Consumer Sector Ideas

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Stevia First -



http://seekingalpha.com/article/945181-investors-take-note-dr-oz-touts-stevia-as-the-best-of-the-sugar-alternatives?source=yahoo



Excerpt from previously posted article -


>>> Almost all of the stevia harvested today is grown outside of the U.S. on small farms predominantly in China, Vietnam, and Central America. Given that the World Health Organization estimates stevia could eventually replace 20-30% of all dietary sweeteners, clearly a consistent and reliable supply line would be necessary to meet those demands. An emerging nano-cap company hopes to be one of those future supply lines. Stevia First (STVF.OB), an early-stage agribusiness based in Yuba City, California (the state's most fertile agricultural region) is focusing on developing and producing stevia on an industrial scale. The $28.81 million market cap company recently licensed a new fermentation process developed by Vineland Research and Innovation Centre out of Canada. The license allows the manufacturer to consistently produce the sweet steviol glycoside, rebaudioside A, (Reb A), the sweetest and most desirable part of the leaf, without the need to necessarily grow the plant. If this process can work on a large scale, it should cut the costs of producing the sweet Reb A by as much as 70%. On August 29th, when Stevia First announced that it had bought the rights of this fermentation-based process from Vineland, its stock price soared from $0.40 up to $0.94 before settling in the mid $0.70s by the end of the trading day. Today the stock trades in the $0.50 to $0.57 range. These swings are consistent with micro-cap development-phase companies, especially those with no current sales. Share prices in develop-phase companies swing up or down based on perceptions of their future earnings or the possibility of future earnings. Stevia First is no different.

At this time, Stevia First is strictly a development-phase company developing one of the hottest products on the market today, stevia. That alone should make the company worth a look. However, if its fermentation-based process turns out to be successful, that reality could put it on the forefront as an inexpensive and consistent supplier of stevia, and the company could be primed for a buyout by any of the many larger bottlers who are now adding stevia to its products. But caution must be taken, as this is a volatile company with high risks along with the potential high rewards. Considering that Dr. Oz broadcasted his pick of stevia as the best of the sugar substitutes to millions of viewers, this indicates a new awareness and helps to solidify the product's validity and demand. The odds are that stevia usage will continue to grow, and Stevia First might be one of the companies that could rise along with the stevia boom.

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