Topic: How To Invest

Dear Mr. McKeough: I have been following a company called Bio-Extraction Inc. It sounds very interesting, but I’m not sure. Do you have any insight into this stock? Thank you in advance from a long-time subscriber.

Article Excerpt

Bio-Extraction Inc., $1.11, symbol BXI on Toronto (Shares outstanding: 125.7 million; Market cap: $139.5 million), is focused on the extraction of oil and high-value proteins from oilseeds. Bio-Extraction believes that its patented technology will allow for extracting active ingredients and oils from oilseeds using significantly lower temperatures than conventional methods. This would result in higher yields and higher-quality meal, oils and proteins. Bio-Extraction’s process is designed to let the company produce not only vegetable oil and animal feed, but also specialty proteins that it can sell at high profit margins. These are called protein isolates — and have a minimum protein content of 90% on a moisture-free basis. If successful, the company could sell these protein isolates to food makers because of their 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 have similar characteristics to eggs. Bio-Extraction will initially focus…