Amyris Inc (NASDAQ:AMRS) stock has been ripping higher on the strength of several recent announcements, including possible market penetration in Asia. The rally is important, as it is bringing shares of the stock closer to the important $1 threshold necessary within the next two months to avoid a possible delisting or, more likely, a reverse split, to maintain Nasdaq listing standards.
We’ve witnessed 89% added to share values of the company over the past month of action, a rally that has pushed up against longer standing distributive pressure in the stock. That said, AMRS has a history of dramatic rallies. In addition, the company has seen an influx in interest of late, with the stock’s recent average trading volume running just shy of 310% beyond its prior sustained average level
Amyris Inc (NASDAQ:AMRS) promulgates itself as a company that Amyris, Inc. provides various alternatives to a range of petroleum-sourced products worldwide.
The company uses its industrial bioscience technology to design microbes primarily yeast, as well as to convert plant-sourced sugars into renewable hydrocarbons. It produces and sells Biofene that converts to squalane, which is used as an emollient in cosmetics and other personal care products; and natural oils and aroma chemicals for the flavors and fragrances market.
The company also provides renewable solvents, polymers, and renewable lubricants for industrial applications; and renewable fuels for transportation fuels market. It has a collaboration partnership with Total S.A. to produce and commercialize Biofene-based diesel and jet fuels.
The company was formerly known as Amyris Biotechnologies, Inc. and changed its name to Amyris, Inc. in June 2010. Amyris, Inc. was founded in 2003 and is headquartered in Emeryville, California.
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According to company materials, AMRS “is the integrated renewable products company that is enabling the world’s leading brands to achieve sustainable growth. Amyris applies its innovative bioscience solutions to convert plant sugars into hydrocarbon molecules, specialty ingredients and consumer products. The company is delivering its products in focused markets, including specialty and performance chemicals, fragrance ingredients, and cosmetic emollients.”
Perhaps the key recent catalyst to emerge in headlines on the stock over the last few weeks in a potential major partnership with a company, the identity of which has been kept confidential, that will help AMRS break into the Asian market and the nutraceuticals and food ingredient supply space.
This relationship follows a series of significant partnerships Amyris has announced in recent months, including a partnership with a separate company in the nutraceuticals space that was announced on September 30, 2016.
“We’re very pleased with the opportunity to partner with one of the leading nutraceutical and food ingredient suppliers in the world. Our current annual revenue run rate of over $100 million combined with the $100 million of annual revenue we expect from this partnership starting in 2017, should help us deliver stronger than expected growth in 2017 and beyond,” said John Melo, Amyris President & CEO.
Continued Melo, “We anticipate that this collaboration will support our short-term results with an expected $10 million in 2016 collaboration funding. The combination of the strong pipeline of products from our new partner, the short-term collaboration payment and anticipated revenue for 2017 and beyond makes this a transformative relationship for our business. We believe the combination of this collaboration and the strong momentum in our underlying business will provide us with what we believe is the largest pipeline of contracted fermentation-based molecules in the world, deliver the highest revenue growth rate in our sector and make us one of the fastest-growing companies in nutraceuticals and food ingredients.”
“We are very pleased with the strong momentum we are realizing from becoming the must-have technology for our partners.”
At this point, as noted above, AMRS is making real money, with trailing revs already coming in at $36.85M, and rounding a clear growth curve, with topline growth coming in at a quarterly y/y increase of 22%.
Amyris remains a dynamic stock that’s showing great resilience. At this time, carrying a capital value in the market of $209.2M, AMRS has a significant war chest ($2.51M) of cash on the books, with total assets a bit less than $110M, which is balanced by an appreciable load ($186.35M) of total accumulated debt. Since volume is showing a clear surge in interest as the stock rises, the company is being effectively encouraged to continue the flow of positive news to push share prices above the key $1 level. It needs to get there and stay there for at least 10 consecutive closes to avoid another 180 day notice. If that doesn’t happen, expect a reverse split. For continuing coverage on $AMRS and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!