twittertopbarlinks_eventstopbarlinks_requesttopbarlinks_archives
Click here for more information about Liqofluxphenometrics515R1
Visit cricatalyst.com!Evodos Separation Technology

Money

Euglena soaring on Japanese stock exchange

May 20, 2013
AlgaeIndustryMagazine.com

Kengo Suzuki, head of Research and Development at Euglena Co., works in the company's laboratory in Tokyo. Euglena, a venture formed by the University of Tokyo, has soared 10-fold this year for the second-best performance on the Tokyo Stock Exchange Mothers Index.

Kengo Suzuki, head of Research and Development at Euglena Co., works in the company’s laboratory in Tokyo. Euglena, a venture formed by the University of Tokyo, has soared 10-fold this year for the second-best performance on the Tokyo Stock Exchange Mothers Index. Photographer: Tomohiro Ohsumi/Bloomberg

Satoshi Kawano & Kanoko Matsuyama report for Bloomberg.com that a Japanese biotech venture focused on making jet fuel from algae is soaring in Tokyo trading as cash being pumped into the economy by the central bank cascades into speculative investments.

“The market expects quantitative and qualitative easing to continue long term, boosting liquidity and drawing investors to speculative shares like biotech,” said Kazuyuki Terao, chief investment officer at Allianz Global Investors Japan.

Euglena, a venture formed by the University of Tokyo, has soared 10-fold this year for the second-best performance on the Tokyo Stock Exchange Mothers Index. The company is developing single-cell algae based products including jet fuel, which it expects to supply steadily by 2018, its President, Mitsuru Izumo, said in an interview.

The venture is currently valued at about 157 billion yen (15.35 million USD) and trades at about 335 times forecast earnings. Still, Japan’s fastest-rising biotech companies have yet to produce steady profit, so the investors’ bets are speculative, said Terao of Allianz Global.

The JASDAQ index had an average price earnings ratio of about 22, based on analyst estimates for the year, while the Tokyo Stock Exchange Mother’s Index, which includes Euglena, averaged about 74 times earnings estimated by analysts, according to data compiled by Bloomberg.

The multiples for many of the companies aren’t prohibitively high, said Tomohiko Ikeno, an analyst at Ace Research Institute. “It is still a good time to invest in some Japanese biotech ventures to hold long term,” Ikeno said. “The stocks will be volatile in the short term, but still have great potential for gains.”

More Like This…

HOME A.I.M. Archives

Copyright ©2010-2017 AlgaeIndustryMagazine.com. All rights reserved. Permission required to reprint this article in its entirety. Must include copyright statement and live hyperlinks. Contact editorial@algaeindustrymagazine.com. A.I.M. accepts unsolicited manuscripts for consideration, and takes no responsibility for the validity of claims made in submitted editorial.

Visit our 2017 International Reader’s Poll Platinum Sponsors

bigelow mbiolp_link sfcc

From The A.I.M. Archives

— Refresh Page for More Choices
Bioenergy-news.com reports that Volkswagen showcased its algae biogas-powered vehicle at a biogas project based in El Torno Chiclana, a town in south-west Spain. The test...
The U.S. Department of Energy’s just released 2016 Billion-Ton Report: Advancing Domestic Resources for a Thriving Bioeconomy summarizes the most recent estimates of pote...
San Francisco biotech startup New Wave Foods aims to address the impact of overfishing, bycatch, water pollution, slave labor, an animal death toll in the trillions, and ...
Algae.Tec has announced that, with the completion of the US$1M injection by Gencore, their nutraceutical plant upgrade in Cummings, Georgia, is progressing ahead of sched...
Jason Smith reports for undercurrentnews that Kentucky-based Alltech is willing to invest in overseas algae production plants closer to its feed customers if demand for i...
Haley Gray reports for 5280.com that Upslope Brewing Company, in Boulder, Colorado, is one step closer to its goal of becoming a zero-waste brewery. The craft beer maker ...
A Quebec-based company that specializes in the manufacturing and commercialization of marine and seaweed-based products for agriculture and horticulture constructed a new...
Diane Stopyra writes in Salon.com that a growing number of coastal states around the country are undertaking large-scale seaweed farming projects. While farms are underwa...
Almost two years ago, on June 28, 2015, the rocket carrying experiments from Chatfield High School to the International Space Station disintegrated 139 seconds into its f...
WesTech Engineering, Inc. and Utah State University’s Sustainable Waste-to-Bioproducts Engineering Center (SWBEC) are jointly engaged in developing processes for more eff...
The U.S. Department of Energy (DOE) has announced the selection of three projects to receive up to $8 million, aimed at reducing the costs of producing algal biofuels and...
Carlsbad-based Surftech, a stand-up paddle (SUP) and Surfboard manufacturing company has announced its collaboration with BLOOM, a materials development company, to devel...