DNMR - Danimer Scientific Tanked Today: Is It Still a Buy?
It requires a lot of capital to grow a company, especially one that's on the cutting edge of an industry. And sometimes getting cash requires some short-term pain so the company, and its shareholders, can benefit from the long-term benefit of the investments being made. That's the big-picture story behind Danimer Scientific 's (NYSE: DNMR) stock drop today. Here's some details that will help you get a better handle on today's somewhat frightening 20.1% move.
Danimer Scientific makes biodegradable and compostable plastics. That fits very well with the focus on sustainability that's increasingly driving investors today. And it already has a host of major customers, including PepsiCo , Nestle , and Walmart . These are some of the biggest users of plastic in the world, and they, along with many others, are looking for ways to reduce their environmental impact. In addition to these relationships, Danimer announced an alliance with Chevron Phillips in September to develop lower-cost biodegradable polymer manufacturing methods. And in August, it closed the acquisition of Novomer, a maker of biodegradable polymers. This is a company that is clearly working to grow in an interesting space with material long-term opportunity.
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Danimer Scientific Tanked Today: Is It Still a Buy?