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Kevin Quon

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  • Solazyme: The Making Of A Specialty Oil Giant [View article]
    User123962,

    No I wasn't at that conference but I did see the same link you're looking at. The new information there was the announcement of a future relationship with Propel (which is likely Propel Fuels).

    I think its important to remember that Wolfson emphasized they're going after the commercial fleet. That being the case, Propel seems more like a way to express to the general public that SZYM is everywhere in their backyard w/o being committed to the consumer. The fleet market always made more sense anyways as trucks use diesel a lot more and have much more use for biodiesel. These trucks also tend to be on set commercial paths (likely near same stations) & can benefit from the other features of szym biodiesel as they push their vehicles to different extremes.

    The interesting about propel is that its a high growth company... and the visions align well w/ the company. Although they only have 28 station partners now, within 2 years they expect a roll out of 200 station partners. For my primary job, I actually had to go to one of these stations down here in SoCal ironically.

    I guess the other new piece of info is that SZYM is exploring a california-based cellulosic fuel opportunity. Not much detail there, but its interesting to see that the co is looking towards addressing part of the largest market w/ a local non-food source.
    Nov 4 11:57 AM | 1 Like Like |Link to Comment
  • Solazyme: The Making Of A Specialty Oil Giant [View article]
    Lol, if that was really the case, I guess that's their right. I'm not sure what tales I'm supposedly saying though...

    As for destroying energy industries & what not, I never asserted that. I am saying though that they're able to effectively source oils (mind you, all the derived variations of petroleum, plants, & animal fats) at a relatively set cost. Regardless of whether oil prices actually go up or not (although i think most pple actually believe they'll go up), SZYM can introduce a stable source of whatever is needed. With minimal development time, they can provide the hard-to-find (and more expensive) oils or derived chemicals, and most importantly they give end market diversification options to feedstock commodity suppliers.

    If anything, SZYM isn't going to destroy industries.... but it can enhance them. Their control is already introducing options never before seen. No polyunsaturates? Never been possible before. Seed plants can only be modified so much. Modify the seed in such a way you prohibit its growth capability & thats your limit. If you can become the sole source of new oils, you may not have destroyed an industry but become a new one altogether.


    Btw, what about the tech doesn't make sense? A lot of the details are in the patents themselves. As for sounding too good to be true, it's already proven tech. We're past the proving the tech phase, we're in the scaling up production phase.
    Nov 4 11:46 AM | 1 Like Like |Link to Comment
  • Solazyme: The Making Of A Specialty Oil Giant [View article]
    It's a little hard to call that competition. Not even in the same field really. Ethanol & oil are worlds apart, especially for tackling the higher margin industries. If anything, these aussie bro's face greater competition from companies like coskata or enerkem.

    As for the feedstock risk, this remains true. However, it doesn't take much research to show that sugar is likely to fall in the future thanks to the massive effort to create low cost sugars for the biofuel industry. codexis is an easy name to track. But even a company such as proterro, who's been mentioned before, can have a huge impact in the future. Even w/o these alternative sugar price reducers, sugar's on track to fall over the coming decade according to studies.
    Nov 4 02:09 AM | 1 Like Like |Link to Comment
  • Solazyme: The Making Of A Specialty Oil Giant [View article]
    I am more than glad to hold them accountable to their innovative platform, Ivan. That, after all, is just beginning to take root: http://bit.ly/SoSGIt

    patents:
    http://1.usa.gov/TCdf7m

    patent applications:
    http://1.usa.gov/SoSGIx

    Thanks for reminding us of the hard journey they took to take this science from the garage (literally) into the destroyers, airline jets, cookies, & various other industrial machines used in the process. The gig is up. Those guys really conned us....

    I'm just glad this plane didn't crash: http://bit.ly/SoTaye

    Man, talk about a coincidence. It was a scam all along & yet that flight STILL flew on your supposed peanut oil as you've been claiming in your previous comments. *whew* society really dodged a bullet there.
    Nov 3 09:21 PM | 2 Likes Like |Link to Comment
  • Solazyme: The Making Of A Specialty Oil Giant [View article]
    I'm not sure if demand is as much an issue as supply is for the time being. Bringing capacity online is what the company's really working on doing, selling the product doesn't appear to be the issue as much.

    lol, and dont worry. the co's got a following amongst college students as seen here: http://bit.ly/Qes5lk

    perhaps to our dismay. no offense, if they're reading this.
    Nov 3 09:13 PM | 3 Likes Like |Link to Comment
  • Solazyme: The Making Of A Specialty Oil Giant [View article]
    Michael,

    It really depends on what you consider actual production. They've been producing quantities of various levels for some time (albeit w/ contract manufacturers & small tanks). Peoria is the first commercial-scale facility actually owned by SZYM and made fit for purpose. I'm sure they're working out the kinks & bringing it closer to full production as we speak, but its important to remember how small this facility really is the big view of things. Peoria has 1.8k MT of capacity.... Bunge will have 100k MT and is expected to be fully constructed by the end of 2013 (but likely not operating at max capacity until well into 2014) if i recall correctly. I wouldn't dismiss the possibility of some snafus & delays along the way, but it likely serves as a rough guideline.

    Phase 1 of SRN's plants is already up & is hosting a mere 300MT of capacity for sampling to prospective customers. The phase 2 SRN 5k MT site is upgrading the Phase 1 site (i believe) should be up & running by Q2 2013. Upon phase 2's completion, a phase 3 decision will be announced to bring another 50k MT online. timeline yet to be announced.

    I'm not sure if the company is still using contract manufacturing at all, but I believe they've stopped & switched over to Peoria.

    Net product revenues amounted to $4.07 mil last quarter with a gross profit of 67%. These are the revenues you want to really be looking at rather than the R&D revenues that are derived from awards & what not. Especially as capacity comes online, these are the revenues that will reflect the future business. Remem that for now the co's primary product is algenist. I'm curious to see a better breakdown of the product revenues personally.

    Kevin
    Nov 3 09:05 PM | 2 Likes Like |Link to Comment
  • Solazyme: The Making Of A Specialty Oil Giant [View article]
    Your hope is my own, friend. Until then, I wish you the best. I appreciate your readership.
    Nov 3 08:23 PM | Likes Like |Link to Comment
  • Solazyme: The Making Of A Specialty Oil Giant [View article]
    dharmi,

    I think it's presumptuous to believe that Big Money has to be more informed. Remember that the those with a heavy hand invest very differently than people like you and me. I won't pretend I know what exactly is going on, but I do personally believe that those with the ability to move stock prices aren't exactly out to understand the difference between companies they perceive to be associated or in a similar peer group. You see KIOR, GEVO, AMRS, CDXS, etc falter, and after a while, you believe the valuation of any company in a similar field should be taken in the same light.... especially if their valuation is based on growth potential. You begin to think that this type of company that has a cash burn w/ little up its sleeves to change that situation in the short-term can't possibly be worth as much as it is. Why should it when its buddies are going down the toilet? With little news momentum, ongoing insider selling (albeit pre-planned & in small denominations), & general market uncertainty, the call goes out for 'risk off & money out'. Perpetual cycle begin.

    I think raymond james's latest outperform reiteration serves to address the most likely ongoing concerns: http://bit.ly/SjUkL4

    Given the general complexity of this company's business model & tech and the abundance of associated negative sentiment that its operating through (on several fronts), I somehow find it very difficult to believe that there is full transparency by Big Money to navigate their risk management with a full understanding of the company's innate advantages. They might not even care as much to be honest if they have more of a trader mentality. But people like me & you do... because that's how we invest for the long-term.

    I think it's clear that the analysts have been projecting for some time that the company is undervalued to little avail. There is one analyst who walks contrary to the pack and his underlying rationale lies in a "lack of capacity visibility, unclear production economics, and loss of negotiating leverage w/ downstream partners"..... all factors which remain subjective or speculative in themselves. Put another way, he seems to be stating that the company's too high a risk to correctly value. Ironic that the current price now resides even under his target price.

    To be honest about it all, I don't know why the company's stock is moving as it is... but there's been little reason to suggest why either. I would hope that everyone who reads my articles fully understands that this company has always been a volatile investment and will continue to be until earnings accountability comes into play. Invest accordingly. Clearly, I find it worth the risk and ideal to add to my position as it comes down, but others won't. And who's to say who'll be right in the end.
    Nov 3 08:16 PM | 2 Likes Like |Link to Comment
  • Solazyme: The Making Of A Specialty Oil Giant [View article]
    Appreciate the support, Tom. We'll see how this plays out, but the future looks positive.
    Nov 3 07:41 PM | Likes Like |Link to Comment
  • Investors Neglect Solazyme's Leadership In Industrial Biotechnology [View article]
    The author does have a position, and discloses it every time he writes an article by stating that he is long SZYM in the disclosure statement at the top of the article.
    Nov 3 01:55 PM | 1 Like Like |Link to Comment
  • Investors Neglect Solazyme's Leadership In Industrial Biotechnology [View article]
    I still think its funny that you think hiring more employees is a negative attribute.
    Nov 2 04:43 PM | 2 Likes Like |Link to Comment
  • Investors Neglect Solazyme's Leadership In Industrial Biotechnology [View article]
    read the label. give it up, buddy.

    " ....Algae Exopolysaccharides, Tetrapeptide-21, Beta-Glucan, Algae Extract..."
    Nov 2 03:07 PM | 1 Like Like |Link to Comment
  • Solazyme: In The Wrong Place At The Wrong Time [View article]
    I think you're really missing out on the point here. You're so caught up on biofuel and what you read about concerning non-related algae companies, you're neglecting the company is progressing on triglyceride oil production. I'll leave it at that as your mind seems set rather than understanding whats really going on here.
    Nov 1 05:08 PM | 1 Like Like |Link to Comment
  • Solazyme: In The Wrong Place At The Wrong Time [View article]
    Those same analysts also have an average target price of $17.71 as of 11/1/12......
    (http://bit.ly/Q9jOiF)

    None of this addresses the fact your researcher entirely missed the fundamental business operations of the company (among several other key points). This company does not make oil from animal fats. Articles like this bring down the quality of Seeking Alpha, and I would highly advise that you to get your facts straight before making assertions as to what investors should do.

    Here's your direct quote: "Its business model of producing oil through transformation of food, plants and animal fats is a matter of concern for investors." This is just disappointing.
    Nov 1 03:34 PM | 5 Likes Like |Link to Comment
  • Solazyme: In The Wrong Place At The Wrong Time [View article]
    azblackbird,

    I'm not privy to inside information. Many of these questions pertain to non-disclosed information as you yourself stated.

    However, from what I understand, Solazyme's feedstock in the present is carbon primarily from sugar cane. Instead of redeveloping infrastructure, they're trying to use whats readily available for ease of integration. They are able to use a variety of carbohydrate sources however - everything from corn-based dextrose to cellulosic sources such as a forest residue. Of course, we're talking about using sugars to feed a heterotrophic algae closed-circuit fermentation process in case that wasn't clear (which it wasn't according to the article we're writing on)

    Questions 2-6 are pretty much proprietary information and aren't fully disclosed. While they are able to lead to unkind implications, the the fact remains that none of these issues have thus far impacted the company's progress & therefore it is reasonable to presume that it hasn't really been an issue of concern.

    With a disclosed 30% yield at time of IPO, you're looking at roughly 7350 lb. (unless i can't do math) of sugar per metric ton of oil btw. SZYM is able to get sugar cheaper than market price, and the company has been strongly advocating for the fact that margins matter more so than cost alone (and this obviously makes sense when you think about it). Margins ahve thus far been good.

    And no, they don't grow their own feedstock (sugar). JV partners have been supplying that. All that said, I'm not here to answer q's on someone elses article. Please msg me independently if you want to reach me or comment on one of my own articles. Thnx.

    Kevin
    Nov 1 03:26 AM | 3 Likes Like |Link to Comment
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