Seeking Alpha
View as an RSS Feed

Kevin Quon  

View Kevin Quon's Comments BY TICKER:
Latest  |  Highest rated
  • Solazyme Gains Momentum In Food Ingredients [View article]

    WAF/WAP is only being produced out of Peoria right now as additional downstream equipment (think of spray dryers, bleachers, deodorizers, etc) at both Clinton & Moema is needed before it can be made there.

    As for why the company doesn't put WAF/WAP directly on the website, the company appears to prefer working with partners who are looking to improve their products and can expand the line out. It's just a difference in marketing strategies. It sounds like you just want to buy a sample, but the company's thinking of how to move volume. Unless you're willing to buy orders on the level of metric tons, I doubt putting it on the website makes much sense.

    Jan 24, 2015. 04:37 PM | 3 Likes Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]
    We've gone over this before. If you want to talk to me, message me in my inbox.
    Jan 24, 2015. 02:45 PM | Likes Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]
    "I think we'd both agree that you develop some thick skin pretty quickly as a writer."

    Indeed it does.

    And you are welcome that I haven't gone out of my own way to unilaterally create some supposed secret plan for arguing over AMRS who you've long supported.

    But if you're actually looking for more common ground rather than being a bit of a jerk, we share a similar positive sentiment behind REGI. Just thought it's worth mentioning.
    Jan 23, 2015. 05:27 PM | 3 Likes Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]
    Hey, you don't stand alone. I've tasted and I've seen. Both good.

    Creamers are just the beginning. I know its hard to say these days "wait until", but wait until you taste the ice cream, cake, sauces, milk-alternative, breads and cookies yet to come. Again, I've tasted and I've seen. All good.
    Jan 23, 2015. 05:10 PM | 5 Likes Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]
    I would like the same from Tesla, and no doubt people were clamoring for it back before the stock rose. Who cares now.

    As for an article from me, I wouldn't expect one until the general price of carbon that SZYM is using is known, until after the value of its future co-products are determined, and until after a reasonable understanding of its ASPs is actualized. Until then, one either believes what management has said and continues to say, or doesn't believe them. Given the reactionary nature of most people and the less then available information out there, it's clear the majority do not. Understandable.
    Jan 23, 2015. 05:01 PM | 4 Likes Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]
    Indeed. Although I wouldn't go as far as to say "what's really going on"
    Jan 23, 2015. 04:46 PM | 1 Like Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]
    Thank you, Liz.

    I'm tempted to pretend that English is my second language given that asians tend to be dismissed as FOBs half the time. But in reality, English is the only language I know, and even then it seems that I can barely write it free of error. :)

    I put the correction in. Appreciate it.

    Jan 23, 2015. 04:42 PM | 2 Likes Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]
    Maya Pinion,

    I wouldn't take any emotional comfort from my writing either, although I would hope that people begin to investigate more thoroughly on their own as to what is here. I try to provide areas of focus for people to do just that, and it is not my intention to hold their hands when things get tough. While I personally believe in the technology's future success, hold fast to the value found in the company, and will stand as probably the most public target available for their failures, it is entirely up to you to do the due diligence necessary to believe whether or not it is something for you to believe in as well. I do wish you the best in all your endeavors.

    As for hearing good news from Wolfson, he has been saying quite a bit of good news actually - but these days, that appears to falling on deaf ears when the share price controls the sentiment of the audience.

    Jan 23, 2015. 03:45 PM | 8 Likes Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]
    Maxx Chatsko,

    1) Revenue to Solazyme through SRN wouldn't have begun until Phase 3 construction, which was being stalled by the JV relationship. It's worth mentioning that to date Roquette still hasn't even started Phase 3, although this is probably due to ongoing arbitration and their possible inability to even sell the SZYM product line down the road. Solazyme now has 8 SKU's selling WAF. So regardless of how small I expect these initial volumes to tangibly be, the revenue has already begun to flow to SZYM unlike as it would have under SRN.

    2) Yes, I do believe the consistent utility supply is holding back Moema.

    Last of all, I hope your unannounced startup company that you are founding works out well. It sure is tough to be to contributing writer when you have to deal with so many sarcastic comments all the time, don't you agree?

    Relax, it's a joke. :) But given the amount I get from you, I'm sure glad this isn't my career.

    Jan 23, 2015. 03:28 PM | 8 Likes Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]

    I was not aware there was a negative association behind client sampling. Nor do I believe there should be when it comes to early market development. Regarding AlgaVia & Encapso we're talking about two different markets with very, very different adoptions timelines. AlgaVia requires immense product testing in order to create an ideal formulation which must then be introduced and marketed as a new product - which also takes time to build momentum. Even in major brands where a single ingredient is replaced, we're still talking about a lengthy adoption cycle. Product sampling for every future use of AlgaVia shouldn't be viewed as a big deal.

    That said, there are initial sales of the company's WAF right now, although it's not likely to be significant by any means. 8 SKU's is just a start and probably represents just 3-4 different companies who were small enough to accelerate the food ingredient adoption compared to larger major brands. These products also take time to build momentum as previously said. The creamers, for example, were just launched in early January when it comes to nation-wide distribution. Califia Farms is on the higher end of this small-level adapter considering its current clout as one of the fastest growing natural beverage companys out there.

    Regarding Encapso, there are sales being recorded that are more significant than AlgaVia, and there remains plenty of testing going on in the background as well. Whether the product being used in that testing is free or not, who is to say.

    If you're concerned about the company merely giving away product for free, I don't believe that should be a concern about this at all as every instance serves as an investment into future relationships. Concerning the 10-Q, if it explicitly mentions revenue from Encapso (which it does), then that is revenue from encapso and not pertaining to free sampling. Theoretically, free sampling would fall under R&D costs.
    Jan 23, 2015. 01:41 PM | 2 Likes Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]

    Regarding Peoria, I remind people that the whole algal ingredients are limited to this facility when I do (including the thought in my comment above). Market development also takes a very long time. Perhaps beyond what is acceptable in your eyes. I don't believe we are looking at the same picture as it unfolds, albeit we both recognize that the current situation is less than ideal. If you do not want to read what I write, I do encourage you to stop reading it. If you want to believe in this "truth" of executive lying and cheating and failed business plans, the Fool does a wonderful job of addressing that audience.
    Jan 23, 2015. 12:18 PM | 3 Likes Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]
    Isn't that the danger for most companies that rely on establishing joint ventures & partnerships? I've stated before and often do mention that there is a risk on the increasing reliance on partners - clearly Roquette was a prime example of what can happen.

    But if the arrangement also keeps the capital commitment down, I personally think its a fair exchange for the reward that it simultaneously offers. I find it to be a more ideal situation than what happened at Amyris in which they had to put a large plant that they owned on hold.... and now continue to operate with continually looming cash concerns.

    Does it bother me? Sure, as a risk that it is. But does it necessitate my consistent reminder of these potential fears and possible what-if scenarios for what could go wrong? I rather not go down that route. The Fool's handling that department well, and it's not my focus.
    Jan 23, 2015. 12:04 AM | 7 Likes Like |Link to Comment
  • Solazyme Gains Momentum In Food Ingredients [View article]

    I see no reason to compare the two, really. AlgaVia (particularly the whole food ingredients) is a line that can endure for decades but may ramp very slowly. Algenist doesn't likely have that kind of staying power but can ramp very quickly and has. I don't expect for WAF/WAP to surpass Algenist until after 2016 at the earliest barring some upside surprise or rapid acceleration. 8 products (SKU's) are likely for just a couple of product lines (maybe even just 3-4) and the amounts used probably aren't that much yet and each product line must succeed on their own to be of real use to momentum. There's a reason, SZYM hasn't really expanded WAF/WAP out beyond Peoria imo. But I do believe it was smart for them to accelerate the mkt development of this line now in light of the Moema delay.

    My enthusiasm for this company is in its long-term plan and potential (and always has been). I've been following this company for 6 years now and can tell you it has really progressed in many, many ways at a speed that is understandable for me considering its biotech orgins.

    I also feel pretty confident about my feel for the leaders in the industry right now and their respective technologies and microorganisms and still find that Solazyme offers one of the best opportunities in this space. I respect their effective navigation of the issues that have since floundered many companies, and while they clearly mistepped on this timing of this one, I believe they're offering effective solutions to put themselves on track.

    I know the market is concerned about the cash and the delay and the concealed cost figures. They're worried about the stock price and the rebounding short interest and overall lack of interest in the company. They see falling crude oil price and how it is somewhat mirrored by falling vegetable oil prices. As an investor I am too, but they don't discourage me from analyzing the bigger picture at hand or in the belief that the current solutions appear less feasible to the end goals.

    Overall, I find that the value proposition offered by Solazyme remains entirely more promising on many more levels. Investors fail to realize how many decades it's taken to develop infrastructure for processes like hydrogenation or to develop cocoa-butter equivalent markets, for example, or how slow it is for innovation in food to be scaled. But here is a company that has made these processes very obsolete in some ways. This company is achieving so much with a proven technology in so many fields. Just today even, I heard of the pending frack-water crisis (read regulation likely to come) given the largest spill in frack water ever in North Dakota). Yet here is Encapso that has been aggressively advertising their ability (behind the public scene and beyond ptarmigan) to reduce frac water use. Things are happening.

    Will this company succeed as an investment? It remains anyone's speculative bet despite any feasible plan to become self-sustaining and profitable. I still find that the amount of cash on hand should be very useful in accomplishing this, although this too is no guarantee. I also find no reason to believe that the company has no access to capital beyond the markets.

    But for me, its all about the "simplicity" of the technology which is really a natural step in the evolution of where science is taking us. In that regard, Solazyme is already here and well-equipped. The timing may be off, but I find that the long-term value proposition remains very fresh indeed. As for the cash, it'll go much further than investors given the company credit for.

    Jan 22, 2015. 10:33 PM | 13 Likes Like |Link to Comment
  • Solazyme Becomes More Disciplined In Its Use Of Cash [View article]
    I know a reduction in drilling presents a concern, but at least for the time being it's spurring on the adoption rate, and its not like we can even touch the ceiling of our market share in NA this year even if we wanted to. This is quite beneficial at this junction in time as it has greater implications for the longer term to have a more productive momentum in the earliest phases of commercial adoption.

    But I agree with you that growth in the ME (and I would argue in udw offshore operations as well) will provide a more productive future. If you think that NA is searching for efficiency options right now imagine what the ultra-deepwater companies are seeking as well. Our ability to complement oil-based muds might serve well in the offshore plays given the extremes they face down the wellbore. But given the lack of testing there yet n the short history of encapso, it's tough for me to say that with confidence.
    Jan 19, 2015. 12:55 PM | 1 Like Like |Link to Comment
  • Solazyme Becomes More Disciplined In Its Use Of Cash [View article]
    Anything's possible. One would have to reasonably presume it has something to do with increasing the flow of something, which could suggest that it's some sort of frac fluid additive or proprietary frac fluid.

    I would imagine a friction reducer or surfactant serve as the most likely candidates.
    Jan 18, 2015. 09:48 PM | 1 Like Like |Link to Comment