Amyris Inc (NASDAQ: AMRS)
Amyris is one of my favorite companies to watch. I started to follow the stock last year, and I was astounded by what I found. With strong collaborations and products hitting the market, the company seems to be on the right path. Recently, I’ve received a few emails from followers asking if I still have the same opinion of the company. In short, the answer is YES! Today, we’ll talk about the three biggest reasons why I’m expecting to see AMRS gains ahead.
Reason #1: Work Done By AMRS In 2016 Will Likely Lead To Massive Profits Ahead
In previous articles, which can be viewed by clicking on the ticker tag link at the top of this article, I made it a point to outline recent collaborations and the potential for these collaborations to turn into revenue for Amyris. Now, the company has products that are starting to hit the market, which will likely turn this revenue potential into a reality.
As a result of these collaborations and launching products, AMRS is expecting to see massive revenue growth over the next 3 years. In fact, the company recently said that it is expecting to grow its revenue to $600 million by the year 2020. That’s a massive jump from the 2017 revenue expectation of $87 million.
Reason #2: Coming Earnings Will Likely Rally The Troops!
Lately, things haven’t been looking great for the stock. Due to recent moves leading to dilution, shorts have been all over this thing for a couple of weeks now. However, I believe that this is going to change very soon. In fact, on March 2nd, AMRS will be releasing its earnings report for the fourth quarter and full year.
This report is likely to be a big one for Amyris. In fact, if the company is able to hit its own projections, it will report a record quarter and full year. It is also expected – by investors and analysts alike – that the company will announce strong guidance, mirroring the path toward the strong growth projections through 2020. If all goes as planned, this report is likely to send the stock skyrocketing as confidence is reinstated in the minds of AMRS investors.
Reason #3: The Books Are About To Get Cleaned!
It’s no secret that AMRS could be doing better when it comes to the books. At the end of the day, there is fat to be trimmed and money to be saved. However, it looks like that’s likely to happen sooner rather than later. Recently, the company announced the appointment of Kathleen Valiasek as the new Chief Financial Officer.
Valiasek is a senior finance and business executive. She brings with her 20 years of experience in assisting start-up, venture-backed, and Fortune 500 companies. This experience will be great for the company, and likely lead to a better overall financial position ahead. In a statement, Valiasek had the following to offer with regard to her new position within the company:
“I’m excited to join Amyris at a time when it is so well positioned as a leader in the sector by nature of its strong technology platform and revenue growth rate… I look forward to leveraging my skill set to continue to improve the company’s operating metrics, balance sheet and financial position.”
Don’t Listen To Me, Listen To The CEO
It’s clear that management at AMRS is incredibly happy about the direction of the company. In fact, in a press release that was released a few days ago, John Melo, President and CEO at AMRS, had the following to offer:
“We are pleased to have achieved a record year of revenue growth, and having completed all of the 2016 strategic milestones we set out too, and we continue to make good progress on our debt structure by having resolved our near-term debt maturity issues in pushing out approximately $44 million in debt as announced just before year end… Also, we are meeting our expectations in securing collaborations that will result in future product sales and this is accelerating our growth rate.
As one of the fastest growing companies in our sector we are now transitioned away from commodity-related product sales, which in 2016 comprised less than one percent of total revenue. During the year, our business was driven by robust product sales growth within the health and nutrition, fragrance and cosmetic ingredients and performance materials markets. This transformation along with growing recognition of our capabilities to disrupt large global markets has led to commercial momentum and more inbound business development inquiries than ever before, which will support another year of record revenue in 2017.
The Bottom Line
The bottom line here is that AMRS is in a position where growth is highly likely. With the strong collaborations the company has been getting involved in, and a continued drive to push toward further success, this stock looks like it’s likely to climb ahead.
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!