NTRZ: Up 30% in 24 hours

I found these public domain comments from Tom Bishop, editor of BI Research. But with a 30% win in less then 24 hours, maybe some of you should consider sending him $95 for a one year subscription:



“Rice is the most consumed grain on the planet; it is a primary food source for 70% of the world’s population,” says small cap growth stock expert Tom Bishop. “Yet 65% of its nutritional value is in the bran covering that is routinely stripped off.

For those comfortable with the high risks inherent in a small cap speculation, the editor of BI Research reviews Nutrecea (NASDAQ: NTRZ), which offers a patent technology that preserves these nutrients.

“NutraCea had developed a patent protected technology that stabilizes rice bran into an FDA certified edible product, leaving the nutritional value of the bran intact and with a shelf life of 1 to 3 years.

“There is tremendous interest in this highly nutritional product, especially from humanitarian relief organizations, the nutraceutical industry and both human and animal food companies. NutraCea’s technology stabilizes the rice bran

“Over 150 projects are currently ongoing around the world, many in advanced stages, to utilize SRB in such products. The current customer roster has 187 customers, including the likes of General Mills, Pepperidge Farms, Con Agra, Archer Daniels Midland and Purina.

“To cut to the chase, NutraCea is facing demand that is expected to exceed its ability to supply it for years to come. It is currently crossing the threshold of profitability and expanding like crazy as it rides a wave of awareness regarding the value of stabilized rice bran for humanitarian aid and as an additive to breads, cereals, diet/nutrition supplements and animal food.

“One factor at play here is the rising cost of grain, corn in particular. Its price has been driven up substantially due to its use in making ethanol, prompting even more interest in substituting partially with something less expensive and even more nutritional.

“To some extent the company’s capacity has been holding it back from being able to pursue and attract some of the large opportunities out there. To address, the company announced a $50 million private equity financing at $2.50 (with half a warrant at $3.25).

“Nutracea is not balking at adding all this capacity; the company has raised $50 million and these funds will be used for further expansion that will come on line in 2008 and will include the construction of one or more plants in Europe. Meanwhile, NutraCea has no debt.

“Gross margin is expected to run at nearly 50%. There is a lot to like here. Oh, and Monsanto owns 5%. With a story like this and growth like that, plus a PE of 30 on 2007 EPS and 14 on 2008, we rate NTRZ a buy to $4.”

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