$RIBT – Ricebran…The Next Soybean?
RiceBran Technologies (NASDAQ: RIBT) is a global leader in developing and producing healthy, natural, and nutrient dense products derived from rice and other small grains. RIBT stock has been gaining momentum as the war in Ukraine puts pressure on food supply chains. RIBT stock gained 41% this week and could continue running as most investors hear about the stock. Considering its high trading volume of 5.4 million shares – a 335% increase from its average, RIBT stock is shaping to be one of the hottest plays this week.
Fundamental Analysis
Focused on providing creative solutions for food and feed applications, RIBT utilizes its technologies, facilities, and experience to convert raw rice bran into stabilized rice bran and high value derivative products. Through this, RIBT looks to capitalize on the nutritional and economic value of the so far underutilized rice bran. This food product is a dense nutrient source of protein, fats, fiber, and carbohydrates as well as vitamin E and antioxidants. In light of this, rice bran can be utilized in a number of products from health foods to animal feed.
Currently, RIBT is working on expanding the uses of rice bran to unlock its massive potential. Using its technologies, RIBT is able to increase the nutritional value and the flexibility of rice bran for more applications. Rice bran is notably underutilized in the feedstock sector compared to other feedstocks like soybean. Despite the growing popularity of soy products, 77% of global soy produced is used to feed livestock.
In this way, the company is targeting the growing potential for its products to take on the same utilization as soybean products which have recently come under criticism for their harmful effects on the environment.
With a utilization rate of only 4%, the US rice bran market would increase to $380 million if its utilization increases to 13% – equivalent to soybean’s current share of the market. With this in mind, RIBT stock could be a profitable investment if the company is able to increase its hold on this market through its range of products.
In the same vein, RIBT anticipates using its technology to capitalize on the oat meal market with added value offerings. Considering the growing demand for oat milk, RIBT points to the possibility for oat and barley derivatives, such as beta-glucans, for human food and
supplement applications as well as ground oats as a starter material for the oat milk market.
The company highlighted that while corn, wheat and soy coproduct markets are dominated by massive companies, the market for small and ancient grains is made up of smaller players and RIBT has the opportunity to position itself at the forefront.
Management
With the company looking to expand its business, RIBT added Jean Heggie and Will Black to its BOD. As the founder of a food industry consultancy – Heggie & Associates, LLC, Heggie has over 35 years of experience in food ingredient marketing. Heggie has previously worked as a Global Marketing Lead for DuPont Nutrition & Biosciences’ Protein Solutions business unit where she led the development of the company’s marketing plan for its plant protein portfolio.
In addition, Black is considered to be a global health and nutrition guru with 35 years of experience. During his career, Black served as Senior Vice President of Sales and Marketing at ChromaDex, COO at Natreon, as well as Global Head of Marketing of Human Nutrition and Health at DSM Nutritional Products. Moreover, Black held senior roles at Dupont Nutrition and Health in sales, marketing and business development for the Solae business unit. At the same time, Black is the founder and CEO of Single Track Consulting, LLC which is focused on global advisory for the nutrition and health sectors. Considering the vast experience of both Heggie and Black, RIBT is well-positioned for further growth as a value-added ingredient provider.
Insider Activity
Although RIBT’s business has the potential to grow further as more people realize the potential of rice bran, the company’s major shareholder – Continental Grain Co. – has filed a notice with the SEC to state its intention to sell up to 3.8 million shares of RIBT stock. So far, CGC sold over 1.5 million shares since March.
Despite this insider selling, several institutions have been adding shares of RIBT stock since April. This institutional buying is highlighted by Arnhold LLC which increased its position by 23% on May 10th. While the institutional buying is mixed with insider selling, this could be a sign that news is on the way for RIBT.
RIBT Financials
According to its Q1 financials, RIBT reported $10.5 million in revenues representing a 23% increase from the same year-ago period. However, despite this increase the company reported a net loss of $1.5 million. RIBT also reported $31.3 million in assets and an increase in its liabilities from $12.8 million in Q1 2021 to $14.1 million. As the company is able to realize increasing revenues from its business, the company has the chance to report a net profit by the end of year.
In Q1 and Q2 of 2021, the company achieved a gross profit after achieving $8.6 and $7.6 million in those respective quarters. The company notes that its financial profile has been improving after exiting 2021 with a positive revenue trend across all businesses and progressively declining gross losses.
Technical Analysis
RIBT is currently trading at $.56 and shows a main support at .5108 and .4764. It recently tested its resistance at .5849 and with its next strong resistance near .6403. Considering RIBT stock’s 41% increase this week, accumulation has shown some ups and downs but is still climbing. The RSI is currently at 59 and MACD is approaching a bearish crossover.
With the RSI and MACD regulating, there’s room for RIBT stock to continue its run. With investors expecting a .60 breakout soon, the stock could retest its resistance. Bullish investors could take a starter position while the RSI regulates and average up. With an OS of 51.8 million OS and a low float of 50.2 million, the stock could move easily with momentum.
RIBT Forecast
As the company continues to develop and produce rice bran derived products, RIBT could grow as a leader in this underutilized sector. With the company’s wide range of products, RIBT has the opportunity to position itself in this $2 billion market.
Given the recent stresses on supply chains, RIBT’s 100% grown and processed in the US products are a bullish sign. On top of this, the demand for non-GMO and gluten-free products are creating a market which RIBT is well positioned to capitalize on with its portfolio of products.
As the company continues to strengthen its balance sheet after showing notable growth over the last year, RIBT stock also presents significant long-term potential. However, in the short-term RIBT’s recent run is fueled by new momentum which could die out. With this in mind, investors should take profits on the way up.
Fundamental Analysis
Focused on providing creative solutions for food and feed applications, RIBT utilizes its technologies, facilities, and experience to convert raw rice bran into stabilized rice bran and high value derivative products. Through this, RIBT looks to capitalize on the nutritional and economic value of the so far underutilized rice bran. This food product is a dense nutrient source of protein, fats, fiber, and carbohydrates as well as vitamin E and antioxidants. In light of this, rice bran can be utilized in a number of products from health foods to animal feed.
Currently, RIBT is working on expanding the uses of rice bran to unlock its massive potential. Using its technologies, RIBT is able to increase the nutritional value and the flexibility of rice bran for more applications. Rice bran is notably underutilized in the feedstock sector compared to other feedstocks like soybean. Despite the growing popularity of soy products, 77% of global soy produced is used to feed livestock.
In this way, the company is targeting the growing potential for its products to take on the same utilization as soybean products which have recently come under criticism for their harmful effects on the environment.
With a utilization rate of only 4%, the US rice bran market would increase to $380 million if its utilization increases to 13% – equivalent to soybean’s current share of the market. With this in mind, RIBT stock could be a profitable investment if the company is able to increase its hold on this market through its range of products.
In the same vein, RIBT anticipates using its technology to capitalize on the oat meal market with added value offerings. Considering the growing demand for oat milk, RIBT points to the possibility for oat and barley derivatives, such as beta-glucans, for human food and
supplement applications as well as ground oats as a starter material for the oat milk market.
The company highlighted that while corn, wheat and soy coproduct markets are dominated by massive companies, the market for small and ancient grains is made up of smaller players and RIBT has the opportunity to position itself at the forefront.
Management
With the company looking to expand its business, RIBT added Jean Heggie and Will Black to its BOD. As the founder of a food industry consultancy – Heggie & Associates, LLC, Heggie has over 35 years of experience in food ingredient marketing. Heggie has previously worked as a Global Marketing Lead for DuPont Nutrition & Biosciences’ Protein Solutions business unit where she led the development of the company’s marketing plan for its plant protein portfolio.
In addition, Black is considered to be a global health and nutrition guru with 35 years of experience. During his career, Black served as Senior Vice President of Sales and Marketing at ChromaDex, COO at Natreon, as well as Global Head of Marketing of Human Nutrition and Health at DSM Nutritional Products. Moreover, Black held senior roles at Dupont Nutrition and Health in sales, marketing and business development for the Solae business unit. At the same time, Black is the founder and CEO of Single Track Consulting, LLC which is focused on global advisory for the nutrition and health sectors. Considering the vast experience of both Heggie and Black, RIBT is well-positioned for further growth as a value-added ingredient provider.
Insider Activity
Although RIBT’s business has the potential to grow further as more people realize the potential of rice bran, the company’s major shareholder – Continental Grain Co. – has filed a notice with the SEC to state its intention to sell up to 3.8 million shares of RIBT stock. So far, CGC sold over 1.5 million shares since March.
Despite this insider selling, several institutions have been adding shares of RIBT stock since April. This institutional buying is highlighted by Arnhold LLC which increased its position by 23% on May 10th. While the institutional buying is mixed with insider selling, this could be a sign that news is on the way for RIBT.
RIBT Financials
According to its Q1 financials, RIBT reported $10.5 million in revenues representing a 23% increase from the same year-ago period. However, despite this increase the company reported a net loss of $1.5 million. RIBT also reported $31.3 million in assets and an increase in its liabilities from $12.8 million in Q1 2021 to $14.1 million. As the company is able to realize increasing revenues from its business, the company has the chance to report a net profit by the end of year.
In Q1 and Q2 of 2021, the company achieved a gross profit after achieving $8.6 and $7.6 million in those respective quarters. The company notes that its financial profile has been improving after exiting 2021 with a positive revenue trend across all businesses and progressively declining gross losses.
Technical Analysis
RIBT is currently trading at $.56 and shows a main support at .5108 and .4764. It recently tested its resistance at .5849 and with its next strong resistance near .6403. Considering RIBT stock’s 41% increase this week, accumulation has shown some ups and downs but is still climbing. The RSI is currently at 59 and MACD is approaching a bearish crossover.
With the RSI and MACD regulating, there’s room for RIBT stock to continue its run. With investors expecting a .60 breakout soon, the stock could retest its resistance. Bullish investors could take a starter position while the RSI regulates and average up. With an OS of 51.8 million OS and a low float of 50.2 million, the stock could move easily with momentum.
RIBT Forecast
As the company continues to develop and produce rice bran derived products, RIBT could grow as a leader in this underutilized sector. With the company’s wide range of products, RIBT has the opportunity to position itself in this $2 billion market.
Given the recent stresses on supply chains, RIBT’s 100% grown and processed in the US products are a bullish sign. On top of this, the demand for non-GMO and gluten-free products are creating a market which RIBT is well positioned to capitalize on with its portfolio of products.
As the company continues to strengthen its balance sheet after showing notable growth over the last year, RIBT stock also presents significant long-term potential. However, in the short-term RIBT’s recent run is fueled by new momentum which could die out. With this in mind, investors should take profits on the way up.
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