BioExx Specialty Proteins Ltd.

BXI-T

Protein company out of Saskatchewan. This had been his biggest Short until not too long ago. He is sceptical about the whole protein area.

Have a proven and innovative project to separate proteins from canola but in terms of manufacturing is going to have to get its yield up and they are having trouble executing. Also running a little short on cash. High risk.

Extract high-value proteins from canola. Have had a lot of start-up problems and also had to raise money at $1 a share. Prefers buying stocks that have no problems.

Extract protein from canola. Attempting to get to commercial levels of production. Initially had some problems with foaming in the process. Once they are back up in production there'll be moving to a 2nd shift, which allows them to pull Level 1 proteins. Real earnings come when they start pulling a much more valuable part of proteins. This will take $10 million of CapX and a year of development. Sold his holdings.

Recently did an issue around $1 and the market slaughtered the stock. Sold his holdings. Wouldn't Buy right now as it has had a bit of a dead cat bounce.

Specialty proteins. Was long on the stock when they were delivering positive results. They are going to have to continue to raise more money. He is short the stock. Until they can prove they can produce the protein isolates in commercial volumes, he would stay away.

(A Top Pick Oct 15/10. Down 65.03%.) Extracting protein out of canola. Moving in the right direction, but they slipped on the time element and they got pounded. Believes the market potential is large.

Expected to lose $0.07 in 2011 and earn anywhere from $0.01 on a median basis to $0.03 on an average basis, which puts it at 60X PE multiple. If successful in being able to produce commercial quantities, they will start construction of the 2nd plant in N. Dak and looking out will double expansion again.

One of his biggest shorts which he covered a couple of weeks ago. He is hoping it gets back up so he can put his shorts back on it. It’s a terrific company but promoters drive the price up.

Assuming they can get the frothing part of the manufacturing process under control it will be quite attractive. Extract protein from canola. It can be used in baking and cooking. By end of year they should be up to speed. Loss of 6 cents for 2011 and earnings of 3 cents for 2012. Once production comes up to speed they will break ground on a second plant in North Dakota. On a 3-5 year basis, someone like VT might get interested in the company. Was a recent price hike in protein prices.

New process for extracting protein from canola seed. Pilot project was successful. Always hesitant when companies are going from pilot stage to full production. It always takes longer and is more costly than is expected. Once it is proven that it is expected, that would be the time to Buy. (Has a Short position.)

Has been engaged in a large scientific experiment over the last couple of years and appears to going quite well. Essentially turning canola seed into protein and extracting the protein isolates. They think they can get a 90% yield. (Has a very small position.)

Extracts protein and oil from canola. Plant is just ramping up to production. Recently scaled back his holdings, partly due to analysts shaving back earnings estimates by about 15% in the last 90 days and also 2011 being forecast as just break-even. Expects the 2nd plant in North Dakota will be built.

Fairly heavily promoted stock, so there’s been a lot of push on it. Not particularly cheap and there’s still execution risks.

2010 has been a very eventful year. Brought Saskatoon plant into production and now going into continuous production, which has to continue for 2 months before they can sell product into the food industry and the market is nervous. Very important milestone. Also looking to add a 2nd plant in 2011, which will require more capital.

Patented process to isolate protein isolates using canola as the feedstock. Have gone through most of the trial phases. Product will be in very high demand and expects to have significant orders by year-end.

High-risk security. Has methodology to extract high purity protein from canola oil. Believes several catalysts over the next several months will move shares higher. Potential to hit $3.50 by year-end.

Plant came on stream recently and they are getting the grades of protein that they needed. His problem is that there is a lot of financing creating a lot of dilution. Not sure what the reward would be to him as an investor.

Process vegetable and canola oil. Hit a 52-week high today because they recently completed the 1st run from beginning to end within the plant. Expected to start the 2nd plant in North Dakota.

Going from pre-production into production of proteins so you are going to get a couple of lumpy quarters. Still in a risky stage so only Buy a third of your position for the time being. Give it a couple of more quarters. He is looking at this one.

Doing a cold process to crush canola to extract protein. Was concerned when they announced a 2nd facility before the 1st was working. It now looks like things are working pretty well. Margins they could earn are quite substantial.

Currently processing canola and extracting proteins. Management is confident they will hit end of July target and will start producing high quality proteins (Icelets?), which are extremely high margin. Expecting confidence in investors by year-end. Starting a 2nd plant in North Dakota.

(Market Call Minute.) Innovative production process. High value product.

Now moving from pilot project towards commercial production. Recently raised money. Expecting to know in the 2nd quarter if they can achieve production. 2nd step will be if they can get the same results consistently that they had in their pilot followed by a look at margins. High risk.

Extracts oil/protein meal from canola. Have to get equipment into the plant for commercial production on extraction of high margin/high concentration protein (Isolets?) by the end of May but could be delayed by a month or so. Just did a financing of $15 million at $1.85. Historically have done well with financing and the stock has moved up. Wait for stock to start moving up ($2.25?).

It’s a breakthrough business. A kind of biotech company. They have been hitting their milestones. Now they are moving to execution. The risk is more engineering and execution than technology. Believes the management team is determined. Seem to be on the right path. The sales cycle for these products is quite long.

Speculative company. He is watching it closely, waiting for the first profitable quarter or two.

Another typical company he would buy because it does not have earnings but there is a lot of upside as they are trying to get higher protein out of canola seed through their patented process. Will see this come to fruition in the next 6 to 9 months or so.

Good proprietary process that can generate high-value proteins and nutrients. Still in the ramp-up stage regarding production so it will take a little while. Could easily double in 12 months if they are able to execute their plan.

(Market Call Minute.) Moving towards extracting canola protein and results are expected in March.

Extraction of proteins from canola. Revenues aren't quite there yet and technology is not really proven on a mass scale yet so you have to be a little bit careful. Have to wait about 1 year for the revenues to get some traction. Speculative.

Crushes canola to extract oil and then has to extract protein. The big margins occur when they extract isolets. Expecting to have equipment in place and producing commercial volumes in Q1 of 2010. If successful $2 per share would be a good price because of the lower risk. The real key is between Jan/10 and March/10. Reasonable speculation for a toe in the water.

Getting plants up for traction of proteins from canola oil and have their first one up and running and announced the 2nd one in North Dakota. If they get 2 or 3 plants up and running in the next couple of years, you could see a $2.50 or $3 stock.

Protein extraction through canola seeds. Have been successful in getting their Saskatchewan plant going and are now doing the same thing in North Dakota. Likes the industry and the space. (See Top Picks.)

Canola oil. Must go through 3 phases of production between now and the end of the year. Now in the 1st phase. Should be a 50% ROE in the 2nd phase. In the 3rd phase they should be able to pull out protein and should give 100% ROE. Their advantage is a low temperatures solvent giving them lower operating costs and better protein. Very speculative.

Patented low-temperature extraction technology to get protein out of canola. Getting protein out of vegetables is attractive as it brings costs down. Just put a plant on stream, which will be generating cash flow. Talk of a 2nd plant.

Announced all their canola oil is going to be accounted from their new Saskatchewan plant. Has just been listed for 2 years. He does not buy anything on the Venture or hasn't been listed or 10 years. Too much of a crapshoot.