Pseudo Green company Codexis which makes enzymes for use in the pharma and biofuel industry managed a strong performance on Friday to close up 8% higher from its IPO prices of $13.

Like the other green IPO A123 Systems this company does not have great financials with losses in the last 2-3 years and prospective losses for the next 2-3 years as well. Both of these companies claim to have great technology to solve critical problems in the fields of transportation in a clean manner.

Note after the initial euphoria A123 system stock price languishes at its IPO prices down almost 60% from its peak as there is little near term prospects of profits as investors cashed in after the initial 1 year lock in period.

While Codexis received a tepid response compared to A123 systems , the current market cap of $477 million seems too high given its super high risky character.Company seems completely dependent on Shell which remains a major investor and its main customer.I don’t have expertise in understanding it core business whether it is a truly path breaking technology. However the main factor supporting the Codexis story is Shell .If Shell continues to support Codexis and its partnership with Brazilian sugar company Cosan uses Codexis technology to make a big biofuel commitment then this stock would be a great one.However I would wait since some of these companies can take a long time in translating promises into reality.