Fiscal Cliff Deal Helps Amyris Inc., (NASDAQ: AMRS)
Fiscal Cliff Deal Helps Amyris Inc., (NASDAQ: AMRS)
Amyris Inc., (NASDAQ: AMRS) is an integrated renewable products company. Its focus is on providing sustainable option s to a wide range of petroleum-sourced product used in specialty chemical and transportation fuel markets worldwide. Its synthetic biology platform converts plant sugars into an assortment of hydrocarbon based molecules. These supple building blocks can be used in an assortment of products. Amyris is currently utilizing Brazilian sugarcane as its chief feedstock.
Shares of the company have rallied over 25 percent in the past week. Prices have moved between a 52 week high of $11.75 and a 52 week low of $1.57 and are now trading 140% above that low price at $3.88 per share. Over the last five market days, the 200-day moving average (MA) has gone down 1.2 percent while the 50 day MA has risen1.0 percent. The Alternative Energy Industry got huge support this week as a last-minute deal by congress to get around the “fiscal cliff,” unexpectedly included the extension of tax credits for renewable energy and alternative fuels.
Reports indicate recent heavy insider trading, especially by company execs. Fernando Reinach, a director of Amyris, bought 83,892 shares on December 24, 2012. John Doerr purchased an additional 1,677,852 shares on the same date, upping his ownership of the company to a total of 6,979,757 shares which translates to a tidy 9.4 percent of the company. Sheikh Abdullah Bin Khalifa Al Thani, also a director, bought 3,355,704 shares to add to what he already. His shares translate to 8.0% ownership of Amyris. All these transactions were carried out in pursuant to private placements.
Amyris has a market cap of $ 230.35 million. Shares are trading at $3.88. This is a terrific small-cap play right now as the company rides the rally connected with the unexpected largesse of our nation’s law makers. The company’s closest competitors in the industrial synthetic biology industry are Codexis Inc., (NASDAQ: CDXS), currently trading at $2.66 with a market cap of $99.89 million and FutureFuel (NYSE: FF), currently trading at $12.22 and market cap of $505 million. All three companies may make for a good, largely unexpected play right now.
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I would like to know more about why sales declined to $19MM from $32MM in 3Q12. And the company’s plant in Brazil only started production recently. Not clear to me how production in Brazil relates to US tax credits.
perhaps the Brazil plant inflated capex, and also stalled progress in the U.S
I don’t think the article states that growing stock in Brazil has anything to do with the company benefiting from a tax break. Perhaps I read it incorrectly?
When management is buying shares profit may be around the corner.