That news, in and of itself, is not worthy of a share price increase for this simple reason: "Stronger than spider silk" is not really of any use to industry. Whatever the purpose, be it sneakers or bullet-proof vests, you'd never see an engineer say, "Well, I'll take anything stronger than spider silk." They would say, "Well, I'll take anything with a breaking strength above XXX and an elasticity above XXX...", etc.
What KBLB has done, with its co-option of the silkworm to do the hard work, is really tremendous science. Increasing the strength/elasticity/whatever desirable trait should not be done with spider silk in mind, but should be done with the purpose of the fiber in mind.
Keep in mind, as a scientist I LOVE the fact that changing the DNA sequences in a predictable manner can result in a predictable, measurable change in final protein (and therefore, silk) product, but the market acts on the ability to sell said silk. "Stronger than Spider Silk" is a tagline, not an end game.
The science is there, the ability to customize the silk is there, the market knows this. There may be a small pop if Big Red news is released independently but it's just a rehashing of what we already know...KBLB can custom-make silk fibers with desired characteristics.
Now who wants to place an order? That's where the money is.
ADDENDUM: This is all, obviously, my opinion. It's not fact. It's just how I feel a group of well-informed investors (at least scientifically well-informed) would react to that stand-alone news.
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