Brett Girard, CPA, CA, CFA Novozymes A/S NZYMB-DC PAST TOP PICK Nov 08, 2021

Biotech/specialty chemical company that makes enzymes. Anything for efficiency purposes with better environmental use and lower energy expended. Analysts did not like their 1% drop in sales, but they are doing fine on the food side. Have suffered a lot on the ethanol side because low corn prices have caused the farmers not to be using these enzymes as much. They will be coming out with enzymes that will be used in bio waste, so that landfill sites will not be getting bigger and bigger. Dividend yield of 1.22%.

(A Top Pick Aug 25/16. Down 15.76%.) This got hurt, because they were $.01 short on earnings. The stock is down 25%-30% year-to-date. They make enzymes for pods for detergents, which can be used in cold water and doesn’t require as much detergent and is less pollutant. This has been hurt, because corn prices are down and farmers are not buying enzymes to produce ethanol. 2 years from now, they are going to have new enzymes for clothing that deals with hygiene and odour, a step up from the current pods. They are also doing enzymes for biofuel. There is a new plant being built in Britain to deal with landfill. He still likes this and has been buying more.

(A Top Pick Aug 25/16. Up 4.92%.) YTD this is actually up over 20%, because it was one of the European stocks that bombed last year and was down about 20%-25%. It makes enzymes which are good for the environment. Their next big step forward is going to be biofuels. Strong free cash flow, and overhead is very low. Dividends are growing at about 15%.

Well capitalized but growth has slowed down.
Would buy on weakness.
High risk company given nature of industry.
Positive on future of company.