On Wednesday, ourUnder the Radar Moversnewsletter suggested small cap industrial biotechnology stock Amyris Inc (NASDAQ: AMRS) as a long trade:
Amyris has been on our watchlist for a while. We like it because it’s mostly shrugged off the recent marketwide weakness. But, it’s done so within the context of a bigger-picture recovery from a major pullback several months ago. We’re starting to see higher highs on a regular basis now, and we’re seeing them on higher volume. Yet, there’s plenty of room to keep running.
OurUnder the Radar Moversnewsletter would have a further discussion about Amyris Incs technical chart along with a long trading strategy:
Small cap Amyris Inc isan integrated renewable products company that applies its innovative bioscience solutions to convert plant sugars into hydrocarbon molecules, specialty ingredients and consumer products. The company deliversproducts in focused markets, including specialty and performance chemicals, fragrance ingredients and cosmetic emollients.
Shares of Amyris Inc took off at the end of September when the Company announced that it has expanded its strategic partnership with a global nutraceuticals market leader. The new agreement represents a significant expansion in expected revenue compared toa prior agreement announced on April 27, 2016, and includes the addition of a new nutraceutical target, a credit line of up to $25 million with a 5-year maturity, and an option for a $5-million strategic investment from one of the world’s leading nutraceuticals manufacturers. The CEO stated:
“We’re very pleased with our achievement to date and the significant expansion of our partnership. This relationship continues to be based on our ability to provide our partners with low-cost, high-performance farnesene that can provide them with a competitive advantage while enabling them to grow sustainably. This expanded partnership agreement further transitions us to a more broadly diversified portfolio of high performance, sustainable ingredients to some of the world’s fastest-growing markets and a global leader in low cost, high performance ingredients for the nutraceuticals market.”
In early August, Amyris Inc reported that second quarter revenues were $9.6 million compared with $7.8 million with the increase driven by a 47% increase in product sales largely inthe personal care segment. Collaboration and grants revenues contributed approximately half of the total revenues for the quarter, which was consistent with the same quarter of 2015. Product revenue for the second quarter of 2016 was $4.9 million, up from $3.3 million for Q2 2015 driven by the shipment of a new novel fragrance product, as well as Neossance庐 Squalane sales. Contracts signed in the quarter delivered over $20 million in payments year to date. There was a net loss of $13.566 million compared to$47.162million. The CEO stated:
“We’re very pleased with reaching our best ever quarter of signing new collaborations that have already funded more than $20 million of payments this year and are expected to more than underpin our full year targets. We are encouraged by these results and our success in delivering on our stated milestones and goals thus far this year. Additional progress in the coming months is anticipated to further grow our customer base, improve our balance sheet and further position the company as the leader in industrial biotechnology.”
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