News letter quoteThis is not being submitted with the intent of "bashing" ... just food for thought (pun, unintended) with
regard to the perhaps necessity of further financing.
Patrick McKeough newsletter, Nov. 30/2010
"Q: Pat: What do think about investing in BioExx Specialty Proteins? Thanks.
A: BioExx Specialty Proteins Inc., $2.40, symbol BXI on (Shares outstanding: 191.2 million; Market cap: $458.8 million, www.bioexx.com), is focused on the extraction of oil and high-value proteins from oilseeds.
BioExx believes that its patented technology will extract active ingredients and oils from oilseeds using much less heat than conventional methods. That would result in higher yields and higher-quality meal, oils and proteins.
The company's process is designed to let it produce vegetable oil and animal feed, as well as specialty proteins that it can sell at high profit margins. These specialty proteins, called protein isolates, have a minimum protein content of 90% on a moisture-free basis.
The company hopes to sell large quantities of these protein isolates to food makers, since they have the potential to replace egg, dairy and other proteins in broad applications, such as emulsifying, gelling and binding.
Plant-based proteins also have appeal to the vegetarian or vegan ingredient markets, because they can take the place of eggs in food manufacturing.
BioExx is initially focusing on extracting salable products from canola oilseeds. It opened its first oilseed-processing facility in last year. The plant's production startup has been slow.
The company's revenue was just $178,464 in the three months ended September 30, 2010. It lost $3.1 million or
.02 a share in the quarter.
BioExx spent $1.6 million on research and development in the first three quarters of 2010. In contrast, global food giants, including Cargill, Archer Daniels Midland and Bunge, are spending millions of dollars on developing their own protein isolates from soy, wheat, canola and other plants.
BioExx has a market capitalization of $458.8 million. It needs significant future growth to justify its current share price, let alone go higher.
We don't recommend BioExx. "