Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Heckmann Corporation (HEK), Solazyme Inc (SZYM): Are These Stocks Speculative In Nature?

Page 1 of 2

Simple investments, with easy to understand investment theses, are one of the best ways to make consistently long-term profits in the stock market. And while I am a firm believer in this investment strategy, there is nothing wrong with the occasional bet on a well-researched speculative stock. Once a portfolio of lower-risk investments has been established, investing a small percentage of your money in a Powerball-like stock could be well worth your time and money. Below are three oil-related speculative investments I currently have marked on my watch list for further research:

HeckmanSpeculative Oil Services is a speculative play on the oil and natural gas revolution occurring in the United States thanks to hydraulic fracturing (fracking): the process of using pressurized water and chemicals to release oil and natural gas from rocks. Fracking is a controversial process among environmental groups who are worried about (among other things) the waste water created during the fracking process. That is where Heckmann comes into play as an environmental service company that is contracted by oil and gas exploration companies to transport, treat, dispose, and recycle waste water from drill sites all over America.

Heckmann Corporation (NYSE:HEK) began its life in 2007 as a `blank check’ company formed by Richard Heckman; a company with no actual business activities. Early investors in Heckmann Corporation (NYSE:HEK) were essentially investing in the CEO’s money-making track record, rather than an actual company. And an impressive track record Richard Heckmann has had over the years. In the 1990s, Heckmann was the founder and CEO of United States Filter Corporation, which under his leadership was acquired in 1999 at a price about 14 times higher than its 1991 IPO price. He similarly sold sporting goods maker K2 in 2007 to Jarden, shortly before forming Heckmann Corporation (NYSE:HEK). Richard Heckmann has certainly proven himself in the past. In just a few short years Mr. Heckmann has turned nothing into a company poised to benefit from the immense opportunity that is the US oil renaissance. Still a speculative company, but not a bad job thus far.

Speculative Renewable Oil When talking about Solazyme Inc (NASDAQ:SZYM), people often use “biofuel” to describe the company’s business activities. And while Solazyme Inc (NASDAQ:SZYM) is involved in biofuels, that description alone does not do the company justice. Solazyme is a renewable oil company; in all of oil’s various uses. Using its “indirect photosynthesis” process, Solazyme harnesses the power of nature’s greatest oil producers (microalgae) to create oils that are tailored specifically for (1) vehicle fuels, (2) industrial chemicals, (3) personal care and cosmetics chemicals or even (4) food products. Solazyme Inc (NASDAQ:SZYM)’s addressable market is much larger than simply a renewable source of gasoline.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!