NTRZ.OB

[fous]

mike................................your the man............

[la-onda]

on fire again new BO resistance 2.74$ broken now 

[lancefur]

This continues to do solidly. I wonder now that it has broken resistence, is this too late to join in the run up? Or would one express caution and wait for a dip before buying in again?

[setravis]

I think the MACD is going to bounce off the center line. JMHO of course.

Hi Setravis,

We are in the same boat. We don't know for sure 

I promised myself to buy this stock back ASAP when we sold it at 2.5. I do strongly believe that the value of Nutracea will increase very significantly in the future. It is not often you see a stock with so strong fundamentals.

I have had a buy order at 2 since I sold at 2.5 and even though there have been a few close calls It was never filled. With the latest hype from thestreet.com I am wondering if I will ever get filled so I have raised my bid to 2.2.

I am Personally not a big fan of thestreet.com but even a blind chicken can find a gold corn 

Well Mike, "she did turn north" !....Good for all invested in this one !

[bcowan1943]

http://seekingalpha.com/article/26717

Another positive article on NTRZ. I feel it will get into the $4 range within 6 months. I am long since .96. If nasdaq expect good move upward. Best to all longs.

[lancefur]

Is entry point an issue on this one? It seems I have missed the bus. 

Fear of pulling the trade trigger.  I am a bull at heart with a touch of bear and that prevented me from this one and utlimately costing me today with it rising almost 10%

[snowcat]

The stock smashes thru $3!

This is a company that has a proprietary way to take rice husk, the healthiest, but hardest to process WASTE product of rice, the world's most popular food and turn it into rice bran.  They spin gold out of straw.

This is an easy double at this point.  They have big tax credits at this point and their growth potential is huge!  This is a long term hold and will outperform most of the stocks out there.

Pay attention, please.

[snowcat]

Here is a nice analysis on one of my favorite companies, NTRZ.ob



They make rice bran from the husk of the rice, normally a waste product.  Their raw material costs are nominal and the nutritional value is huge. 



The stock is about $3 and for a patient investor, it could be a good holding.  A double in the next two years would not surprise me.



http://otcspeculator.blogspot.com/2007/02/full-file-on-ntrz.html

[lancefur]

Great article. I would saw based on that blog, and I would have to dig a little deeper, this one sounds like it could do much better than what you even hoped for.

This one is definitely on a nice run and need to ride it with strong hands. I need to learn patience and maybe this stock can give me that patience.

[la-onda]

nice buying opoortunity IMO

NutraCea Announces $50 Million Private Placement of Common Stock
Friday February 16, 8:25 am ET
Capital Raise Poises Company for Global Expansion

EL DORADO HILLS, Calif., Feb. 16 /PRNewswire-FirstCall/ -- NutraCea (OTC Bulletin Board: NTRZ - News), a leader in research and the production and marketing of stabilized rice bran and its derivatives announced today that they have entered into definitive agreements with institutional and accredited investors with respect to a private placement of 20,000,000 shares of common stock at a purchase price of $2.50 per share, for gross proceeds of $50,000,000, before payment of placement agent commissions and offering expenses. Investors also will receive warrants to purchase 10,000,000 shares of common stock at an exercise price of $3.25 per share expiring in five years. Rodman & Renshaw LLC served as exclusive placement agent for the transaction.

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Brad Edson, Chief Executive Officer and President of NutraCea stated, "This financing will strengthen NutraCea's ability to expand its proprietary stabilization plants both domestically and in the international markets, allowing us to bring our technology into regions of the world where large scale rice production can provide the raw materials to manufacture our core products. This opportunity for rapid growth positions us to make stabilized rice bran and rice bran derivatives accessible to global communities as a food ingredient, an economical solution for the reduction of malnutrition and for nutraceutical products that address a variety of health issues."

With its current cash balance and its existing contractual commitments, NutraCea believes that it has successfully secured the necessary capital to strengthen its strategic position in the global food marketplace. As an agricultural and technology driven company with added financial resources, NutraCea can now deliver commercially stable rice bran and value added derivative products on a larger scale to help satisfy the rapidly growing world wide demand. The recent sharp price increase in other grain products such as corn and wheat, make stabilized rice bran an even more attractive economic alternative.

The financing described herein was made only to accredited investors in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The securities issued in this financing have not been registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the "SEC") or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. As part of the transaction, NutraCea has agreed to file a registration statement with the SEC covering the resale of the shares of common stock issued in the offering, including the shares of common stock issuable upon exercise of the warrants. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities discussed herein, nor may there be any sale of the securities in any jurisdiction in which such offering would be unlawful.

[jmccar2]

Thanks for the tip la-onda! I wanted to get into this stock after reading a 2/10 piece by "otcspeculator"... I saw the news 5 minutes after it came out this morning and (since I'm a neophyte) didn't know exactly what to make of it. I went to all the boards and found nothing, but still suspected that it might be a good buying opportunity...You gave me the confirmation I needed in your above post...I picked up 8k shares at 2.75 and they were just trading at 3.06 again-- I guess the market digested the above report.. Thanks again!

[jmccar2]

I guess this is dilution...From The Otcspeculator:

"NTRZ announced this morning that it would raise $50 million in capital with the private placement of 20 million shares to institutional investors at a price of $2.50. The deal also included warrants to buy another 10 million shares at an exercise price of $3.25.

Obviously, I'm not immensely thrilled at the news, as I had speculated that NTRZ should be able to use debt financing to fund a significant part of their expansion, and I was therefore hoping that the company would buy back its warrants and retire them. However, the news should not come as too big of a surprise to readers, because I did highlight dilution as the biggest risk going forward when I profiled NTRZ last week.

Well, what's done is done, and the only thing left to do is look ahead here. Nutracea now has the requisite capital to complete both U.S. and European expansion, and that should allow them to capture all of the available rice bran production in these markets in the next 2 years. Additionally, the company will maintain a strong balance sheet, which should attract investors. Finally, that should be it as far as dilution goes, so the only real wild card going forward is when plants get finished. Because NTRZ is the only company that has the ability to stabilize rice bran, the when is not particularly important, because they will have the U.S. and European markets completely captured by 2009 at the latest.

On the negative side, this dilution is big enough to have an impact on earnings going forward, and will likely have the effect of stalling earnings growth over the first half of 2007. As the markets tend to look 6 months down the road, I don't expect this to be a huge problem, but it does take away some catalysts for near term price appreciation. The bottom line is that NTRZ is an investment, not a trade, and it is going to take some patience here.

As for today's action, the stock is obviously going to take a hit here, but with it poised to open down around $2.70, my profit is no longer big enough to really warrant selling and trying to buy back lower. Plus, I think there is a significant possibility that the stock may close higher than the open, for a couple reasons. First, the stock now has most of the uncertainty out of its way, so the next few weeks may be the last real entry point before the company starts to lay the foundations for its growth plans. Second, if you look at the details of the deal, I would highlight the fact that the company place the warrants at an exercise price of $3.25. That is pretty much at the all time high of the stock, and given the fact that such warrants are usually priced well below the expected value of the stock, the warrants indicate to me that the stock is expected to trade much higher than $3.25 over the longer term. If investors key in on this piece of data, I think they will be reluctant to sell this news.

Obviously, this news throws a bit of a wrench into my valuation analysis, because the shares outstanding now has to be adjusted. I will try to update the valuation this weekend.

Finally, I will be listening closely to NTRZ's presentation at Roth Capital next week, as I expect the CEO to outline a plan to use these funds quickly and efficiently for expansion. If NTRZ is on top of its game and already has detailed plans to use the funds, that could serve as a short term catalyst to boost shares. My hope is that with these new funds, NTRZ will be able to capture the U.S. and European markets more quickly, and thus accelerate the growth path of the company.

In closing, I just wanted to correct myself on a statement regarding NTRZ's process of stabilizing rice bran. The process itself is not patented, but rather, a "trade secret." NTRZ holds a number of patents, but the process itself is not patented. However, this is not really an issue, because even if someone else figures out how to stabilize rice bran in the future, NTRZ will have already captured the entire rice bran production in the U.S. and Europe (as well as potentially other geographic markets). Given the timeline that it takes from discovery of the process to creating a business/raising capital, etc, it is very unlikely that anyone would be able to compete with NTRZ in this business because NTRZ's head start has allowed them to capture entire geographic markets. Thanks to whoever pointed out this discrepancy.

Full disclosure: The author is long NTRZ"

[jmccar2]

Well...I also learned about a megaphone top today 

[jmccar2]

Opinions needed--Please...Is this NTRZ pattern a "classic triple bull trap"...Anybody else still holding this? Thanks!

[Michael]

Well I sold on Friday.

The credibility of mangement is very important for me and it is less than 6 month ago they guaranteed that we would see no further dilution. Quoting from memory (which is a bit rusty after 6 months!): "Investment in capacity expansions will be covered by financing from clients, free cash flow and debt financing".

NTRZ has had a history of dilution as David rightly has pointed out a few times. If they could have expanded their capacity without issuing new shares I truly believe this would have been a great investment going forward.

It isen't exactly cheap at this level so I prefer to be out of the stock for now but still keeping it on my watch list.

It has however been a great investment