 |
 |
 |
|
|
|
This Month's Tiny Gems - June 2014
BioLargo, Inc. (BLGO)
RiceBran Technologies (RIBT)
U.S. Geothermal Inc. (HTM)
BioLargo, Inc. (BLGO)
BioLargo, Inc. (BLGO) is a company whose technology platforms are all involved in the harnessing and delivery of iodine as a broad spectrum disinfectant, oxidizer, and nutrient. The company has structured itself as a science-oriented business with three primary market segments, a water filtration through its BioLargo Water business, medical technology through its Clyra Technology division, and consumer products marketed under the brand names Odor-No-More, Nature’s Best Solution, Deodorall, and NBS.
The company expects to tap a huge market with its patented AOS (Advanced Oxidation System) Filter, which is a new invention that was recently validated in proof-of-concept testing at the University of Alberta in Edmonton, Canada. The validation showed the technology of the AOS Filter was highly effective at dismantling and removing hard to manage contaminants from water.
BioLargo’s proof-of-claim work showed that their AOS Fitler performed at greater than 10 times faster and at about one-twentieth the power consumption of the closest competitor to dismantle and remove very hard to get contaminants in a continuous flow of water.
The size of the global water market is estimated to be a $375 billion market. The water treatment industry offers a massive commercial opportunity, and the AOS Filter is a significant advancement in the way water can be treated.
RiceBran Technologies (RIBT)
RiceBran Technologies (RIBT) has numerous products which are used by food manufacturers to create gluten-free, hypo-allergenic, minimally processed and non-GMO (i.e., non-genetically modified organism) nutrition rich products used in pasta, baked goods, pizza dough, cereals, ground meats, healthy beverages and numerous other applications. The company also makes similar protein rich ingredients used to make animal feed for pets and horses.
All of their products are derived from rice bran, in other words, the hard outer layer of the rice grain. After rice is harvested, the farms mill the rice by crushing rice grains together, which breaks off the husk, and then the next few outer layers of the rice grain, the bran and the germ, are also broken off as one converts brown rice to white rice. The bran is separated and further processed via a combination of heat, water, and pressure are used to deactivate the enzymes that cause rancidity in the rice bran. From this various products are manufactured that have assorted levels of plant protein, carbohydrates, and dietary fiber.
Much of the nutritional value of rice lies in the germ and bran, which is typically discarded during the milling process. About 60 million metric tons of rice bran is thrown away or used as low-level animal feed annually. RiceBran Technologies knows the value of this non-GMO food product rich in nutrients and anti-oxidants. As rice is a staple food for 70% of the population with 600 million tons consumed annually, RiceBran Technologies has explosive potential for growth.
The U.S. nutraceutical and functional food market is expected to grow at a 5% compounded annualized growth rate from 2013 to 2018, reaching $75 billion by 2018. RiceBran Technologies products are also sold into the functional food segment, and are used in protein beverages, energy bars, meal replacement products and a host of other healthy and natural products. The sheer size of the market RiceBran Technologies addresses combined with its range of products suggests this company has a very optimistic future.
U.S. Geothermal Inc. (HTM)
U.S. Geothermal Inc. (HTM) is primarily engaged in the development, acquisition, and utilization of geothermal resources for the generation of electrical power and for sustainable direct use applications. The company strives to enhance shareholder value by addressing energy needs both domestically in America and abroad, while also promoting a clean environment.
Currently, U.S. Geothermal Inc. is operating geothermal power projects at Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho. In addition to the newly acquired Geysers development project, the company is currently developing a second phase project at San Emidio Nevada, as well as developing the El Ceibillo geothermal prospect located within a 24,710 acre (100sq km) energy rights concession area in Guatemala, located 8.5 miles (14 km) from Guatemala City, the largest city in Central America.
U.S. Geothermal, Inc. also recently acquired the Geyser’s project of Ram Power Corporation located in the Mayacamas Mountains of Sonoma County, California, approximately 12 miles north of the City of Healdsburg, for $6.4 million in cash. The acquisition of the Geyser’s project gives U.S. Geothermal five completed enhanced geothermal production/injection wells which have enough steam production for about 30 megawatts of power. Enhanced geothermal production/injection (EGP) geothermal wells are drilled to about 10,000 feet deep, and have cooled water injected deeply into the ground which then travels in fractures in the deep rock. The water then gets heated and is forced out a separate borehole where it has become steam and is used once again to push a turbine, after which the water is cooled and sent back into the ground. The advantage of enhanced geothermal systems is that it does not require naturally occurring hydro-convective resources. MIT’s Institute of Technology estimated that enhanced geothermal technology can provide up to 100 gigawatts of geothermal power.
US Geothermal reported a net profit of $1.9 million on $28.8 million in total sales in the twelve months ending March 2014. At the end of March 2014, US Geothermal reported a total of $204.5 million in tangible assets or $1.97 per share of which $0.38 is in the forms of cash and financial assets. At around $0.65 per share, the company is trading at about 33% of tangible book value. U.S. Geothermal, Inc. appears to be a tiny gem that is both overlooked and undervalued.