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 Givaudan. Show all posts
Showing posts with label Givaudan. Show all posts
Thursday, November 14, 2013
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
Thursday, December 23, 2010
A Royal Present For Martek Shareholders
Martek Biosciences (Nasdaq:MATK) shareholders woke up to an early Christmas present Tuesday morning, as the company agreed to sell itself to a Dutch chemical conglomerate. Although Martek is going at price that is about 50% of its all-time highs, shareholders can take some satisfaction that their board of directors managed to get a price for these shares that the market has not been willing to pay for about two and a half years.
A Healthy DealDSM (also known as Royal DSM) (Nasdaq:RDMSY), a Dutch conglomerate that is increasingly focused on nutrition and pharmaceuticals, has reached an agreement to acquire Martek for $31.50 per share in cash. That represents a total deal price of $1.09 billion for DSM and a premium of about 35% for Martek. That also represents roughly a 10 times multiple to trailing EBITDA - a price that is pretty fair for Martek given the multiples on comparables like Givaudan, Symrise, or Croda.
A Good Deal For DSM
This looks like a completely rational and savvy deal for DSM. The company has been working hard to reduce its industrial/performance chemical exposure (over $1.6 billion in divestitures recently), while increasing its nutrition and pharmaceuticals/life sciences exposure. To that end, not only does Martek's polyunsaturated fatty acids business fit in well with DSM's infant nutrition business, but the two companies had already been working together for some time.
Please follow the link for the full story:
http://stocks.investopedia.
A Healthy DealDSM (also known as Royal DSM) (Nasdaq:RDMSY), a Dutch conglomerate that is increasingly focused on nutrition and pharmaceuticals, has reached an agreement to acquire Martek for $31.50 per share in cash. That represents a total deal price of $1.09 billion for DSM and a premium of about 35% for Martek. That also represents roughly a 10 times multiple to trailing EBITDA - a price that is pretty fair for Martek given the multiples on comparables like Givaudan, Symrise, or Croda.
A Good Deal For DSM
This looks like a completely rational and savvy deal for DSM. The company has been working hard to reduce its industrial/performance chemical exposure (over $1.6 billion in divestitures recently), while increasing its nutrition and pharmaceuticals/life sciences exposure. To that end, not only does Martek's polyunsaturated fatty acids business fit in well with DSM's infant nutrition business, but the two companies had already been working together for some time.
Please follow the link for the full story:
http://stocks.investopedia.
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