Solazyme Inc (SZYM) Is Planting Itself for Success

A much greater threat to Solazyme in the near term is energy prices. The low cost of both natural gas and oil will make it difficult for the company to sell into the alternative-fuels markets if traditional fuel prices make the switching costs not commercially viable.

What a Fool believes
Solazyme investors need patience. It’s best to look at the Algenist products as the first bud on a young plant. They’re a foreshadowing of things to come, and they’ll help slow the cash burn, but they’re still not a significant contribution.

Early 2014 will be a strong indicator of the company’s success. Once customers get to see the types of offerings available, we’ll have a clearer picture of the market demand the company can expect. Even if these products do look promising to consumers, though, it will probably still be a long time until the company can realize a significant fraction of that potential market.

The article Solazyme Is Planting Itself for Success originally appeared on Fool.com and is written by Tyler Crowe.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him on Fool.com under TMFDirtyBird, Google +, or Twitter: @TylerCroweFool.The Motley Fool recommends Chevron and owns shares of Solazyme.

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