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
Showing posts with label International Flavors and Fragrance. Show all posts
Showing posts with label International Flavors and Fragrance. Show all posts
Thursday, November 14, 2013
Tuesday, December 11, 2012
Seeking Alpha: Taking The Bitter With The Sweet At Senomyx
It's a fact of the investing life that when you swing for the fences,
you will occasionally strike out. Thus far, owning shares of "bioflavor"
developer Senomyx (SNMX)
has been a frustrating and losing experience for most investors. While
there is still considerable potential in this very under-followed stock,
investors have to accept a biotech-like risk that Senomyx will
ultimately be a bitter experience and a total washout as a stock.
Continue reading here:
Taking The Bitter With The Sweet At Senomyx
Continue reading here:
Taking The Bitter With The Sweet At Senomyx
Tuesday, October 4, 2011
Investopedia: McCormick A Good Mix Of Stable And Spicy
It's probably trite to make "spicy" quips about McCormick (NYSE:MKC) anymore, but if the shoe fits .... After all, its dominating presence in spices and seasonings is a major positive factor in the investment thesis, and the company does have some options that could significantly enhance the growth and returns of this business over time. To the extent that there can be defensive growth stories in packaged food, McCormick certainly looks like one.
Sweet and Sour Third Quarter Results
This was a pretty textbook example of a "mixed" quarter for McCormick. Reported revenue rose 16 and 11% on a local currency basis - strong even by the relatively lofty recent standards of this industry. Growth was balanced between improved pricing (up almost 5%) and better volume (up more than 6%), making McCormick one of the relatively rare companies to pass through significant price hikes without really paying for it in volume.
For the full article, click on the link:
http://stocks.investopedia.
Sweet and Sour Third Quarter Results
This was a pretty textbook example of a "mixed" quarter for McCormick. Reported revenue rose 16 and 11% on a local currency basis - strong even by the relatively lofty recent standards of this industry. Growth was balanced between improved pricing (up almost 5%) and better volume (up more than 6%), making McCormick one of the relatively rare companies to pass through significant price hikes without really paying for it in volume.
For the full article, click on the link:
http://stocks.investopedia.
Monday, July 4, 2011
Investopedia: High Expectations In Place For McCormick
Spice and seasoning leader McCormick (NYSE:MKC) has some interesting challenges these days. On one hand, the company has a great franchise in its core spice and seasoning business, albeit a franchise that is challenged today with higher input costs and competition from private labels. Likewise, while the company has the potential to grow its business by expanding further into packaged food categories like boxed meals, companies like ConAgra (NYSE:CAG) and General Mills (NYSE:GIS) have demonstrated lately that success in packaged food is hardly easy.
A Solid Second Quarter
Even if this is a tough stretch for food companies, McCormick didn't show any weakness on the top line. Helped in part by currency and pricing, McCormick delivered 11% growth this quarter (8% in constant currency) and beat the high end of the analyst range. Perhaps its a sign of McCormick's brand power that the company was able to register both a 5% boost in pricing and a 3% increase in volume - other companies like General Mills have recently found that price increases usually take a toll on volumes.
While McCormick did offer good news on the top line, profitability was less impressive. The company saw gross margin slide more than a point as input costs took their toll. McCormick captured some of this back through the operating line, and operating income rose more than 12%, but overall the bottom line performance was not so spectacular given the top line outperformance.
To read the full piece, please click below:
http://stocks.investopedia.
A Solid Second Quarter
Even if this is a tough stretch for food companies, McCormick didn't show any weakness on the top line. Helped in part by currency and pricing, McCormick delivered 11% growth this quarter (8% in constant currency) and beat the high end of the analyst range. Perhaps its a sign of McCormick's brand power that the company was able to register both a 5% boost in pricing and a 3% increase in volume - other companies like General Mills have recently found that price increases usually take a toll on volumes.
While McCormick did offer good news on the top line, profitability was less impressive. The company saw gross margin slide more than a point as input costs took their toll. McCormick captured some of this back through the operating line, and operating income rose more than 12%, but overall the bottom line performance was not so spectacular given the top line outperformance.
To read the full piece, please click below:
http://stocks.investopedia.
Monday, March 21, 2011
Seeking Alpha: A Taste Of The Flavor Company Sector
Is it any surprise that the worldwide market for flavors is a multi-billion dollar per year business? After all, what really separates a Coke drinker from a Pepsi drinker other than the taste? Likewise, until Frito-Lay figures out how to grow a potato that comes out of the ground tasting like sour cream and onion, there will be a strong demand for both novel and familiar flavors, and companies like International Flavors and Fragrances (IFF) and Senomyx (SNMX) will stand to benefit.
Good Taste Really Matters
It is hardly controversial to suggest that a huge amount of packaged food brand value is wrapped up in taste. To paraphrase comedian Dave Chappelle, aside from trace amounts of flavorings, Coca-Cola is really just "sugar, water, and brown (caramel color)." We like things that taste good, and we naturally crave particular combinations of salt, sweet, and savory. Consequently, it's a safe bet that packaged food companies will continue to build brand identity around flavor.
To read the full article, please go to Seeking Alpha:
http://seekingalpha.com/article/259259-a-taste-of-the-flavor-company-sector
Good Taste Really Matters
It is hardly controversial to suggest that a huge amount of packaged food brand value is wrapped up in taste. To paraphrase comedian Dave Chappelle, aside from trace amounts of flavorings, Coca-Cola is really just "sugar, water, and brown (caramel color)." We like things that taste good, and we naturally crave particular combinations of salt, sweet, and savory. Consequently, it's a safe bet that packaged food companies will continue to build brand identity around flavor.
To read the full article, please go to Seeking Alpha:
http://seekingalpha.com/article/259259-a-taste-of-the-flavor-company-sector
Wednesday, January 12, 2011
Investopedia: DuPont - From Gunpowder To Plastics To Yogurt
If a company is going to hang around for a couple of centuries, it is a good bet that it will have to change and adapt with the times. DuPont (NYSE:DD) is an excellent case in point - while grouped into the generally stodgy, boring, and cyclical "chemicals" industry group, DuPont has a rather remarkable record of remaking itself and getting involved in new growth markets. Though DuPont's record of diversification is not flawless, investors should at least be willing to give management the benefit of the doubt with this latest acquisition.
3D - DuPont's Danisco Deal
DuPont announced Monday morning that it would acquire Danish ingredient and enzyme company Danisco for $5.8 billion in cash and the assumption of an additional $500 million of Danisco's debt. The deal gives a better than 25% premium to Danisco shareholders and will likely produce more than 10% earnings dilution for DuPont in the first year.
As has already been widely reported, this is an unusually large deal for DuPont - the largest deal the company has done since it acquired Pioneer for nearly $8 billion more than a decade ago. That deal, though, has proven to be an exceptionally good move in hindsight, as DuPont is now one of the leading advanced seed trait companies in the world. (For related reading, see 2010's Highest Performing DJIA Stocks.)
Some New, Some Old
About two-thirds of Danisco's revenue comes from products for the food industry - an industry that DuPont has heretofore not been much of a focus for the company. In addition to a sweeteners business that competes with the likes of Tate and Lyle (Nasdaq:TATYY), Danisco sells a host of so-called "enablers" that include emulsifiers, stabilizers, flavor enhancers, and so on. In more practical terms, when you buy a bottle of salad dressing and it stays shelf-stable for weeks, that is because of the kinds of products Danisco produces.
Please click below to continue to the full piece:
http://stocks.investopedia.
3D - DuPont's Danisco Deal
DuPont announced Monday morning that it would acquire Danish ingredient and enzyme company Danisco for $5.8 billion in cash and the assumption of an additional $500 million of Danisco's debt. The deal gives a better than 25% premium to Danisco shareholders and will likely produce more than 10% earnings dilution for DuPont in the first year.
As has already been widely reported, this is an unusually large deal for DuPont - the largest deal the company has done since it acquired Pioneer for nearly $8 billion more than a decade ago. That deal, though, has proven to be an exceptionally good move in hindsight, as DuPont is now one of the leading advanced seed trait companies in the world. (For related reading, see 2010's Highest Performing DJIA Stocks.)
Some New, Some Old
About two-thirds of Danisco's revenue comes from products for the food industry - an industry that DuPont has heretofore not been much of a focus for the company. In addition to a sweeteners business that competes with the likes of Tate and Lyle (Nasdaq:TATYY), Danisco sells a host of so-called "enablers" that include emulsifiers, stabilizers, flavor enhancers, and so on. In more practical terms, when you buy a bottle of salad dressing and it stays shelf-stable for weeks, that is because of the kinds of products Danisco produces.
Please click below to continue to the full piece:
http://stocks.investopedia.
Subscribe to:
Posts (Atom)