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Kevin Quon

 
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  • Solazyme: Taking Advantage Of Healthy Food Trends And The Need For Innovation [View article]
    Encapso is expected to make a sizeable impact in the drilling industry - at least those are management's ambitions based on the results seen. However bear in mind that adoption cycles vary from industry to industry. I personally wouldn't expect large agreements for several months and maybe even years for the big four.

    Also, algenist isn't in ulta yet. That deal is expected to fully fleshed out later in the year per the last cc.
    Sep 15, 2014. 07:02 PM | Likes Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    I'm just going to copy & paste the following from the Form 10-Q in order to give some context of the cost shifting:

    "Beginning in 2014, inventories included manufacturing and related third party contract costs associated with the production
    of our intermediate/ingredient products that met applicable regulatory requirements. Prior to our products' meeting applicable regulatory
    requirements, the manufacturing and related production costs of such products are charged to research and development expenses. "

    -----------------
    Few thoughts:

    1) Its likely normal for inventories to increase during this time period as the plant gears up for a ramp.

    2) I wouldn't go as far as to consider as deferred revenue as the cost of the parts do not necessarily equate to the sales value of the finished good (which I would expect to carry more value).

    3) Sorry, until operations normalize at a steady rate, its a bit difficult to know whats healthy & what isn't.
    Sep 11, 2014. 10:20 PM | 2 Likes Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    mikestesla,

    Thanks! And thanks for pointing me to that website. It's a rather interesting compilation/database. Not the most reliable, but interesting. ;)

    Kevin
    Sep 10, 2014. 10:28 PM | Likes Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    @curreyr,

    Good move for us, but bad move for you. Hope you have a money tree in the backyard. :)
    Sep 6, 2014. 12:59 PM | 1 Like Like |Link to Comment
  • Highlights From Solazyme's Q2 2014 Conference Call [View article]
    mikestesla,

    That might be the case, but its a very rough correlation at best. Over the past few weeks your thoughts appears to have been true:
    (http://bit.ly/1xih1Zg)

    There seems to be plenty of other factors involved here though.
    Sep 4, 2014. 11:12 PM | 2 Likes Like |Link to Comment
  • Highlights From Solazyme's Q2 2014 Conference Call [View article]
    txpe2003,

    If stock prices and company operations always aligned, companies like tesla wouldn't be where they are today. Unfortunately, SZYM's caught the bad wind of a short trading frenzy. The short interest has increased nearly 200% since last year (http://bit.ly/LRG2QN). Wall Street greed along with a lack of announced catalysts and profitability have made for a less than desirable combination.

    Company progress continues even if the stock price dances. If you are not willing to patiently endure for the long-term, you might want to cut your losses and return when they are profitable. If you're wanting to take advantage of the reduced cost, I often pair my buys with long-term covered calls set at various intervals. I've found the option premiums to be a swell buffer from the volatile action we so often see.

    Best,
    Kevin
    Sep 4, 2014. 10:36 PM | 2 Likes Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    There's an advantage of having brands exist on their own too you know. It leaves room to open new brands as well. How many Algenists & Everdeeps do you think Solazyme could open up if they all say "brought to you by Solazyme" on every bottle of each. Allowing each brand to flourish as a separate entity allows for a segregation of market performance (one can't hurt the other) while also allowing for increased penetration.

    There was a book I read a while back that was talking about a large cosmetic company that worked upon this very concept. They own several brands that compete among themselves but consumers don't know that they're all owned by the same company.
    Aug 29, 2014. 04:14 PM | 1 Like Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    I don't think he's allowed to talk about that publicly... unless it does. :)
    Aug 29, 2014. 02:56 PM | Likes Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    Rwratti,

    My point is that as investors we're coming in from the wrong standpoint. We're not marketing advisors. I don't know what the data is that says x% of people looking for $100 cream would be turned off by the rough "solazyme" name compared to the y% of people turned on by the pleasant sounding "San Francisco" terminology. As investors it makes sense to smack the Solazyme name onto everything, but consumers want to often be able to identify with products or feel like they're getting something of quality.

    Like I said above, the marketing of Algenist has been stellar IMO - why mess with it? It's not like Algenist consumers are suddenly going to go buy everything Solazyme related.... especially considering the lack of SZYM products out there apart from Algenist.

    So for me to go to management & say "why aren't you doing this" or "why aren't you doing that" is rather counter-productive and outside of my role. I find it more ideal to just watch whats going on & talk about it.

    Best,
    Kevin
    Aug 29, 2014. 02:21 PM | 6 Likes Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    I rather not. Despite your opinion on the matter, I find it best to just leave the marketing to them - for better or worst. Last I checked, its working quite well when it comes to Algenist.
    Aug 29, 2014. 12:55 PM | 2 Likes Like |Link to Comment
  • What A Successful Moema Launch Means For Solazyme [View article]
    "Here's the kind of in-depth look I was hoping for."

    You should probably look there then.
    Aug 27, 2014. 10:27 PM | 3 Likes Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    Rwratti,

    We compete with palm oil for a good number of markets, but not all markets - although it is true that most oilseed markets will be correlated to palm oil markets. As the highest yielding oilseed crop and producer of some of the most mid-chain oils, palm oil is very useful & inexpensive.

    What you should keep in mind, however, is that we're not trying to replace palm oil directly. Refer back to my article (http://seekingalpha.co...) for this comment by Rakitsky:

    "A lot of people ask me: 'Can you make a palm oil? Can you make a soy oil? Can you make a palm kernel oil?" And the answer is 'Yes, we can do all that'. But why would we? (To do so would be missing) our unique differential value in terms of creating compositions that have enhanced performance......"


    The point is that we're making oils that can replace higher value derivatives from that oil or other oils. Does a customer only want the 8% c8-c10 coming out of pko? We have an oil that can provide more than 60% of that. Think they'll pay more? A similar story goes w/ lauric oils.

    How about performance? Does the customer want the highest oleic oil out there without having to use antioxidants? We have an oil that outperforms almost everything out there even before considering the use of antioxidant packages. Think they'll pay more?

    A similar story goes w/ solid fat curve opportunities. JW previously asked me "how many oils can you name where theres a large enough supply of those oils, where they're produced efficiently enough in agriculture that they cost less than... you know... lets say $4000 - $5000/ton?" The idea being that there were probably less than a dozen out there (palm, pko, soy, rape/canola, tallow/lard, sunflower, etc...). Each of these have different solid fat curves useful for products, but the its the oils outside of this list that might have the certain curves ideal for many products. Because the oils we make relatively fall under the same price range you're talking about a huge opportunity in the structural fats market alone by being able to increase those opportunities with an affordable & customizable oil profile.

    So in short, are you missing something? No, those articles are both true. But you got to remember that palm oil isn't the oil or component we're necessarily replacing/supplementing. Personal care companies might be using palm oil to make soaps, but what they might really want is a particular fraction of that oil. Even before considering the savings from improved logistics, this is where a part of the enhanced value for SZYM's oils come into play.

    -Kevin
    Aug 22, 2014. 01:24 PM | 10 Likes Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    Sorry, it appears I overlooked that. It was supposed to be this article (for those who haven't been following along) :

    http://seekingalpha.co...
    Aug 20, 2014. 10:57 PM | Likes Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    Mykie,

    The very limited sales from Clinton are starting to appear on the financials. Look under product revenues & backout the stated revenue from Solazyme Consumer Products (aka Algenist). Last quarter this was about $3 million out of Clinton. In Q1 this was about $2.4 million out of Clinton.

    Three things to remember:
    1) its very early and the ramp hasn't accelerated yet (middle of s-curve).
    2) there is a timing delay between production and sales, some product being sold this q is still coming from last year.
    3) moema sales won't be accounted for on the financials until 2015 after the consolidation. until then, the loss from moema will be presented on the financials as part of the accounting for the JV.

    As to your first Q, sorry I do not know and every relationship is different. Without details from szym, we just wont know.

    Best,
    Kevin
    Aug 20, 2014. 10:55 PM | 2 Likes Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    Reference to RSPO's concept of sustainable palm oil: http://bit.ly/1liyUSX

    It's hard to consider this an alternative to SZYM's product... rather its a whitewashed term hoping to prevent future forest destruction with existing palm plantations. The fact remains that alternatives to palm are needed for growing demand. This is why Ecover had its internal debate & still decided to go with SZYM thereby freeing itself from the palm dilemma. Sadly, there really aren't too many options out there given the oil's structure & cost profile... but this is good for SZYM's algal oil at least.
    Aug 20, 2014. 10:47 PM | 2 Likes Like |Link to Comment
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