Why Solazyme Is Set to Keep Soaring

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, renewable oil producer Solazyme (Nasdaq: SZYM  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Solazyme and see what CAPS investors are saying about the stock right now.

Solazyme facts

Headquarters (founded)

South San Francisco, Calif. (2003)

Market Cap

$454.2 million

Industry

Consumable fuels

Trailing-12-Month Revenue

$50.6 million

Management

Co-Founder/CEO Jonathan Wolfson

Co-Founder/Chief Technology Officer Harrison Dillon

Trailing-12-Month Return on Equity

(32.5%)

Cash/Debt

$167.1 million / $15.8 million

Competitors

Archer-Daniels Midland (NYSE: ADM  )

ExxonMobil (NYSE: XOM  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 349 members who have rated Solazyme believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, TempoAllegro, tapped the stock as a particularly attractive growth pick:

Solazyme is one of the most interesting -- and misunderstood -- companies out there today. Many people think of it as a biofuels company. What they do is create different kinds of oils from very small algae in a patented process that happens in the dark. ...

This company IPO'd soon after May 2011 around $18.00 per share and has had a rocky ride down to its current price of about $7.46 per share. The market cap is not even a half billion yet. However, some positives are that it has a current ratio of over 8, and just over 43% of shares are held by insiders. ...

[D]on't you think after profitability comes, their engineers will come up with other innovations? You need to make your own decision, but for me, I will keep investing more into this company if things continue developing, as I believe they will.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Solazyme may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (4) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 03, 2012, at 6:48 PM, notthisagain wrote:

    To Keep Soaring? Are you by chance holding the graph upside down?

  • Report this Comment On December 03, 2012, at 7:37 PM, seattle1115 wrote:

    Watch Solazyme's nutritional product development carefully. If they can deliver half of what they promise, they can change the world.

  • Report this Comment On December 04, 2012, at 5:24 PM, Lachplesis wrote:

    This article is foolish (yes with a small "f").

    1. ADM is not a competitor, it's a partner company.

    2. SZYM is not in a "consumable fuels" industry. They make oil. Oil is far from being limited to consumable fuel category.

    3. SZYM is not an energy stock.

    Do a better research please, as articles of such badly researched quality provide low value to Fools.

  • Report this Comment On December 06, 2012, at 4:50 PM, Aloft15 wrote:

    Bought this stock after foolish recommendation.

    Disappointed thusfar.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2137238, ~/Articles/ArticleHandler.aspx, 10/24/2014 5:47:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement