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Kevin Quon  

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  • Investors Begin To Differentiate Solazyme's Unique Technology [View article]
    I appreciate your readership, chudzikb!
    Jun 4, 2013. 09:01 PM | Likes Like |Link to Comment
  • Investors Begin To Differentiate Solazyme's Unique Technology [View article]
    I've been in your shoes. I really have. But then I did a lot more research into what was coming out. Undoubtedly, there are a lot of failures still circulating out there, but I must tell you you're barking up the wrong tree if you think this is going to be one of them. Wish you the best.
    Jun 4, 2013. 09:00 PM | 2 Likes Like |Link to Comment
  • Investors Begin To Differentiate Solazyme's Unique Technology [View article]
    Does this mean you're concerned about petroleum?
    Jun 4, 2013. 08:58 PM | 2 Likes Like |Link to Comment
  • Investors Begin To Differentiate Solazyme's Unique Technology [View article]
    Out of your 172 comments, you've dedicated every one to my articles. Thank you for your time and for keeping my page views up.
    Jun 4, 2013. 08:57 PM | 3 Likes Like |Link to Comment
  • Investors Begin To Differentiate Solazyme's Unique Technology [View article]
    Durwood Dugger,

    Thank you for reading. Based on your comment and your most recent article, I'm assuming that you have a healthy skepticism to the outlook of this industry. While you are right that I left out production cost metrics, I believe these will show their face over the next two years. That being said, while you might therefore conclude these results are disproving, I would actually contend that they have yet been given a chance.

    You refer to Solazyme's growing losses and yet seem unaware of how they've actually been derived. Indeed an analysis of product revenues shows that the company is growing just fine and has actually been supporting a healthy gross margin around 60-70%. The reason for the losses has been due to inconsistent research & development and a significant increase in staff & operational expenses as the company ramps up its operations in preparation for its next stage.

    As for the market demand, I still wonder why people continue to question this at all. The company is adding value to existing oil markets. If anything, their products will be chosen first over the existing market. As the CFO said in the latest interview, the base scenario (ie worst case scenario) is that SZYM is going to strictly replace existing oil markets. Given the quality of partnerships coming in, I would imagine that unless you deny the existence of a plant-oil market, this shouldn't even be a concern.

    Yet for all these thoughts, there are values not made clear for you & me. We're talking about freeing up capital, reducing logistics expenses, reducing time to market, increasing quality & reliability, etc etc. These are the thoughts that management has been saying their partners are excited about. Its funny that investors are concerned about whether the value is there, and the partners are excited about the value outsiders can't even calculate.

    Imagine having to operate your company's business around a single timed purchase from Asia every year. You have to have enough capital, predict if the order will be in order, have enough capital, find somewhere to put stuff & store it, etc etc. Now imagine being given the chance to make up to 52 purchases from the store next door. That's the difference between the existing plant harvest cycle and Solazyme's new business model.

    However, if you want straight costs. Recall that the S-1 stated the company believed in 2011 they could produce oils @ <$1000/MT when in the proper facility. Sugar costs have actually fallen since then: http://bit.ly/14u0hdK


    Kevin
    Jun 4, 2013. 08:53 PM | 3 Likes Like |Link to Comment
  • Solazyme Provides An Alternative To The Oilseed Industry [View article]
    Alan,

    You failed to do your research. Try again.

    Kevin
    May 27, 2013. 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, 2013. 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, 2013. 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, 2013. 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, 2013. 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, 2013. 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, 2013. 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, 2013. 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, 2013. 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, 2013. 10:15 PM | 2 Likes Like |Link to Comment
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