Why Shares of Solazyme Inc Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Solazyme Inc (NASDAQ: SZYM  ) jumped as much as 20% early in trading today before settling in with a 7% gain late in the day.

So what: The big news is that Solazyme has begun commercial production at the renewable oils plant it has in Brazil with Bunge Global Innovations. This is a 100,000 metric ton per year facility, which now overshadows a 2,000 MT/year facility in Peoria and a 20,000 MT/year plant in Clinton/Galva.  

Now what: This is an important step toward long-term success for Solazyme and will prove out how valuable its renewable oils are. Investors can also expect revenue from the joint venture to pick up in the second quarter, a huge positive because Solazyme has been swimming in red ink since coming public. I'll wait to see actual financial results before getting bullish on Solazyme but this is no doubt a step in the right direction for the company.

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  • Report this Comment On May 30, 2014, at 11:50 AM, Jahuel wrote:

    What every article on this ignores is that Solazyme hasn't just begun commercial production - this announcement also stated that they've successfully done a full batch @ 625,000 liters.

    This isn't Solazyme signaling the start of the race, but that the first lap is already complete!

  • Report this Comment On May 30, 2014, at 2:02 PM, Hansen wrote:

    Solazyme Briefly Hits 2-Month High After Production Commences In Brazil http://goo.gl/hcAl7A

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