Solazyme, Inc. (NASDAQ:SZYM) Gets Volatile This Week

[[tagnumber 0]]Solazyme, Inc. (NASDAQ:SZYM) opened the market with a huge gap yesterday while the trading volume reached the highest levels for the past two weeks. SZYM is announcing earnings after market close today and the stock could get even more volatile by the end of the week.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]SZYM opened above the 10– and 20–day moving average on Wednesday and volatility was huge as during the session the share price touched the upper Bollinger band. The stock closed then at $3.06 which represents a 15.47% gain from the previous close. Trading exploded as well with over 4.2 million traded shares.[[tagnumber 1]] [[tagnumber 0]]Earlier this week, the company issued a press release that got the attention of traders to increase the hype before the second quarter earnings are announced today. According to the PR, SZYM is starting to commercialize its first surfactant made of renewable micro–algae oil. However, the product will be sold by BASF under the trade name Dehyton AO 45 and it will be produced using SZYM technology.[[tagnumber 1]] [[tagnumber 9]][[tagnumber 10]][[tagnumber 1]] [[tagnumber 0]]The statement does not tell any financial details about the conditions under which the two companies will work together, and what will be the benefits of SZYM from this partnership. Hopefully, there will be more data in the second quarter 10–Q coming out today.[[tagnumber 1]] [[tagnumber 0]]Technically, SZYM could break above the higher Bollinger band as technical indicators give bullish signals for today, yet longer–term the stock is more likely to lose value. The company is still not making any profits and it has $200 million in convertible debt outstanding which is a considerable risk of dilution for shareholders.[[tagnumber 1]] [[tagnumber 9]] [[tagnumber 1]]