4. Danimer Scientific, Inc. (NYSE:DNMR)
Greenlight Capital’s Stake Value: $38,532,000
Percentage of Greenlight Capital’s 13F Portfolio: 2.58%
Number of Hedge Fund Holders: 21
Market Capitalization as of December 4: $1.088 billion
David Einhorn increased his stake in Danimer Scientific, Inc. (NYSE:DNMR), a sustainable biopolymer manufacturer, by 12% in the third quarter. Einhorn holds 2.35 million shares in Danimer Scientific, Inc. (NYSE:DNMR), worth $38.5 million, representing 2.58% of his total Q3 securities.
At the end of the third quarter of 2021, 21 hedge funds in the database of Insider Monkey were long Danimer Scientific, Inc. (NYSE:DNMR), down from 30 funds in the preceding quarter.
Danimer Scientific, Inc. (NYSE:DNMR) posted its Q3 results on November 15. The EPS amounted to -$0.15, missing estimates by -$0.06. Revenue for the period totaled $13.37 million, missing analysts’ consensus revenue estimates by $1.20 million.
After the Q3 earnings miss, Jefferies analyst Laurence Alexander on November 16 lowered the price target on Danimer Scientific to $30 from $34 and kept a Buy rating on the shares, stating that overall trends for the company appear to be on track.
Here is what Nelson Capital Management has to say about Danimer Scientific, Inc. (NYSE:DNMR) in its Q1 2021 investor letter:
“In the materials sector, we bought Danimer Scientific (tkr: DNMR), a next-generation bioplastics company offering completely biodegradable plastics that break down in virtually any environment.
While essential to modern life, plastic products are an ongoing environmental concern due to their longevity and therefore the pollution that results. Despite nationwide efforts to recycle plastics, only 8.5% of plastics waste in t he U .S. is being recycled, according to a study by the U.S. Environmental Protection Agency. Danimer Scientific (t k r: DNMR) has developed a method to make plastic products that are 100% biodegradable and compostable without compromising on functionality. The company sells its PHA- based plastics under the brand name Nodax and is currently the only viable commercial-scale offering.
Danimer uses canola oil to create 100% biodegradable and compostable biopolymer, PHA, through a completely waste-free process. PH A biodegrades in both anaerobic (without oxygen) and aerobic (with oxygen) environments, and unlike other biodegradable plastics, it does not need heat, moisture, or an industrial composting plant to break down. PHA-based plastics can effectively biodegrade in a waste treatment facility, the ocean, or even in home compost piles within 12-18 weeks after the product is discarded.
PHA plastics are versatile, adaptable and heat and UV-resistant. They have been FDA approved for food contact and are comparable in functionality to many products produced using petrochemicals. The formula can be customized to create many types of plastic resins for a multitude of purposes. The range of applications for products made with PH A is enormous and includes straws, cups, lids, bottles, produce bags, shopping bags, utensils, diaper linings, plates, wipes, toys, trash bags, seals, labels, glues and much more.
Danimer went public in late 2020 via Special Purpose Acquisition Company (SPAC). As a newly public company, Danimer’s stock price tends to be rather volatile, but we bought a small position for the long-term opportunities it offers. Dem and for PHA plastics is likely to accelerate over the next several years as corporations and the public become increasingly concerned about the environmental impact of wrappers from consumer- packaged goods. More government regulation of single- use plastics has pressured large corporations to adapt. Additionally, the Biden administration has a strong emphasis on climate change and sustainability which will provide a near- to-mid-term tailwind for Danimer. As the leading PHA innovator with over 125 patents across 20 countries, Danimer is well-positioned to benefit from these trends.”
