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 (TVIA) 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.
