Why Solazyme Rocked This Week

Solazyme (NASDAQ: SZYM  ) was up 11% for the week, so far. And it's up an additional 12% just today. The company makes oils, using sugars and algae; these oils could transform the ingredients we use for transportation, cosmetics, and even food. The company is up after announcing that it has reached commercial-scale production at an Archer-Daniels-Midland (NYSE: ADM  ) plant in Iowa.

This small-cap and recent IPO has a lot of potential, though it's down a lot since it went public. So far, it has relied on partnerships for developing its products;  it has one in place with Chevron (NYSE: CVX  ) , for example, to jointly research alternative energy possibilities. And it continues to receive development revenue from Dow Chemical (NYSE: DOW  ) and Unilever (NYSE: UL  ) . This news shows that it's evolving into a real business.

This is a complex company to analyze, and its costs are currently outstripping its revenue growth. It also faces intense competition from well-capitalized oil companies that are investing in alternative energy. This is a very risky investment. So far, though, management appears to be taking the right steps to build the business.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report, "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (1) | Recommend This Article (5)

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 16, 2012, at 7:44 PM, Cake123xyz wrote:

    So basically you're saying you don't know really know what's going on with the company and so everyone should "take it easy."

    Thanks. That was... helpful.

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: 2155773, ~/Articles/ArticleHandler.aspx, 9/16/2014 5:26:51 AM

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