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What do insiders and hedgefunds know about Amyris that we don't?


July 17, 2012 - Vancouver

The volume and trading activity at biofuel biotech Amyris, Inc. (NASDAQ:AMRS) has been on the rise as speculators are looking towards the firm's July 31st earnings call as a possible trading catalyst that could send shares bouncing hard off the current price bottom levels.

Insiders and Wall Street hedge funds have been buying a record number of shares in the open market, even as retail buyers appear uncertain despite a recently revised business plan which formally moved Amyris into commercialproduction.

The consolidation which has shares currently bouncing off the $3 level has attracted the attention of biotech writers and contributors who insist that those funds and insiders must know something that the rest of the market doesn't. (See a recently posted video report on AMRS at: http://bit.ly/bottombouncer )

The company, which uses its industrial synthetic biology platform to modify microorganisms, primarily yeast, to convert plant-sourced sugars into a variety of hydrocarbonmolecules is also involved in the sale of ethanol and ethanol blended gasoline to wholesale customers. Investors were excited to see an airline company make a successful demonstration flight using the advanced renewable jet fuel produced from Brazilian sugarcane by Amyris, but the entire biofuels sector has been struggling to climb higher, despite recent endorsements from Rupert Murdoch who sees the advances in the sector as a reason to be bullish about the U.S. economy.

Like Solazyme (Nasdaq: SZYM), a similar company that makes various cosmetic, nutritional, chemical, and fuel oils by feeding plant-based sugars to patented microalgae, Amyris' technology also appears to hold enormous potential, especially for a country whose leadershipseeks more energy independence. In fact, both firms have been given large contracts by U.S. government agencies, but Wall Street has not liked previous earnings reports, and thus, the bumpy rides for both equities despite their recent rallies.

Other biofuel competitors like KiOR (Nasdaq: KIOR) and Gevo (Nasdaq: GEVO) all saw shares trade down after an analyst simply downgraded Solazyme because the stock passed the $14 price point he had set earlier. That curious reasoning for the downgrade still sent many stocks in the sector lower a couple of weeks ago, even as many were just starting to catch traction.

For now, the recent insider and smart money buying activity both speaks volumes and has volume in the stock picking up. As the saying goes: "Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise." With an upcoming earnings catalyst in play, it will be interesting to see if those in the know, know best.


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