3SOF

STKL(nasdaq) - SunOpta Inc..

Mkt Cap:           566.71M
Float:                  49.40M

Profile:  SunOpta is a rapidly growing, vertically integrated company with extensive expertise in sourcing, processing, packaging and distributing natural, organic and specialty foods. The Company has three high-growth ethical business segments focused on a healthy products portfolio that promotes environmental responsibility and the health and well-being of its communities.

The largest operating group, the SunOpta Food Group, represents over 90% of annual revenues and is focused on the fast growing natural, organic and specialty foods markets.  Opta Minerals Inc. (TSX: OPM – 70.6% owned by SunOpta) represents approximately 9% of annual revenues and is focused on processing and recycling abrasive and industrial minerals.  The SunOpta BioProcess Group represents approximately 1% of revenue and is focused on the processing of biomass for the production of cellulosic ethanol and other bio-products.

website: http://www.sunopta.com/


The Quick - STKL has a connection to ethanol, superb fundamentals and chart shows a sustained volume pickup and breakout out of an ascending channel.  Earnings coming up and we must have a position before this runs away.  


Fundamentals

This company has an excellent website full of information.  Make sure you visit!  Here are some very helpful .pdf documents the company has provided to illustrate their amazing fundamentals.

Links:
http://www.sunopta.com/Assets/STKLQ405Final.pdf
http://www.sunopta.com/Assets/pdf/2005_AR.pdf

This company has grown steadily!  Increasing revenues.. and increasing shareholder value on a consistent basis!

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=20267)


Technicals

Long-term

On the long-term chart we see recent heavy sustained volume..  a huge signal that STKL is about to get very dynamic and defy gravity.  The buildup is occurring just underneath the all-time high.  Its time to breakout!

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=20266)
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Short-term

On the short term-chart the heavy volume has translated into an ascending channel breakout.. which may test the top of the channel trendline soon... giving us a great entry!  ;)  Clear support in place from the channel, 9ema, 20ema, magenta trendline.

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=20265)
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Trade Plan

STKL has Q1 earnings on Tuesday, May 2nd 2006 after the close of the market.  No one can say how earnings will go but as of right now we are planning to hold over earnings.  STKL has an impressive track record of consistent growth.. and has a powerful chart indicating to us that big money is trying to take a position before the release.  Holding over earnings is very risky...  be aware.

Support is in place below in case our timing is incorrect.  We will set an exit plan after we have our position.  We must have this planned because no matter how great a trade looks to you.. it is the market that is boss!

Entry:  Our entry will have 2 parts.  We will try to buy @ limit 9.65 in the morning.  If this does not execute we will buy at the market after 12pm.  The main idea.. we want to have a position.

We will buy STKL according to plan on 4/27

-G

Hey G, looks like your order got filled, I think that's close to today's bottom, nice trade!

It is important to realize that this is a very diversified company.  Their organic food products are supermarket staples as well as seen in specialty stores, like Trader Joes.

However,  this is being pumped as an Ethanol play all over, even though it is a tiny part of their operation and will likely react to the drop in oil prices.

I would wait until oil settles down for a while.  It is at the top of the chart right now at over $75.  All the ethanol stocks have looked great over the past few months and this went along for the ride.  It is a boring, profitable food company, but it looks like it went for the ride with the ethanol stocks.  (which may continue! )

Earnings can always be hit or miss - even stocks with good earning sometimes get pummeled.

Just my snowy opinion,...................

Also look at MPGI and CRESY, two food companies in similar situations (and of course ADM)

G, good call! I'm already $$++.

Thanks!

Me too -- and with today's action (all red in my portfolio) -- It's nice to have one that is moving up!   :D

Hi eliteG,

    Today I missed STKL again because the update letter was later than usual(same as CHID).
    It would be great if you could send the daily letter as early as possible so we can
    get it before going to work.

  Thanks!

Quote from: cache00 on April 27, 2006, 12:26:53 PM
G, good call! I'm already $$++.

Thanks!

Thx cache  ;D  Lets make some Mo!

Quote from: learnstock on April 27, 2006, 10:55:26 PM
Hi eliteG,

Today I missed STKL again because the update letter was later than usual(same as CHID).
It would be great if you could send the daily letter as early as possible so we can
get it before going to work.

Thanks!

Hey learnstock - we always try to send as early as possible but for us the key is to get our members this information before mkt open.  Generally we are done with analysis quite early so those update letters are the exception(even though they still came before mkt open).


update STKL:

Allright!  We got to pick up this hot stock 3 cents from the low of day!  STKL finished in a nice hammer doji type candle(dragonfly).. this indicates strong support especially if confirmed the next day by a close above todays high.  Hammer doji's can lead to some strong moves.

------
Position: bought STKL @ 9.65 on 4/27/2006
Order: Hold
Exit: stop @ 8.75
Target: n/a
------

Motley Fool
Oat Fiber ... and Ethanol?
By Stephen D. Simpson, CFA


I pride myself on finding strange stories or weird situations in the investing world. I've owned a company that baked dirt, a company that contracted with witch doctors to develop new drugs, and a company whose primary attraction was huge acreage in Argentina.

Yet I still manage to find SunOpta (Nasdaq: STKL - News) strange.

SunOpta is a Canadian company that combines a fast-growing -- yet still low-margin -- food business with a big ownership stake in an industrial abrasives company, plus technology that could be highly relevant to the emerging ethanol market. See, I told you this was weird.

Fourth-quarter results were pretty good -- reported revenue grew 48%, earnings per share tripled (though from $0.01 to $0.03), and all units of the business delivered growth. Though a lot of the revenue growth came from acquisitions, and internal growth was about 18%, operating margins did improve a bit.

But food isn't really the sizzle here. Sure, there are definitely solid prospects for the company's oat fiber, soy products, and fruit businesses, and SunOpta counts companies like Hain Celestial (Nasdaq: HAIN - News) and Unilever (NYSE: UL - News) amongst its customers.

But what's likely to really fire the imagination is the company's steam explosion technology -- in particular, its potential application to the ethanol industry. See, present-day ethanol production isn't quite as efficient as it could be (or needs to be). Most of a corn or wheat plant's biomass is cellulose, and that really can't be used with current technologies.

Because of this, many companies are scrambling to develop chemical, mechanical, or biochemical methods that would allow this material to be made into ethanol. In the case of SunOpta, it is supplying its technology and equipment (which uses high heat and pressure to break down the cellulose into something more useful) to a cellulosic ethanol plant under construction in Spain, as well as a pilot technology facility in Nebraska.

So you can see the appeal -- a little company (only about $400 million in market cap) that could perhaps supply key technology to big ethanol players (or potential players) like ADM (NYSE: ADM - News), Ag Processing, and/or Royal Dutch Shell (NYSE: RDS-B - News), to say nothing of the dozens of ethanol partnerships and cooperatives springing up around the country.

It's a big gamble, though. Sure, the company has a profitable and growing food business, but if the momentum crowd really gets a hold of this story, who knows what will happen. I find it a little strange that the company lists no R&D spending on its income statement, but if this company's cellulosic ethanol technology is the real deal, that could really put gas in this tank.

Unilever is a Motley Fool Income Investor recommendation..

Fool contributor Stephen Simpson has no financial interest in any stocks

fyi:
STKL: Short Interest UP 2.4% to 4.8M in Apr 2006
Tuesday , April 25, 2006 16:26 ET

According to new short interest data from NASDAQ, short interest for SunOpta, Inc (NasdaqNM: STKL) INCREASED 2.4% to 4,811,197 shares for the month ended mid-April, 2006.

SYMBOL         MARCH           APRIL          CHANGE       %CHANGE    DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
STKL           4,699,309       4,811,197        +111,888        +2.38%           5

Based on STKL's 20-day average daily share volume of 1,143,190, it would require approximately 5 day(s) of buying to cover this short interest.

update STKL:

STKL looked very nice early on but retreated and finished down to end the day.  We are still above our buy point and outside of the channel.  Earnings are out pre-market on Wednesday and we have decided to hold over earnings.

------
Position: bought STKL @ 9.65 on 4/27/2006
Order: Hold
Exit: stop @ 8.75
Target: n/a
------

Not sure if I feel comfortable holding this over earnings. My thinking is that the stock has had such a run up from the ethonol rally, it is going to have to post killer numbers in order to continue the uptrend.
Yesterday's strong pop and huge PLOP makes me wonder how much of this recent run was based on momo from the ethonol, which is a small part of their business at this point. If it rins early on today as it did yesterday I'll be tempted to sell at least half my position in order to cut my risk. I kicked myself all day yesterday for not selling into that early morning pop.
Any thoughts??

Quote from: calguy on May 02, 2006, 08:20:24 AM
Not sure if I feel comfortable holding this over earnings. My thinking is that the stock has had such a run up from the ethonol rally, it is going to have to post killer numbers in order to continue the uptrend.
Yesterday's strong pop and huge PLOP makes me wonder how much of this recent run was based on momo from the ethonol, which is a small part of their business at this point. If it rins early on today as it did yesterday I'll be tempted to sell at least half my position in order to cut my risk. I kicked myself all day yesterday for not selling into that early morning pop.
Any thoughts??

Calguy,

I agree with your post.  My style may also differ from other people.  I never hold into earnings as have been burned too many times.  Just a rule that I follow.  Much of this move is based on Ethanol and the earnings will not be based on that.  It may very well continue.  I will sell today at some point and evaluate again after earnings. 

Holding over earnings is always risky but I feel in this instance that the TA looks very strong.  The volume and the price rise were steady and controlled.  Only a small percentage of the company deals with ethanol.. that is very clear on their website.  I think that we are playing the constant earnings rise on STKL and the strong and steady volume and price rise.  I like this indecision before earnings.. instead of crazy buying or selling.  ;)

Sold my entire position at the open at 10.07. Still kickiung myself for not doing it yesterday around 10.50, but that's the way it goes. Still made a small profit. 

Quote from: calguy on May 02, 2006, 10:40:25 AM
Sold my entire position at the open at 10.07. Still kickiung myself for not doing it yesterday around 10.50, but that's the way it goes. Still made a small profit. 

So nice trade?  Did you make a profit?

G, it would have been nicer if I'd have sold during yesterday's run. I bought at 9.80 and sold at 10.07, so a .27 profit is better than the loss I was showing when it tanked on us yesterday afternoon.
Been burnt too many times breaking my holding into earnings rule. Still smarting from the whipping i took on DIET.
Good Luck to all who choose to hold.

Looks like I sold way too early. That's the way this trading has gone....lololol.
Good Luck with earnings!!!

Quote from: calguy on May 02, 2006, 02:58:17 PM
Looks like I sold way too early. That's the way this trading has gone....lololol.
Good Luck with earnings!!!

Looks like we got an afternoon pop.. perhaps an early leakage of the earnings report?  ;)

Good trading calguy!.. You protected your profit.  We are using this profit as a cushion against bad results or as momentum to catapult higher.. we shall see  >:D

Don't like holding through earnings either. Just sold at $ 10,51, 8% profit  ::) I'm happy.

Thanks for the pick and good luck for those holding.

Amarens

Earnings out.  %55 increase revenues, 108% increase in operating revenues.  Looks good to me so far.  The stock has not sold off, so I believe the street is happy.

Down in AH.  Not sure about the selloff.  IN line guidance.  See the CC tomorrow at 10am.

Quote from: saffeysite1 on May 02, 2006, 05:24:21 PM
Down in AH.  Not sure about the selloff.  IN line guidance.  See the CC tomorrow at 10am.

A lot of traders does not like earnings so they taking profits out of the table..

update STKL:

STKL has had a wild after-market trading after its earnings report:

QuoteSunOpta Announces First Quarter Results; Revenues Increase 55% - Operating Earnings Increase 84%
Tuesday May 2, 4:30 pm ET
http://biz.yahoo.com/cnw/060502/sunopta_q1_results.html?.v=1

After heading down more than 7% in after-hours trading STKL has come back and is only down 2%.  This of course can wildly change by tomorrow and I think we have a possible strong reverse in place.  According to the message boards Cramer gave STKL a big buy rating tonight.. I dont know how to confirm this but this strong after-hours reverse is very bullish.

STKL could open much higher!  Our stop is still in place in case we head down.  I considered placing a target to sell at above but for now we will let it run if the market chooses so.

------
Position: bought STKL @ 9.65 on 4/27/2006
Order: Hold
Exit: stop @ 8.75
Target: n/a
------

update STKL:

Today's action showed some indecision.. and also set us up perfectly for a little short squeeze action.  Surprisiningly, STKL, was able to hold its local support on heavy volume and attempted to run away.  The shorts defeated this maneuver but they have endangered themselves.. if 10.74 is breached(and then 11) we could see a strong move to the upside.

If the shorts are able to overcome buyers we must have a stop in place.  For now we will move our old stop to just under the 20ema.  Our 1st line of support is the 9.50 area(channel top, horizontal support).. 10 may even act as a bounce area tomorrow as well.

;)

------
Position: bought STKL @ 9.65 on 4/27/2006
Order: Hold
Exit: stop @ 9.35
Target: n/a
------

STKL just made a new 52 wk high today, it looks very strong. I think this stock will be trading @ $15 very soon. I'm making good $$$$  ;). I'm looking for the stock to close above $11 today.

Here's a link to the 10-Q if interested.

http://biz.yahoo.com/e/060505/stkl10-q.html

SunOpta is also "Best of Breed" in Cellulosic Ethanol, the kind of ethanol Bush talked about in his State of the Union address, "advanced ethanol" made from corn stalks, straw, and switchgrass...


Some other good research info:

http://www.abengoabioenergy.com/research/index.cfm?page=5&lang=1

http://www.abengoabioenergy.com/research/index.cfm?page=10

http://www.abengoabioenergy.com/about/index.cfm?page=5&lang=1&headline=21

http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=4687772&tid=stklf&si%20d=4687772&mid=36234

Quote from: cache00 on May 05, 2006, 12:51:51 PM
STKL just made a new 52 wk high today, it looks very strong. I think this stock will be trading @ $15 very soon. I'm making good $$$$  ;). I'm looking for the stock to close above $11 today.

11 would have been nice.. this week  8) Glad to hear you're making the green stuff.

Quote from: 422fwhp on May 05, 2006, 11:50:37 PM
SunOpta is also "Best of Breed" in Cellulosic Ethanol, the kind of ethanol Bush talked about in his State of the Union address, "advanced ethanol" made from corn stalks, straw, and switchgrass...


Some other good research info:

http://www.abengoabioenergy.com/research/index.cfm?page=5&lang=1

http://www.abengoabioenergy.com/research/index.cfm?page=10

http://www.abengoabioenergy.com/about/index.cfm?page=5&lang=1&headline=21

http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=4687772&tid=stklf&si%20d=4687772&mid=36234

Great info Jody, thx  ;)



update STKL:

STKL may be ready to move out of its latest consolidation.  There are supports at the magenta trendlines as well as psych number 10.  Although the intraday stop is @ our entry of 9.65 I would like to see this stock close above 10.  We are approaching the all-time high of 11.45 and could well see it with a burst this week.  Some may consider selling there(we may even) but for now this volume buildup is very bullish and with some well placed news or pr we can definately gap over that zone.  >:D

------
Position: bought STKL @ 9.65 on 4/27/2006
Order: Hold
Exit: stop @ 9.65
Target: n/a
------

Interesting reading from CLEARFISH RESEARCH (a blog site I've never heard of) which analyzed SunOpta's business and basically recommends shorting the stock based on its trailing P/E of 40 and because of all the recent hype surrounding its marginal ethanol business.

http://clearfishresearch.blogspot.com/2006/05/sunopta-stkl-has-cellulosic-ethanol.html

Quote from: capricho on May 07, 2006, 06:25:04 PM
Interesting reading from CLEARFISH RESEARCH (a blog site I've never heard of) which analyzed SunOpta's business and basically recommends shorting the stock based on its trailing P/E of 40 and because of all the recent hype surrounding its marginal ethanol business.

http://clearfishresearch.blogspot.com/2006/05/sunopta-stkl-has-cellulosic-ethanol.html

another thing that may help us head higher is the amount of shorts that took a position after earnings.. this could lead to quick bursts as shorts get squeezed.

As of 8:42am.. STKL printed 11.50 pre-market.. thats what we call a squeeze jump  >:D  All-time high for STKL!  Enjoy.  :)

STKL already trading @ $12 in PM. Nice volume G, short covering should take us to $13 or more today.  STKL rocks!

Congrats to all still holding!

Amarens

Amarens, this ride is just starting. Biggest volume in over a year.  ;D

update STKL:

This was an extremely tough call this evening.. instead of selling STKL with our nice gain here we will give it an extremely tight stop assuring us a gain of at least 20%.. and giving STKL a bit of room to continue its run.

The volume today is extreme but it came on the day that STKL broke to new all-time highs.. which balances this out.  The stock continues to run with the ethanol plays.. and we dont mind although ethanol is a small part of their business(as far as the comapny says so far..)

Another reason we considered a sell at these levels is that we are near a fibonacci extension target(138.2%).. and the FOMC coming up.. but lets not kill this feeding frenzy right off the bat.  The market is always right and I hope it wants a nice gap and run tomorrow.  8)

------
Position: bought STKL @ 9.65 on 4/27/2006
Order: Hold
Exit: stop @ 11.60
Target: n/a
------

Sold!!!!  ;D

Another great story for the 3SOF archive!!!

13:44  STKL SunOpta: Ethanol is no longer call option - Canaccord Adams (11.47 -0.30) 

Canaccord Adams notes that STKL has risen approximately 16% in May. While STKL recently reported a solid Q1, they think much of the recent share performance can be attributed to ethanol speculation, and perhaps some short covering (STKL had 4.8 mln shares short in April). They note that STKL's steam explosion process, which can produce ethanol from biomass (corn stalks to grass clippings), is less than 1% of total revenue and does not contribute profit. The group's revenue for the latest quarter was $996,000, and operating earnings were negative $1.8 mln. Their $11 12- to 18-month price tgt places no value on the ethanol opportunity given that the process has not been proven to be economically viable, and they forecast no profit contribution in any of their estimates. However, given the ethanol interest across Wall Street, industry, government, and even Main Street, they think there is certainly some value in the steam explosion business, and the market has already begun to factor an ethanol valuation into STKL's market cap. At STKL's current share price, they estimate that investors are paying approximately $125M, or just over $2 per share, for the ethanol opportunity.

Also  talk of lifting the tariff on Sugar Ethanol may hurt these stox

Trade Closed STKL
------
Begin: bought STKL @ 9.65 on 04/27/2006
End: sold STKL @ 11.58 on 05/09/2006
Gain(Loss): +20.00%
Trading Days: 09
-----

Trade Notes:

-We bought this stock 3 cents from the low of day(4/27), right above support
-climbed straight up to 52 week high
-earnings release(5/2) had an intial negative reaction(after-market down 7%)
-stock reversed before open and next day was only down 3%
-setup a squeeze type move and burst to all time highs
-volume was extreme and we decided to place a tight stop
-stop hit and we take home 20%

What a battle on this one!  Any stock making an all-time high has to stay on the watchlist.  It will be interesting to see what STKL can do from this point on.  Heavy volume again today may indicate a lot of support at these upper levels.

Take a gander...  :o

Up on recent news:  SunOpta to Sell Ethanol Plant in China

http://biz.yahoo.com/ap/060623/sunopta_contract.html?.v=1

This one in positively active again

Rally after earnings :   
http://biz.yahoo.com/ap/060803/earns_sunopta.html?.v=1   


ALSO :

SunOpta Announces System Sale to Celunol
Thursday August 3, 4:33 pm ET
TORONTO--(BUSINESS WIRE)--Aug. 3, 2006--SunOpta Inc. (SunOpta or the Company) (Nasdaq:STKL - News; TSX:SOY - News) today announced that the company has sold a continuous process system, including SunOpta's patented and proprietary biomass conversion technology, to Celunol (formerly BC International) for Celunol's cellulosic ethanol commercial demonstration facility in Jennings, Louisiana. Terms of the sale were not disclosed.      
The SunOpta Bioprocess Group has been designing, building, and optimizing biomass conversion plants for over thirty years. End products include cellulosic ethanol, cellulosic butanol, xylitol, and dietary fibre for human consumption. Raw materials include wheat straw, corn stover, grasses, oat hulls, wood chips, and sugarcane bagasse.
Celunol Corp. (www.celunol.com) is a privately held company headquartered in Dedham, Massachusetts moving rapidly to commercialize its proprietary technology for producing ethanol from a wide array of cellulosic biomass feedstocks--including bagasse, agricultural waste, wood products and dedicated energy crops. The company is currently completing an expansion of its existing pilot facility and is moving forward to construct a demonstration plant based on its technology later this year. Celunol aspires to develop and build a portfolio of ethanol facilities in the U.S. and abroad. Shareholders in the company include Braemar Energy Ventures, Charles River Ventures, Khosla Ventures, and Rho Capital Partners.
Murray Burke, Vice President and General Manager of SunOpta's BioProcess Group, commented, "The combination of SunOpta and Celunol process technologies will lead to a very competitive solution for producing cellulosic ethanol from various biomass substrates. We are excited to be working with Celunol on the first commercial cellulosic ethanol plant in the United States and look forward to the massive grow out in this market."
Carlos Riva, President and Chief Executive Officer of Celunol, noted the advantages of acquiring the SunOpta technology, "Incorporating SunOpta's biomass pretreatment system into our proprietary process will further enhance the operating efficiencies of our Jennings facility, and will advance the rapid commercialization of Celunol's cellulosic ethanol technology."

Good luck to all invested in STKL

jorgegr

Let's go STKL
Suport at 8.88 and resistance at 9.49

SunOpta Names Bromley As Chief Executive
Friday January 5, 8:27 am ET
SunOpta Names Steve Bromley As Chief Executive, Succeeding Jeremy Kendall

NEW YORK (AP) -- SunOpta Inc., which makes and sells natural and organic foods as well as abrasives for various construction industries, on Friday said it named Steve Bromley as chief executive, effective Feb. 1.

Bromley, 46, currently serves as president and chief operating officer and will retain his president title.

He succeeds Jeremy Kendall, 66, who will remain as chairman of SunOpta and its subsidiaries and will be involved in strategic planning and business development with senior management on a reduced schedule.

updated chart look.......