Amyris Seeing Machines and Randy Baron12 Apr 2022 05:22
Over the past three years, during which I have been part of this group, I have noticed a common concern of many shareholders –-Seeing Machines does not understand the value of PR and does not care about our pain, as shareholders. I have heard this so frequently that on a train trip from Canberra to Sydney, I thought it worthwhile to spend some time and effort to jot my views down. In crux, I agree with the later, that seeing machines is not concerned with the share price in the short term and disagree with the former, that SM does not understand the value of PR. I am going to argue Seeing machines understands that spending money on PR has a direct correlation to share price, but it sees no value in spending those millions, which it needs now urgently to ramp up its engineering resources. Bear with me as this is going to be a long-drawn argument.
I, like some others probably on this board, have worked with DMS and thus the potential of SM is beyond doubt to me. I do invest a bit in synthetic biology (SB), where I don’t have a first-hand knowledge of the engineering, and it was researching the field that I encountered companies like Amyris and Ginko (that the stock Cathie Wood loves).
It’s fascinating how similar they are to the leaders in DMS i.e. SmartEye and Seeing Machines. Just listening to their presentations, you will see what a PR machine Ginko is, and how boring and engineering process heavy Amyris appears.
Ginko has a market cap of 5Billion down from 15 billion in its peak, Amyris is at 1.3 billion less than a tenth.
Amyris did 400 million in revenue, all of it in SB, Ginko did close to 300 mill and most of it not in direct revenues from SB.
Amyris has 14 chemicals produced in commercial scale, Ginko has zero.
To spruce up its balance sheet, Ginko went into covid testing and made probably made millions there. But there is no denying, whom the stock market loves, its dreams and promises. Listen to their presentations, there are mentions to DNA app store and other future revelations, and with Amyris it’s all about manufacturing in scale, yields and product pipelines. It makes sense for Ginko to keep sprucing the markets and award shares to its founders and cash in. The path taken by Amyris is different, it is about sales, building plants and process purity. But how can Amyris survive without paying too much attention to its stock price?
And that brings me to investors like Randy Baron of Pinnacle Investments.
Here is RB making a case for Amyris
https://www.youtube.com/watch?v=zCKxUHfCoQQ
A few things he believes in
We represent 7.5 billion, that long only, which is very important so no shorting no hedging, no derivatives, we are a pure vanilla stock pickers.
I expect management will deliver, what they have promised to deliver and only way this can happen is with the passage of time.
Our average holding period is 5 years, … yes I care about earnings and yes I care about QR but I am looking for things th
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