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Kevin Quon

 
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  • Did Solazyme Just Patent A Treatment For Diabetes? [View article]
    Mykie,

    There are at least 10 clients even in this pre - ramped phase. Demand is not going to be the issue given the size of the markets. In the absolute worst case scenario szym can easily have fuels fill the void. Right now fuels are being addressed regardless in order to establish future markets, but fuels have commodity - like demand. If for whatever reason demand is lagging, it will be very easy to mass produce fuels.

    This question of demand is really one that was addressed from 2011 to 2013 imo. People fear the worst when the entire capacity isn't booked in advance, but it's important to remember that it works to SZYM's advantage to have some capacity open to meet changing demand on the fly. That's an advantage of szym over most producers.

    Kevin
    Jun 17 02:42 AM | 7 Likes Like |Link to Comment
  • Did Solazyme Just Patent A Treatment For Diabetes? [View article]
    Patenting the specific use of chlorella protothecoides biomass that is grown heterotrophically with at least 15% oil dry weight which can be used in food compositions composing of 1-20% of the weight or calories is a little bit more specific of an invention than patenting burnt bread. It wouldn't even be the right color to suggest it was a "green powder" like other variations of the chlorella genus.

    Maybe you should read through the patent first? There's quite a few details I left out in order to keep the article flow and attention of the reader. Just a suggestion. No offense intended.
    Jun 16 07:16 PM | 4 Likes Like |Link to Comment
  • Did Solazyme Just Patent A Treatment For Diabetes? [View article]
    http://bit.ly/1p9JcDC

    It's worth mentioning that your understanding of chlorella might not necessarily be applicable in connection to the algae referenced in this article. As shown in the referenced link above SZYM's algae is more akin to the yellow chlorella shown in the picture and therefore likely lacks much of the chlorophyll your description emphasizes. Chlorella is just an algae genus and therefore has many variations.

    Not doubting much of what you said, but just wanted to throw that in there.
    Jun 16 03:42 PM | 2 Likes Like |Link to Comment
  • Did Solazyme Just Patent A Treatment For Diabetes? [View article]
    Indeed, I also believe the prebiotic attribute might be a bit underappreciated. As I inferred in the article the implications might be more useful from a marketing standpoint in the near future.
    Jun 16 03:15 PM | 3 Likes Like |Link to Comment
  • Did Solazyme Just Patent A Treatment For Diabetes? [View article]
    I do not know what (if any) relationship the university of Manitoba has with solazyme. I can say that the inventors of this particular patent were not the usual suspects perse. It's possible they work for the university as well. I'm sure this could be investigated further but I don't think it would lead to anything too surprising or useful.
    Jun 16 03:08 PM | Likes Like |Link to Comment
  • Did Solazyme Just Patent A Treatment For Diabetes? [View article]
    You probably won't know when they hit the market. For instance small amounts of SZYM's algal protein is in twin labs clean series veggie and raw meal from garden of life. But by and large the company is not branding it's own products but playing the role as an ingredient supplier. I believe algavia might be an attempt to create a product brand, but even this might be wrong. In any case, it's too early to expect large product quantities out of szym given the capacity restraint that is now slowly being lifted. Roquette should have the initial advantage with its brand of algility. 4000-5000 mt capacity is a decent start. Also no I don't know how the arbitration is going but I expect the market to be many many times bigger than this with enough room for many more players than szym and roquette.
    Jun 16 02:32 PM | 1 Like Like |Link to Comment
  • Did Solazyme Just Patent A Treatment For Diabetes? [View article]
    I emphatically agree with Doewap here in his statement.
    Jun 16 02:15 PM | 3 Likes Like |Link to Comment
  • Did Solazyme Just Patent A Treatment For Diabetes? [View article]
    Encapso is an encapsulated oil product. More specifically it seems as if it is an encapsulated designer oil product with increased functionality engineered in. Algavia is the company's brand of natural algae, which is a whole algal cell product. Both are essentially the same thing except one is wild and one is genetically engineered. The relevance to this article is that the patent seems like it can apply to both lines as the patent is in regards to algal biomass from chlorella protothecoides in general. The more impressive feat to me is that it doesn't have to be just a genetically engineered product that qualifies.
    Jun 16 02:00 PM | 6 Likes Like |Link to Comment
  • Did Solazyme Just Patent A Treatment For Diabetes? [View article]
    It sounds more like a mitigating effect rather than an outright cure. Combined with ice cream and I personally doubt it'll do more than make ice cream a little bit healthier. Lol. But hey, I'll raise a glass to wishful thinking!
    Jun 16 11:10 AM | 4 Likes Like |Link to Comment
  • Did Solazyme Just Patent A Treatment For Diabetes? [View article]
    Maxx,

    I see no reasons why it can't be both Algavia and Encapso depending on function. I rather not assert how they are going to market this other than to show that it could qualify for algavia. We have agreed on very little and I make no speculative assumptions as to what estimates will be. I am merely citing information. This will be my only comment to you as our prior conversations suggest that your motives for being here tend to be less than pure.

    Kevin
    Jun 16 11:04 AM | 10 Likes Like |Link to Comment
  • What A Successful Moema Launch Means For Solazyme [View article]
    Appreciate the reference, etienne79.
    Jun 13 03:19 PM | 1 Like Like |Link to Comment
  • What A Successful Moema Launch Means For Solazyme [View article]
    Triptolemus,

    You demand quite a bit from every article. This article's purpose was not to talk about costs as I've talked about this in past articles. It takes 3 MT of sugars to make 1 MT of oil. The company is getting sugars (possibly lower-cost sugar juice) at lower than market price & already has provisions in place to cover swings in sugar costs. Consdering the target ASP's it is clear that the model will be profitable once the plants are at nameplate capacity. The development of lower-cost, next-gen sugars should be able to significantly reduce costs further.

    Kevin

    P.S. I'm not here to debate, argue, or be criticized as your other comment on my other article suggests you are looking to do. So this will be my only reply.
    Jun 4 02:27 PM | 11 Likes Like |Link to Comment
  • What A Successful Moema Launch Means For Solazyme [View article]
    Run Rickey,

    Some of the latest target ASPs were snagged by this guy on Twitter (they were taken from the GS roadshow presentation back in March which is no longer available):
    http://bit.ly/1jPGY5L
    http://bit.ly/1gXRBU8

    You can also scan through the company's PDF presentations for some additional information. I tend to just save them as they get taken down over a year or so. On a side note, it's interesting to see that some of the ASP's appear to have crept up a little bit (ie. High oleics have gone from $1800-$3000 for Q4 2012 to $2000-3000+ per the image linked above).

    The mix of product is anyone's guess, but the rapid production of Encapso right out of the gate for Moema should be suggestive as to what they'll likely to trying to focus on in the near-term (....especially since that's probably not selling in Latin America yet and likely has to be shipped up to North America). All we know is that 2 types of oleics (likely high oleic & HSHO), 1 mid-chain & Encapso is being produced right now out of Clinton.

    I don't know how many batches fail to meet end point, but from what I understand they have not ever seen contamination to be a hindering issue. Per my last visit, this isn't to say they've never had contamination (as merely touching the side of the tank will do that), but that the company hasn't had any reason to view it as a potential issue. Even if a run needed to be stopped early, they typically still get oil (ie. like 70% of what was expected). Consistency of product output has also not been an issue.

    Kevin


    Jun 3 10:42 PM | 3 Likes Like |Link to Comment
  • What A Successful Moema Launch Means For Solazyme [View article]
    Kitesurfer1962,

    Quite honestly, profitability isn't a metric you want to be using. Becoming cash flow positive is more ideal because it is highly likely that the company will continue to pour cash into expanding manufacturing capacity (think Amazon's lack of profitability as the company consistently invested into ramping up revenue).

    That said, these two plants should suffice. As a matter of fact, Moema itself should suffice. Clinton should help to also serve as some insurance (or redundancy) in order to guarantee that orders get filled but it too will be the most ideal spot for expansion.

    The time frame to nameplate is 12-18 months for each facility although it sounds like this is a conservative estimate on the company's part. From everything that's transpired thus far, it sounds like Clinton might be able to do more of the 12-month time frame whereas I'd expect more of the 18 months for Moema. Therefore I'd expect mid-to-late 2015 to be the time we become cash flow positive. Considering the rather high ASP's for AlgaVia ($8000-12000+ per MT), I am curious if the company can bring that timeframe forward though. The same goes for Encapso. Time will tell.

    Kevin
    Jun 2 10:39 PM | 6 Likes Like |Link to Comment
  • Why Solazyme's High-Oleic Oils Are Needed Now [View article]
    Re-evaluate "professional and reasonable."


    http://seekingalpha.co...

    "Kevin,

    Thanks for the clarification. I don't see why I cannot comment here if I do so in a professional and reasonable manner.

    Maxx Chatsko"
    Jun 2 10:19 PM | Likes Like |Link to Comment
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