Top Picks 2007: Josh Wolfe's nanotech bet on Symyx

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Stocks Report.

Symyx Technologies (NASDAQ: SMMX) is the top speculative pick for 2007 from nanotech expert Josh Wolfe. The editor of the Forbes/Wolfe Nanotech Report says, "Santa Clara, California-based Symyx is one of the nanotech materials companies in our model Nanosphere portfolio.

"SMMX is a research services company focused on serving the chemical, energy, pharmaceutical, and electronics industries. It works closely with alliance partners ExxonMobil and Dow Chemical to provide research services, develop and sell discovery tools systems, and license software and intellectual property.

"We believe that the biggest source of value in Symyx is in spin-off opportunities. Two have, in fact, been funded by venture capital firms. In addition, materials that they are commercializing are now coming to market and will earn them royalties on top of the service and hardware revenues they already receive.

"For the four financial quarters ended September 30, 2006, Symyx generated $33 million in cash flow on revenues of $116 million. Revenues for the first nine months of 2006 were up 10% versus the same period in 2005. Symyx shares bottomed just below $20 in October of 2006."