Ricebran Technologies (RIBT) is currently trading for $3.30 per share and is already up by 13.8% from our suggestion one week ago at $2.90 per share. RIBT's 14-day RSI is still only 67.92. On every one of its previous short-term rallies in recent years, it didn't reach a short-term peak until its 14-day RSI reached a level of between 74.70 and 96.26 with an average RSI at each short-term peak of 80.96.
RIBT's rice protein products are ideal for all plant-based meats and RIBT is perfectly positioned to capitalize most on this booming trend market. According to RIBT's CEO the company will be capitalizing on the plant-based meat craze in two major ways, "Our traditional rice bran business, probably the greatest opportunity is as a part of a mix of what will be going into those types of products. So one of the physical attributes of rice bran that works well is that it's a very good binder and it's a good water carrier. So when you're looking at creating something like a plant-based meat or a meat analog, you need something to help hold it together and then you need something to hold particularly wet ingredients together. And we believe there's going to be a very good opportunity for our products to be part of a solution in that market. The inclusion would not be real high. It would typically be 1.5% to 2.0% of the overall weight going into a product like that, but we think it's going to be a big opportunity. A second area that we're just starting to learn about will be to leverage the assets that we have up in East Grand Forks, Minnesota that we got through MGI Grain. MGI Grain is located really in the heart of the U.S. based ancient grain and pulses, a production area, which is heavy in Montana, North Dakota, Minnesota and South Dakota. And that supply will put us right into the flow for supplying those types of ingredients into plant-based meat."
Of the four major crops that feed the world (corn, soy, wheat and rice), rice is the only major crop that is gluten free and not genetically modified. Rice is the primary source of nutrition for three billion people worldwide. A rice kernel consists of a thin outer hull, the nutritious bran and germ layer and then the inner white rice kernel. The layer of rice bran and rice germ is where most of the nutrients reside.
However, rice bran is inherently unstable. RIBT's patented technology stabilizes raw rice bran immediately after white rice is milled. The stabilized rice bran is then converted into a range of rice bran based ingredients and derivatives. Rice bran is the perfect "clean label" ingredient. It is non-GMO, all natural, minimally processed, gluten free, soy free, low glycemic, and an excellent source of vegetarian/vegan macronutrients including plant-based protein, complex carbohydrates, dietary fiber and healthy fats.
Shares of Beyond Meat (BYND) are beginning to breakout big once again and so is Burcon Nutrascience (TSX: BU), which rose by 146.25% following NIA's recent suggestion. RIBT is perfectly positioned in America's hottest industry that is poised for the most rapid growth in the years ahead!
Along with plant-based meat being America's #1 hottest food trend, plant-based milk is currently America's second hottest food trend! We believe Lifeway Foods (LWAY) will become the biggest winner in the plant-based milk space. In January, a pea protein non-dairy milk start-up Ripple raised $65 million at a $350 million valuation. In March, LWAY launched their Plantiful pea-protein non-dairy milk beverage and we consider it far superior to Ripple because it contains probiotics for gut health. In addition, LWAY is getting ready to launch a CBD-infused version of Plantiful.
Currently, Lifeway Foods has quadruple the search traffic of Ripple Foods, yet its valuation is only a fraction of Ripple Foods. LWAY has already gained as much as 126.19% following NIA's recent suggestion and we believe LWAY could return to double-digit prices by year-end.
We love the fact that Danone the world's largest yogurt company owns 22% of LWAY and unlike Ripple, LWAY is generating positive free cash flow and has already established enough manufacturing capacity to generate 5X its current revenue!
We expect to hear very soon about plans for Impossible Foods to have its IPO and when that news hits, shares of RIBT and LWAY will likely make their largest short-term gains in history, in NIA's opinion! Remember, just like how Danone owns 22% of LWAY, Continental Grain Company owns 22% of RIBT and Continental was also the initial major financial backer of Impossible Foods! Obviously, Continental expects RIBT to become a major player in the plant-based foods space. Besides investing another $5 million into RIBT in recent months, Continental's Senior Vice President and Head of Corporate Investments Ari David Gendason has been accumulating a large RIBT position in the open market along with Henk Hoogenkamp the world's most respected expert on plant-based foods. See their recent RIBT insider buying for yourself by clicking here!
BYND is currently attacking Impossible Foods for using GMO ingredients in its products. We believe Impossible Foods could soon switch from using GMO soy-protein to non-GMO rice-protein and if so, RIBT's products could potentially become an important part of the Impossible Burger, which has now surpassed the Big Mac to become America's #1 most popular burger!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has purchased 10,000 shares of LWAY and intends to sell for a profit in the future. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.
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