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Obama's New Favorite Energy Stock
By: StreetAuthority   Friday, February 24, 2012 2:04 PM
Symbols: UL, XOM


I've written about the company's promise in my Game-Changing Stocks newsletter since before its shares even went on the market. (And, not to put to fine a point on it, but I've also long said the president would use ARPA-E findings on the campaign trail.)

Why do I say the president already knows algae works?

Because Solazyme is already selling fuel to the U.S. Navy -- also to United Airlines (NYSE: UAL).

The company also sells other products made from the various oils it derives from algae. Its biggest customer for these oils is the giant European personal goods company Unilever (NYSE: UL). It uses these oils to market a popular algae-based skin care line sold at Sephora, one of the nation's leading cosmetics retailers. It even has a foods division that makes flour from algae.
 
Now, can algae deliver the fuel of the future? That's the wrong question.

It's the wrong question because we already know the answer -- yes, it can -- and Mr. Obama knows it. So do investors who are buying shares of Solazyme and the analysts who are slapping "outperform" ratings on the stock.

Risks to Consider: I typically recommend most investors reserve 20% of their portfolio for stocks like Solazyme. You have to be willing to tolerate some volatility -- but the rewards can be tremendous.

Action to Take --> Do your own algae study. Check out what this exciting company is doing. (You can read about it in my newsletter, Game-Changing Stocks, where I covered Solazyme in a recent issue.)

After you take a look, I think you'll see what I see -- which is that these shares were made for aggressive growth investors with a long-term time frame to reap outsized returns.


--Andy Obermueller

Andy Obermueller does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.

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