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Re: Faithless post# 126

Tuesday, 06/17/2008 6:24:13 AM

Tuesday, June 17, 2008 6:24:13 AM

Post# of 10951
that's a great question faithless and i wish i had a great answer for you, but i don't.

all these start-up companies seem to go through the same growing pains. they come up with the " next big thing ", the price runs up on the hype of their potential and then comes crashing back down when the reality sets in that it might take longer to execute on their business plan than originally thought. NTRZ seems to be no different in that aspect.

NTRZ seems to have hit the perfect storm in reasons for the price decline. it all started when they couldn't get their 2 new plants in louisiana completed on time. that caused them to start missing their revenue projections for several quarters in a row, which led to all of their institutional investors to leave, which caused some of their retail investors to sell, which caused a loss in faith in the CEO, which led to a further price decline, which led to them having to rely on more dilutive funding, which led to more downward price pressure. the end result is what you see today.

in my opinion NT should have stuck with their core business of processing stabilized rice bran and using that core business to get the company cash flow positive before they expanded into rice bran oil, stabilized wheat bran and entering into partnership agreements that are draining their capital and won't produce any revenue for a couple of years. but CEO edson seems hell-bent on sticking to his master plan of building a giant corporate octopus with tentacles reaching into multiple product lines and worldwide distribution channels.

the bad news is all of this has led to an erosion of investor confidence and likewise share price. the good news is if he can pull it off he's going to end up with an extremely valuable company.





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