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Non-Tech : Metabolix [MBLX] a Full Disclosure Thread

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From: richardred2/27/2008 1:18:17 PM
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Metabolix Still in Development
Wednesday February 27, 9:44 am ET
By Jason Napodano, CFA

Metabolix, Inc. (NasdaqGM: MBLX - News) is a biotechnology company focused on the development and commercialization of environmentally sustainable, economically attractive alternatives to petrochemical-based plastics, fuels and chemicals. We are pleased to see the company's progress with its lead technology platform, PHA Natural Plastic.

Metabolix is set to commence commercial production of Natural Plastic in December 2008. However, the company is several years away from achieving profitability.

Metabolix is working on the development and commercialization of environmentally sustainable and economically attractive alternatives to petrochemical-based plastics, fuels and chemicals. Metabolix has a key strategic alliance with Archer Daniel Midland (NYSE: ADM - News), one of the world's largest agricultural products processors and industrial fermentors, for the development and commercialization of Natural Plastic.

Metabolix is working on a second technology platform which is being developed for the co-production of Natural Plastic and biomass feedstock. However, this program is still in an early stage of development. It is difficult to value MBLX shares, given its little revenue and negative EPS. Based on our long-term earnings model, we do not see MBLX posting positive EPS over the next several years.

We rate the shares a Hold with a price target of $18. The stock is currently trading at $16.97. A suitable strategic partnership for the switchgrass program could provide upside to the name.

Arpita Dutt, CA, contributed to this report.

Read the full analyst report on MBLX.
biz.yahoo.com
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