Message #2 From:
Stock News Bot Date: June 28, 2006 09:00:00 AM
NTRZ News Dutton Associates Announces Investment Opinion: NutraCea Maintained At Strong Buy Rating By Dutton Associates
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--June 28, 2006--Dutton Associates updates its coverage of NutraCea (OTCBB:NTRZ) maintaining its rating at Strong Buy with a target price of $1.80. The 10-page report by Dutton senior analyst Gerald F. LaKarnafeaux, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
On October 4, 2005, the merger of NutraCea and RiceX was completed. The benefits of the merger to NutraCea are substantial. Specifically, the financial position of NutraCea has been strengthened as a result of the elimination of $2.4 million of debt and an infusion of $7.85 million of cash that exceeded the requirements of the merger agreement by $2.4 million. The Company reported excellent fourth quarter 2005 and first quarter 2006 operating results. It is anticipated that 2007 sales and income results will be substantially above 2006. Production capacity constraints are being resolved with a supply agreement in the first 2006 quarter, the expansion of existing facilities in the second half of 2006 and new construction that is planned for 2007. There has been progress in the development of international food programs that may provide profitable sales beginning in the second half of 2006. The Company will be supplying low cost, nutrient dense, high margin stabilized rice bran based product to impoverished third world consumers, particularly school children. On May 15, 2006, the Company announced a $17.56 million private placement of Series C convertible preferred stock, which should provide the capital required to meet its business plan.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $33,000 from shareholders -- Carl Kruse and Craig Horn for 4 Research Reports with coverage commencing on 1/28/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.
