Solazyme (NASDAQ:SZYM) pops 12% in pre-market
Modern Energy Roundup - April 3, 2012
Written by Green Chip Stocks
Posted April 3, 2012 at 1:25PM
- Energy Focus, Inc. (OTCBB:EFOI) announced this morning that it landed a $1.8 million order from “a leading Energy Service Company” for its LED lamps. Despite the fact that I hate reading press releases about deals like this when all companies are not named, this is a pretty solid deal for EFOI. The company struggled a bit last year, but 2012 has been looking up. Particularly after it was announced a few weeks ago that the company had entered into a 5-year cooperation agreement with Communal International, Inc. This deal essentially allows EFOI access to the Asia market. EFOI could get a quick boost today, although the very speculative nature of this particular stock will likely keep it from getting much love from those seeking to go long in the LED space.
- Solazyme, Inc. (NASDAQ:SZYM) announced this morning that it and Bunge (NYSE:BG) are forming a joint venture to build, own and operate a commercial-scale renewable tailored oils production facility adjacent to Bunge's Moema sugarcane mill in Brazil. Although I'm not a huge fan of today's conventional corn-based ethanol that we're using in the U.S. (at an enormous cost to the tax payer and to the environment), Solazyme's access to Brazil and its sugarcane will prove to be a good thing for the company. In fact, the stock is up about 12 percent in pre-market. Fortunately, I updated the members of my Green Chip Stocks service to this on back on March 9, when it was trading at around $13.00 a share. Right now it's around $16 – which was my initial price target.
Certainly I'm pleased with the gains, but my only hangup with this one is that the company doesn't seem to have much of a cushion as it seeks to expand. I wouldn't be surprised if the company had to raise some additional capital sometime in the next year or so.
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