Stockchase Opinions

Robert McWhirter Burcon Nutrascience Corp. BU-T BUY Sep 30, 2019

Plant based protein from soy and peas. The new method for extracting protein will be used in a new plant in Canada. They have well over 100 patents related to protein extraction from various plants. The plant will go into production at the end of 2020.
$1.600

Stock price when the opinion was issued

food processing
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A protein play. The world is protein short and we get our protein from animals. They have the patent technology for extracting the protein out of the canola husk and dissolving it in soft drinks etc.
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Has a process for extracting protein from vegetable oils in canola. World today is protein short. Waiting for FDA to give approval. Affiliated and receiving royalties from Archer Daniels Midland (ADM-N).
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Gets proteins cheaply to the world. Have about 40 unique protein isolate patents for extracting protein from canola. Have recently found a way to isolate protein from soy and have applied for patents.
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(A Top Pick June 26/08.) Down 8.66%.) Vegetable protein extraction. Lots of patents, which have significant value. What they are doing in soy is world beating and hasn't been picked up and appreciated yet by the street.
RISKY
Extracts protein from canola. Hopefully will see some results before the end of the year regarding their application to the US government to be able to put their product into food. Recently announced they were able to extract protein from soy also.
RISKY

They extract protein from soy and peas. They announced they are building a plant in Manitoba. The BeyondMeat trend is helping them. Analysts are still projecting losses in 2021, so you are buying into the expectation of future growth.

WATCH

The valuation is super cheap compared to, say, Beyond Meat. This just entered a joint venture (https://www.bctechnology.com/news/2020/9/2/Burcon-NutraScience-Joint-Venture-Company-Merit-Functional-Foods-Announces-Close-of-30-million-Investment-from-new-Equity-Partner-Bunge.cfm). This will attract investors when revenues and cash flow become strong. The stock has been doing well as people buy more plant-based protein, a huge business now. Definitely one to watch.

COMMENT
They are considered to be one of the leaders of the group but he has not looked at this stock in a long time.
DON'T BUY
Extracts protein from vegetables like canola, peas, and soy. Has 285 patents. There is negligible revenue despite the company being around for more than 20 years. Difficult to apply fundamental analysis. Too speculative for him. Need to see revenue and profit.