Caution reiterated on Amyris ahead of earnings

|By:, SA News Editor

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.