Business

Senomyx: Salty Sweet Stock Report

thefadd.

Posted to Business on Thu May 01, 2008 at 06:52:17 AM EST (promoted by port1080). RSS.

A hot new company for investment is Senomyx. They've scored major contracts with food suppliers such as Nestle, Kraft, and Coca Cola. Their earnings are looking good and they're pouring money back into research and development.

Research and development of what? Among other things, how to manipulate your taste buds with chemicals that get listed on an ingredients label as artificial flavors thanks to a favorable FDA decision two years ago. A company spokesperson termed this, "helping companies clean up their labels." Developed from human genome research, the net effect of one of their recent releases has been to reduce the amount of sodium needed to make processed foods taste good to the consumer. Still, experts warn that the effect of these chemicals hasn't been fully tested.

Tags: edited by Port1080, written by thefadd, food (all tags)

This story: 19 comments (4 from subqueue)
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1

be very careful

wetkarma.

Thu May 01, 2008 at 10:12:19 AM EST

5.00 (astute, astute)

So call me paranoid, but TnT editors should be careful in running stories which can be seen as recommendations to buy a particular stock. At minimum you want to put a safe harbor statement at the bottom of the story that the story is NOT a recommendation on the part of TnT to buy/sell a particular security.

The SEC if it felt frisky could easily fine the directors into oblivion if any of the directors bought/trades in this security ahead of running the story.

Memory is a strange bell, jubilee and knell.

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Re: be very careful

port1080.

Thu May 01, 2008 at 11:47:49 AM EST

none

Eh, maybe too paranoid?  The article doesn't take a side, really - it starts out upbeat but ends by pointing out a number of possible downsides of this product.  If the AP runs an article on Vioxx, does it include a disclaimer about not buying Merck stock?  I just don't see what you're seeing here.

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Re: be very careful

thefadd.

Thu May 01, 2008 at 01:24:59 PM EST

none

Yeah, I initially wanted to make it sort of like a parody where I talked up how fabulously the company was performing but then cut that with hippie talk about what an awful no good terrible product they were peddling. Separately, then I also decided I didn't want to go off with too much negative which kinda defeated my initial concept. The upshot is lots more stock talk and lots less of the super fun time chemicals on your palate talk.

Anyway, I try to look for things without "artificial flavors" and "natural spices" in their ingredients and this will only make me re-double my efforts. At least things with nutra sweet and aspartame are labeled that way.

It is easy to buy small plaster models of what you think life is like.

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Re: be very careful

ivyafire.

Thu May 01, 2008 at 02:15:00 PM EST

none

This is the part that bugs me the most.  If the ingredients are safe, as they claim, then why do they hide them under euphemisms?

I don't like sneaky behavior, and the more they try to hide things, the more suspicious I become.  

"It was an ancient rule of Hawaiians that no one should hurt another bodily, or through theft of goods or through injury to feelings.These were the only sins."

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Re: be very careful

thefadd.

Thu May 01, 2008 at 02:23:40 PM EST

none

Well, they're not safe. I have no need for any chemicals in my body. But they're not "hiding" anything, they're just "helping their clients clean up their labels." ;-)

It is easy to buy small plaster models of what you think life is like.

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Re: be very careful

ivyafire.

Thu May 01, 2008 at 05:14:56 PM EST

none

right.

"It was an ancient rule of Hawaiians that no one should hurt another bodily, or through theft of goods or through injury to feelings.These were the only sins."

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Re: be very careful

MC Nally.

Thu May 01, 2008 at 08:56:15 PM EST

none

I have no need for any chemicals in my body.
Your body is chemicals.

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Re: be very careful

thefadd.

Fri May 02, 2008 at 12:03:58 PM EST

none

Really? Wow. You're blowing my mind here, man.

It is easy to buy small plaster models of what you think life is like.

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Re: be very careful

JimmyHavok.

Thu May 01, 2008 at 09:07:56 PM EST

none

I have no need for any chemicals in my body.

Are you a metaphysical spirit?  Your body, like all matter, is composed entirely of chemicals.

Still, I'm as suspicious of these industrial concoctions as you are.  After the melamine/gluten scandal I worry about anything that comes from a country with negative regulation, and that means pretty much every industrially produced additive to our food and drugs.

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Re: be very careful

postillion.

Thu May 01, 2008 at 02:57:40 PM EST

none

"The ability to reduce sugar, salt, or artificial flavoring without sacrificing taste is a huge opportunity in this health-conscious society," says Robin Manners West of New Mexico's State Investment Council, which has purchased shares.

I would say we've already sacrificed taste in a nation where the majority of the people want their food oversweet, oversalted or overfatty.

I was recently saying to a friend in a discussion about education that we live in a nation where all resources are like economic wealth: 10% gets a disproportionate share and the rest of the nation gets too little or lower quality education.  

When I think about food, I think it's staggering how much good food is available on the West Coast, and how little good food is available elsewhere.

 

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Re: be very careful

thefadd.

Thu May 01, 2008 at 06:07:31 PM EST

none

Where on the west coast? Certainly not LA, lol.

It is easy to buy small plaster models of what you think life is like.

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Re: be very careful

postillion.

Thu May 01, 2008 at 06:30:39 PM EST

none

In San Francisco, at least, the produce is crazy good and reasonably priced for the quality of the food.

And the local food movement has produced all sorts of artisanal food categories including fine chocolate, local cheese, amazing bakeries (as long as you are not looking for more East European/Jewish breads... I do miss my bagels, challah, rye, pumpernickel), local dairies, local yogurt-makers, and even organic chicken rotisserie trucks that show up at the farmer's market here (along with the lady who sells fresh kettle corn).

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Re: be very careful

MC Nally.

Thu May 01, 2008 at 09:00:13 PM EST

none

If the ingredients are safe, as they claim, then why do they hide them under euphemisms?
Have you ever seen the gag where an interviewer goes up and starts asking people if they're aware of the dangers of "dihydrogen monoxide"?

I'm not claiming that these food additives are safe (far from it) but I don't agree with your reasoning.  I believe there are plenty of legitimate reasons why manufacturers of even a perfectly safe product (well, actually there's no such thing, but you know what I mean) might want to give it a consumer-friendly brand name.

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Re: be very careful

JimmyHavok.

Thu May 01, 2008 at 09:03:00 PM EST

none

I agree 100% with wetkarma.  The intro looks exactly like a pump-and-dump come-on.

Discussions of chemistry are OK with me.  Anything that even looks like a stock tip is not.

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Re: be very careful

postillion.

Fri May 02, 2008 at 12:03:07 AM EST

none

Even though this isn't about a stock tip, certainly Senomyx is being financed by food companies with mostly business interests at heart.  I doubt that Coca Cola, Campbell, Kraft and Nestle care about food as much as they do about business. It's not merely that they are using Senomyx's products; these companies actually financed $30 million for Senomyx's research (one of the links in the sub to the New York Times story).

It's like every other time when the doctors have tried to tell Americans to live healthier.  Rather than actually modifying our habits, companies come out with new products and tell us that consuming the new products will let us live in exactly the same way: overeating, not exercising, not eating enough fresh produce.  

Yet, research across diets throughout different nations all show that eating the traditional diet (homecooked meals of a variety of different ingredients) is key to good health.  Unfortunately for food companies, this might mean their stocks would fall.

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Re: be very careful

port1080.

Fri May 02, 2008 at 06:29:48 AM EST

none

Again, it's a parody - I don't see how anyone who actually took the time to read the article would view it as a pump and dump.  Then again, considering the state of the US stock market, asking for reading comprehension from stock traders might be a little much...

2

WWJCD -- What Would Jim Cramer Do?

MayorBob.

Thu May 01, 2008 at 10:14:13 AM EST

5.00 (informative)

Here's a look at the company profile. Does this look like a buy, sell, hold, or stay the fuck away from this puppy?

Illegitimi non carborundum.

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Re: WWJCD -- What Would Jim Cramer Do?

postillion.

Thu May 01, 2008 at 02:06:42 PM EST

none

I would think that food company stocks are generally somewhat fickle.  It's like the time when every single major food company decided to spend tons of money launching products for the South Beach diet.  

Unfortunately, they were so behind the curb on trends that by the time they generated, tested, and then taste-tested their products, the South Beach moment was over....except in grocery aisles.  

And any edible chemical company stock could plummet immediately if there's bad media or if the masses somehow generate an urban legend about it.

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Re: WWJCD -- What Would Jim Cramer Do?

JimmyHavok.

Thu May 01, 2008 at 09:10:03 PM EST

none

Jim Cramer would yell and wave his arms and say something completely random while telling you how awesome he is.  "Bear Stearns is solid!"

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