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Algae and the Stock Market 2

Investors interest in algae has been kindled by these actions- PetroAlgae?s $200 million IPO last week, and news that Solazyme has raised an additional $52 million.
Will the algae investment be bearish or bullish?
Some incites from the Digest.
Tue August 17 2010 08:32:25 AM by Duncan algae  |  PetroAlgae  |  Solazyme 1530 views

Comments - 2

  • Shankar wrote:
    Tue August 17 2010 11:27:03 AM

    In the case of Petroalgae, I would keep my money in my pocket.
    Solazyme is obviously heading towards an IPO perhaps by end 2011 or 2012 as rightly pointed out.
    I need a lot more info about Solazyme. The ability to fulfil large orders implies the technology to grow large quantities. Cost can be high at present. One has to buy Solazymes ability to cultivate large quantities, harvest, extract and ability to make co products.
    The Japanese food giant's participation indicates the value of co products Solazyme makes.
    No information available on that front. I will straight away put it on BUY as and when it happens.
    In fact, I expect many new startups coming up the dark fermentation route with several co products to justify the cost.

    Bio centric is in the right area and is making the right moves. Let us look at it closely, while you keep the cash ready.

    Regarding the time frame given by the two profs who have taken considerable efforts to work out how algae grown in Portugal can cover European transportation generated CO2, etc have not given the reason as to why it will take 10 to 15 years.

    For that matter, John Benneman who has been saying that it will take 3 to 10 years and Narsi who has been saying that it will take 5 to 10 years have not said as to why it will take so many years.

    I am a newbie and an investor and not a techie.
    I think it is just a matter of large scale cultivation to happen first. Rest will follow.

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  • Shankar wrote:
    Wed August 18 2010 02:16:33 AM

    The following are additional facts gleaned from various sources.

    PetroAlgae, Inc. has a market cap of $2.14 billion.
    No revenue.

    Total assets of $4.65 million, total liabilities of $50 million, $190,000 in cash, no revenue, and a net operating loss of $7.2 million.
    operating losses of $67 million

    The Company is 94 percent owned by Cayman Island-based affiliates of New York firms Laurus Capital Management and Valens Capital Management.

    The company says Goldman, Sachs & Co., UBS Investment Bank, and Citi, are acting as joint book-running managers, and Baird, Cowen and Company and Piper Jaffray are acting as co-managers for the proposed offering.

    As per PetroAlgae, their proprietary technology, consisting of light and environmental management systems, allows its licensees to grow aquatic microorganisms at a rate that consistently exceeds four times the natural growth rates.

    Vote Up! 0 Vote Down! 0

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