Caution reiterated on Amyris ahead of earnings


Pulling out of a sizable slide this year, Amyris (AMRS +7%) today is up sharply on big volume ahead of Q4 results after the bell, but Cowen's Robert Stone continues with an Underperform and $3 price target.

The company has about $76.3M in cash, but a burn rate, according to Stone, of $15M-$20M per quarter, meaning it could all be gone this year and a 40% dilution as early as the first conversion dates in 2015 Q1. If the stock remains above the $2.44 and $2.87 conversion prices, says Stone, paid-in-kind interest adds about 4% more shares annually.

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Comments (2)
  • jk1550
    , contributor
    Comments (3) | Send Message
     
    It is quite clear that Robert Stone know nothing about the company he purports to give this investors advise on.
    26 Feb 2014, 02:12 PM Reply Like
  • BlacknGold
    , contributor
    Comments (234) | Send Message
     
    Dilution remains a factor that should not be overlooked by investors, but the cash burn rate is not accurate and ignores the fact that Amyris will be cash flow positive in 2014. That information was public knowledge when Robert Stone issued his warning.

     

    Maxx Chatsko
    26 Feb 2014, 03:07 PM Reply Like
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