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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (95)	6/5/2001 9:12:48 AM
From: Gofer	Read Replies (1) \| Respond to of 1643

Nice idea this thread, (no dietary discussions LOL) OK, time for a dietary discussion, LOL. Let's talk about organic soybeans. I have a position in Stake Technologies (STKL). They are into 3 businesses: Grain products (primarily organic soybeans), industrial abrasives and recycling, and steam explosion pulping technology. Almost 2/3 of their revenue comes from their food subsidiary, Sunrich, which supplies 55% of U.S. soy milk. The demand for soy milk has been increasing by over 30% per annum for the last few years. Soy products have also jumped from specialty stores to supermarkets over the last few years, increasing visibility and broadening the customer base. I first tried soymilk 10 years ago and didn't like it. More recently (after buying some STKL) I tried it again and discovered that the taste has improved and variety has increased. I'm now a regular user. staketech.com Organic soybeans sell at a premium to the non-organic GM varieties that are primary used for oil and animal feed. The increase in demand for organic meat products has also contributed to an increase in demand for organic soybeans. Conventional soybeans are under downward price pressure due to increased acreage under cultivation. Some U.S. farmers are switching from corn to soy due to higher energy costs for corn production. farmdoc.uiuc.edu aes.purdue.edu STKL management predicts, and has confirmed, a 70% increase in revenues this year. The increase comes from last year's takeovers as well as organic growth. My conclusion: a bad year for soybean prices, a good year for STKL investors. Compare STKL to HAIN Celestial: quote.yahoo.com