Seeking Alpha
View as an RSS Feed

Kevin Quon  

View Kevin Quon's Comments BY TICKER:
Latest  |  Highest rated
  • Solazyme: Betting Big On The Rising Demand For Protein [View article]
    J*H*M,

    Not sure. But given the level of protein, I'm guessing it's not a co-product.

    Kevin
    Aug 20, 2013. 10:37 PM | 1 Like Like |Link to Comment
  • Solazyme: Betting Big On The Rising Demand For Protein [View article]
    Summarized responses:

    1) Very different techs. Kior/Gevo = yeast fermentation (algae actually wants to produce oil = less genetic changes & more tolerant of environmental conditions); kior & range fuels not even anywhere close to being the same tech as szym.

    2) "contamination not over" = true, but misleading. the risk of contamination is never over, however the ability to scale has been achieved at 500k-L. Very little tech risk to that point, and minor tech risk to scale up to the ~625k-L tanks at moema. Flush & redo is the simplest solution to contamination event now.... no need to really tweak process once proven to work.

    3) margins @ moema are probably going to be what mgmt expects - agreements have been structured to account for feedstock costs. Why overpromise when you capped your potential for such inclusions & secured your minimums?

    4) Rate of growth dependent on products introduced. product only beginning to go overseas & new products now coming out. first oil product just introduced. note the word - first.... tailored oils = specialty.

    5) food = the first real success starting in 2014. your opinion to believe otherwise, but mind you the companies supporting production w/ capital are BG & ADM.
    Aug 20, 2013. 10:26 PM | 6 Likes Like |Link to Comment
  • Solazyme Takes One Step Back Before Running Forward [View article]
    egofauna,

    The increase in the share count was due to the IPO. However, the convertible debt will dilute down the road so that the actual share count will change over time to reflect a higher count.

    http://seekingalpha.co...

    Last of all, dilution is a normal part of doing business as a public company. Even Painter stated he wouldn't be foolish to say they wouldn't raise equity again down the road. Personally, I find that it's easier to just imagine this company with 100 m shares outstanding and determine what you want to do then. Whether it becomes that or not is up to speculation - even then, what the company will have become at that point with the extra capital is just as much up for interpretation.

    Kevin
    Aug 20, 2013. 10:08 PM | 1 Like Like |Link to Comment
  • Solazyme Takes One Step Back Before Running Forward [View article]
    Indeed. Why compete when you can settle for win-win.
    Aug 20, 2013. 12:21 AM | Likes Like |Link to Comment
  • Solazyme: Betting Big On The Rising Demand For Protein [View article]
    cyrano13,

    This article may help in understanding the business strategy: http://bit.ly/1amboxa

    The costs metrics are already feasible as is the sustainability factor of it. After all, we already use lower cost food to make more expensive food. Moving down the cost ladder into something like fuels is where that question becomes more relevant. Nevertheless, there is a wide range of new techs that should allow for even bulk fuels to be made feasible down the road. I continue to refer to Proterro, a promising company on which SZYM's Harrison Dillon now serves as an advisor, when it comes to thinking about the possibilities. Big picture, Converting waste C02 into sustainable foods is a very possible future. Proterro is on course to reduce sugar costs by well more than half...

    Kevin
    Aug 19, 2013. 10:07 PM | Likes Like |Link to Comment
  • Solazyme: Betting Big On The Rising Demand For Protein [View article]
    I can imagine that happening already... although likely in your local grocery store first. All in due time.
    Aug 19, 2013. 10:00 PM | Likes Like |Link to Comment
  • Solazyme: Betting Big On The Rising Demand For Protein [View article]
    It's been a waiting game for the last 2 years. =) Not unexpected, but not fun to endure. Skeptics abound.
    Aug 19, 2013. 09:59 PM | 1 Like Like |Link to Comment
  • Solazyme: Betting Big On The Rising Demand For Protein [View article]
    Geosteam,

    Remember that whey is king for protein due to pricing. The veggie proteins are likely priced higher, including szym's. All else considered remember that szym already signed w/ twinlabs, so clearly they can compete. Heck, vitasprings is already selling the veggie protein for $23.51 vs. the sticker price of $39.99. The fact that management reaffirmed again on the CC its margins (albeit it did not do so for the production coming out of peoria) for nutritionals means that they're setting the bar for themselves. Yes, i think szym can be competitive at this price.

    Kevin
    Aug 19, 2013. 09:58 PM | Likes Like |Link to Comment
  • Solazyme: Betting Big On The Rising Demand For Protein [View article]
    I disagree. Target asp floor is 2k/mt, nutritionals worth more than oils, & R&D wasn't included. I don't have the energy to respond to people convinced of failure. So I'll leave it at that.
    Aug 19, 2013. 09:53 PM | 2 Likes Like |Link to Comment
  • Solazyme Takes One Step Back Before Running Forward [View article]
    egofauna,

    First off, I don't know if GE or Honeywell would really be interested in this technology. It's your agroscience companies that would really be wanting to be on board (ie. Monsanto, Dow, etc).

    But to keep it short & sweet, when I talked to Wolfson about this point last year, he basically said this: Yes, there are other companies looking into this, but solazyme has spent more time and more money than anyone else out there. More so, those who would be interested in this tech are actually becoming partners. Last of all, if anyone was able to come up w/ a biological tool kit as effective or a strain as productive, would they even be able to use them to create the same kinds of products in the end due to szym's IP?

    -kevin
    Aug 18, 2013. 12:48 PM | 2 Likes Like |Link to Comment
  • BioAmber: Is It Too Early To Invest In This Sustainable Company? [View article]
    Maxxxx li,

    It's good to see that Gevo's started back up its Luverne facility and seems to be progressing on the technological front. It's also positive that the company seems to be winning on the IP-standoff. The market's deteriorating valuation of the company is also overblown given the potential that is not being respected here.

    However, clearly the company's balance sheet could use an upgrade. It's not hard to see that the company will need more capital down the road. This problem is only compounded by the poor valuation that makes raising equity difficult.

    Last of all, I'm not a big fan of the margins of the past, and likely going forward. You're talking about needing a lot of capital in order to really get the ball moving here. And that means more facilities and more time. All said, I'm not a fan of Gevo as an investment.... even if its more of what the world actually needs. The company seems to be getting its wheels turning again, but the return on investment seems marginal at best.

    Barring a change in sentiment to reverse the multiple that investors are willing to place on these companies, there's not really much to count on. Personally, I rather invest in companies who can create their own unique advantages, remain adequately financed, and face limited competition.

    Kevin

    (Go, Bruins!)
    Aug 15, 2013. 10:18 PM | Likes Like |Link to Comment
  • Solazyme Takes One Step Back Before Running Forward [View article]
    centerroad,

    Actually, I'll concede that one & take a shot to the gut. I looked up 2013 rather than 2012 in looking that up. Naturally I don't agree with the rest, but everyone's entitled to their opinion.

    Kevin
    Aug 13, 2013. 10:11 PM | 1 Like Like |Link to Comment
  • Solazyme Takes One Step Back Before Running Forward [View article]
    centerroad,

    Based on your prior comment, you were skeptical when SZYM was trading a little over $7 when most people noticed it was clearly undervalued. There's more going on than what you just listed. That's all I'm going to say about that.

    Kevin
    Aug 12, 2013. 10:02 PM | 3 Likes Like |Link to Comment
  • Solazyme Takes One Step Back Before Running Forward [View article]
    futuretrade, refer to my direct msg.
    Aug 11, 2013. 05:24 PM | Likes Like |Link to Comment
  • Solazyme Takes One Step Back Before Running Forward [View article]
    One additional factor to consider would be that a good number of the SRN team was probably already based in San Francisco. It might have also been more worthwhile for them to stay where they are than to have to relocate. I just though it was worth mentioning before we read too much into it at the same time. It's clearly nice to have the talent of those already familiar with the product line.
    Aug 10, 2013. 02:52 PM | Likes Like |Link to Comment
COMMENTS STATS
1,334 Comments
2,102 Likes