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4-Star Stocks Poised to Pop: Solazyme

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's business and see what CAPS investors are saying about the stock right now.

Solazyme facts

Headquarters (Founded)

San Francisco (2003)

Market Cap

$836 million

Industry

Consumable fuels

Trailing-12-Month Revenue

$42.94 million

Management

Co-Founder/CEO Jonathan Wolfson

Co-Founder/Chief Technology Officer Harrison Dillon

Trailing-12-Month Operating Margin

(58.1%)

Cash/Debt

$266.5 million / $20.5 million

Competitors

ExxonMobil (NYSE: XOM  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 99 members who have rated Solazyme believe the stock will outperform the S&P 500 going forward. These bulls include TMFBiggles and All-Star brewersfan81, who is ranked in the top 6% of our community.

Just last month, TMFBiggles nicely summed up the Solazyme bull case: "I like the potential for any company that can figure out how to monetize agricultural byproducts, and algae is certainly all the rage these days in both industrial and hippie-based applications. Taking money from hippies is a win in my book."

Currently, Solazyme even sports a debt-to-equity of just 8%. That's lower than that of listed rival Exxon (10%), let alone other clean energy companies like FuelCell Energy (Nasdaq: FCEL  ) (63%) and Rentech (AMEX: RTK  ) (474%).

CAPS All-Star brewersfan81 elaborates on the Solazyme bull case:

1) Fuels and Chemicals
2) Nutritionals
3) Healthcare (anti-aging cream)

Any one of these three could be a big driver (obviously, No. 1 would be a huge coup). Either way, this is really a bet on two things:

-Smart Management
-SZYM's microalgae patent providing an efficient solution that gives the company a moat

What do you think about Solazyme, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Solazyme? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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 September 01, 2011, at 10:57 AM, briscully wrote:

    Aww, seems like it was only Yesterday when Solazyme was just a 1 Star Stock. They Grow Up So Fast. *Sniff*

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Related Tickers

5/25/2012 4:00 PM
SZYM $9.84 Down -0.08 -0.81%
Solazyme, Inc. CAPS Rating: ****
XOM $82.08 Down -0.53 -0.64%
ExxonMobil Corp CAPS Rating: *****
RTK $1.86 Down -0.06 -3.13%
Rentech, Inc. CAPS Rating: **
FCEL $1.02 Up +0.01 +0.99%
FuelCell Energy, I… CAPS Rating: **

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