Over the next couple of weeks John and David will be reviewing their real-money 10-Bagger Portfolio. In this video, they take a closer look at Solazyme.
It was an up-and-down quarter for Solazyme, with a little more up than down from a business standpoint. Unfortunately, some development revenue from the Department of Defense is going to dry up. However, the company continues to receive development revenue from companies like Dow Chemical, Chevron, and Unilever. Solazyme also continues to make progress in its health/beauty and nutritional segments. Its partnerships with Roquette and Bunge are progressing, and investments are being made in future manufacturing capacity. The company is also working to develop different kinds of oils for different purposes and different markets. But these are mostly options at this point. John and David have taken a very small position based on the progress Solazyme continues to make. This stock is not for every portfolio, as it is rather speculative.
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David Meier has no positions in the stocks mentioned above. John Reeves has no positions in the stocks mentioned above. The Motley Fool owns shares of Solazyme. Motley Fool newsletter services recommend Chevron and Unilever. 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 Motley Fool has a disclosure policy.