The Cover-Up
The business update last Friday seems to be in quick response to the Motley Fool article that was published last Tuesday. And the first line wording in that update alludes to: "an update on certain aspects". This could be a tell-tale sign that they are just trying to suggest what they think you want to hear, and does not disclose all of the 'other aspects' that they don't want you to know about, or even to think about. A subtle diversion.
The Usual Forward-Looking Statements
The pr doesn't really tell you anything new. Nothing they haven't already told you three or six months ago. Not much of an update at all. The 2016 revenues probably did increase, but nowhere near projections. And that revenue was not entirely based on product, as much as it was just from the upfront money received through some of those collaboration agreements themselves. Just look at the negative EPS surprise of the previous 3rd quarter at ($0.08). Where did the money go? The potential problem is them not reaching any future supply milestones that were perhaps laid out in some of those agreements, which could then affect how those collaboration agreements themselves may change as time goes on.
Another thing is how they worded: "we are now transitioned away from commodity-related product sales". Which is referring to all types of biofuels. If you remember, potential biofuel sales were touted as one of their main advantages during the last internet pump-n-dump.
Other Things They Don't Want To Talk About
They deliberately did not allude to any last quarter sales, the state of dilution, the grand total debt, or even how the new year is starting off. Using terms like "record revenues" doesn't really mean much in relative terms. It's just a phrase of semantics. And any new upcoming collaborations will most likely be made under similar terms, in which any possible effectiveness would not be realized until many more years out into the future.
All - In - All
This was most likely a response to the Motley Fool article. And therefore perhaps another attempt to buffer-up while leading you into another tell-tale quarter report in the meantime .
There is a strong possibility that $0.444 could soon become another new top.
Just My Opinion
