingredients.

    Kevin
    May 26, 2015. 01:42 AM | 1 Like Like |Link to Comment
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