I can't stand casinos, so I suppose I use investments like Senomyx (SNMX)
to scratch that speculative itch. That's not to say that I don't do the
same level of due diligence before, but I go in with open eyes about
the likelihood of the story working out. For most of the past three
years, it didn't look like this story was going to have a happy ending,
as the Street's frustration with an apparent lack of progress in the
company's research efforts and licensing relationships took the stock
from over $7 to below $2.
Now it looks like the story is heading in the other direction. Although licensing relationships with companies like Nestle (OTC:NSRGY) and Ajinomoto
really haven't delivered much and the company is pursuing an uncertain
path of commercializing its own compounds, management believes that its
key asset (S617) may get FDA approval in the first quarter of 2014 and
start appearing in PepsiCo (PEP) products next year.
With
management issuing bold guidance for profitability in 2015, these
shares may still have room to run and reward those shareholders who've
had the patience to hang on this long. In fact, if Pepsi beverages
containing S617 can get 20% of the U.S. diet soda market and Senomyx's
own commercialization strategies can deliver 5% share in markets like
sugar reduction and savory enhancement, upside of more than 80% is
possible from here.
Follow this link to continue:
Senomyx Is Getting A Second Wind On Commercialization Potential
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