My FWIW was meant to imply that this isn't a value stock. It isn't an upstart either as the company has been around for a while. It initially was a "biofuel" company" and we all know what has happened to those. Fortunately, they charted a different course and are now a specialty chemical company with tremendous year over year revenue growth.
To understand this company, you really have to watch their 2017 investor presentation, and, for that matter, the other presentations on their website.
investors.amyris.com
For those who think that they have no value, you have to wonder why DSM, a very large health and nutrition Dutch company, bought 8 million of their shares at a little higher price that what it trades at today. Today, they have agreements with DSM to make vitamins as well as health and nutrition ingredients for their products.
nasdaq.com
dsm.com
You have to wonder why John Doerr substantially added to his shares last year.
en.wikipedia.org
I would classify this as a special situation, probably more "special" last year as more of the pieces have fallen into place. Joel Cherry, their chief technologist, lays out a good description of what they do in this presentation.
vimeo.com
youtube.com
I place a high value on intellectual property. Amyris has 400 patents and 300 pending. There are 40 PHDs on the payroll. They have strategic collaborations with health, nutrition, fragrance, and flavorings companies. This is my way of playing the growth in the international economy as many of their products are and will be sold overseas.
They will double their revenues for 2017 and expect to double their revenues in 2018.
After the fourth quarter their finances will be in the best shape than it has been in a long time.
So I fully understand the skepticism. My average price is in the low 3 range. So I am betting that they will make it and I own a large position. |
