Ceapro Inc. (CZO.V)

(A Top Pick Aug 19/16. Down 7.53%.) They are consolidating. Just announced that they are opening a new facility in Edmonton. Have attracted some funding to be able to do some research in the new technology they are coming out with. He is keen on this.

They extract beta glucan from oats. It is supposed to be anti-aging, healing and goes into their products. They have ramped up earnings tremendously over the last few quarters. They just opened a new facility that can do 10 times the production.

(A Top Pick July 4/16. Up 32.68%.) Has some very interesting patented technologies which removes an active ingredient from oats which is used in moisturizers. They also have a PGX technology that enables them to offer that product in a powder form. Growing their top and bottom lines very well. Has a new plant that should increase productivity 10X.

Growing their top and bottom lines very well and are in a very, very interesting space. What he likes most is that their technology is patented, so they are able to license it out and collect royalties, as well as producing the products.

This sounds a bit sensible. Lots of imagination. It is probably very good, but you have to check with him again in the month’s time after he has had a look at it.

Doesn’t follow this company, but only knows about up because it has gone up so much. Basically, they are using oats and bran malt for different applications, biotech, cosmetics, etc. Very early stage. Revenue growth is very, very high, but it is coming from a very small base. Revenue expectations are in the $20 million range, on a market cap of $145 million. Expectations are so high here, it’s early stage, and it’s a developing company. Investors need a splash of cold water, because they have jacked up the price so high. A decent little company, but just a crazy valuation.

The appeal of the stock is that it is in a non-cyclical industry. Has a proprietary process where they extract the good stuff from oatmeal. Also, has some other interesting technology. Has a new plant, which will increase their capacity by a factor of 10, which he expects to be up by the end of the year. Will be running the old plant to do custom work. Thinks there are pretty good barriers to entry. Upcoming earnings are supposed to be good, with acceleration into the 2^nd half of the year. You should see this doing well on a 3-year basis.

A very, very interesting company. Burt’s Bees, Aveeno and Neutrogena are some of its products. Has done an incredible job in the last 5 quarters. Revenue has gone from $1.7 million to $2.4 million to $3 million to $4 million last quarter, and income has risen quite a bit as well. There are no analysts looking at this now. Market cap has gotten over $100 million. Has a joint venture with a large German company. Thinks the next couple of quarters are going to be extremely good for them. Production is in Cdn$, but income is in US$.

Biotech name. They are into a whole lot of different things involved in taking natural ingredients and commercializing them. This is a very interesting junior company.

He likes that they have a patented process for extracting an active ingredient from oats for animal and human healthcare products. They had a huge run and are consolidating now. There is plenty of upside for them such as in the last year.