In-depth article on SZYM

Here’s a detailed and sobering analysis by Maxx Chatsko, a knowledgable source in the biofuels world. It’s long, but worth the read.


A few weeks ago I wrote an article… detailing the 12-month-long sequence of events that indicated renewable oil manufacturer Solazyme (NASDAQ: SZYM ) was having larger than expected (and disclosed) problems with its manufacturing facility in Moema, Brazil. At the end of the article I suggested management use the third-quarter earnings conference call as an opportunity to begin rebuilding investor trust by being honest about the seemingly obvious issues. Platform problems wouldn’t necessarily spell disaster for the company as a whole, depending on their severity, but promises for high sales volumes and gross margin in the near term didn’t quite match up with realities on the ground, such as a lack of market development and absence of the reliable track record needed to reel in customers.

Well, management seized the opportunity, but there won’t be much celebrating after investors digest and interpret the sobering admissions made during the call. There’s plenty to cover to explain today’s drop (and the declines to follow), so let’s dig in….

1 Like

For what it’s worth, I read Maxx Chatsko’s article and decided to close my position in SZYM. I should have followed my own advice and avoided companies which are still developing and losing money.