We have pioneered an industrial biotechnology platform that harnesses the prolific oil-producing ability of microalgae. We use standard industrial fermentation equipment to efficiently scale and accelerate the microalgae's natural oil production time to just a few days. Our platform is feedstock flexible and can utilize a wide variety of plant-based sugars, such as sugarcane-based sucrose, corn-based dextrose, and sugar from other biomass sources including cellulosics. By growing our proprietary microalgae in the absence of light using fermentation tanks to convert photosynthetic plant sugars into oil, we are in effect utilizing "indirect photosynthesis."
Alright men here is another one of my favorite trades, this here was an IPO a little over a year ago. I bought on the first pull back and played from $21 to $26 and then stayed out because I knew it was going to correct to a realistic range. I picked the bottom at $8 and I have flipped in and out of this security many times since then. It is a sloid company with solid contracts.
Currently it’s biofuel division has huge contracts with the US Navy and has flown several aircraft on their biofuel blends over the last year. My personal favorite the F-18 Hornet dubbed “The Green Hornet” has done several test flights on their fuels. They also are doing a test on a deisel ship currently to see the benfits of running these blends over the tradional JP-5/8 blends that we use in the Navy.
Their Nuetracueticals Division has landed a big contract with Sephora Cosmetics and QVC TV. So they are diverse in their business plan and offer a multitude of products from their algae derived blends. Many OTC companies have claimed to be working on this, this company is actually doing it.
This security is listed on the NASDAQ and here is their overview:
Renewable Oil Markets Solazyme oils address many of the challenges associated with traditional oils, such as constrained supplies, volatile pricing, and potentially negative and irreversible environmental effects. The "drop-in" nature of our tailored oils enables compatibility with existing production, refining, and distribution infrastructure in each of our target markets. Our oils can be tailored to address key performance properties of petroleum and/or other natural oils. We believe the greatest market needs our technology platform can address are in the fuels, chemicals, nutritionals, and skin and personal care markets. Fuels Global demand for alternative fuels is expanding due to population growth, increased attention to energy security, and environmental policy mandates. For example, the Environmental Protection Agency set 2011 renewable fuel standards volume requirements at 1.35 billion gallons of advanced biofuels. And the U.S. Navy's goal is to operate at least 50 percent of its fleet on clean renewable fuel sources by 2020. Achieving this objective will require a significant use of biofuels. There's also a growing market for tailored oils to compete against other biofuel sources, such as soy oil in Brazil and rapeseed oil in Europe. Chemicals Petrochemicals are another significant oil market, estimated at $611 billion. In addition, attractive opportunities exist in the oleochemicals (derived from fats and natural oils) market. In 2009, about 9 million metric tons of palm kernel and coconut oils were consumed globally for food and industrial applications such as laundry detergent, soap, and shampoo. Meanwhile, functional fluids (derived from either petroleum or other conventional oils), such as airplane de-icing fluids, must meet strict industry requirements and possess specific physical properties, which increases their market value potential. Solazyme's tailored oils are a natural fit for these markets. Solazyme has announced partnerships in the chemical markets with Unilever and The Dow Chemical Company. Nutritionals The $2 trillion packaged food industry is actively seeking more natural, sustainable sources of fiber and healthful fats without compromising value, quality, taste, or nutrition. Food systems are complex, and Solazyme tailored oils can be crafted specifically to achieve the performance and shelf-life properties of food products. Solazyme has partnered with Roquette Frères to launch Solazyme-Roquette Nutritionals, a joint venture commercializing a suite of microalgae-derived food ingredients. Health Sciences Our Health Sciences business is targeting the global skin and personal care market, which is estimated at $323 billion. Within this market, we target (1) toiletries, makeup, and hair care, estimated at $239 billion, and (2) skin care, estimated at $84 billion. Consumers are staying active and living longer, and their desire to appear youthful will continue to drive growth in the beauty and personal care markets. Solazyme has developed microalgae-derived skin care products and signed distribution deals with Sephora International, Sephora USA, and QVC. Unique to our business, we are entering into to this market with Solazyme branded products, including Algenist.
The TA Chart wise here, when you look at the one year snapshot you can see the typical IPO pop and drop until correct valuation is achieved, this was furthered by overall market supression at the time too. It has bounced nicely has trended up since then.
Looking at the finer resolution here, the 6 month chart is showing a possible cup and handle play, I think it is good for a $18 to $19 run if not more, depending on the breakout price after the handle is complete.
