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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (67016)	3/31/2021 9:15:44 PM
From: E_K_S	1 Recommendation Recommended By CusterInvestor Read Replies (1) \| Respond to of 78958

Re: RKDA My RKDA position is quite small and in my Ag basket. Be advised that the company did a secondary earlier this year priced around $3/share and attracted new private party investors w/ warrants (just over 2.4mln shares) that can be exercised anytime at $3.00/share). Huge vol today (over 76 mln shares 15.6x ADV) so maybe all (or most) of those warrant holders sold to recoup their initial investment. You get a seed development company and they make their money through licenses (which I think is reoccurring every year but I will need to dig deeper). That type of income has a lower SG&A and expenses go directly into R&D creating new future seed varieties. I did not realize they had a non-GMO wheat seed along w/ the others discussed in their annual report today. They also have developed a POT seed (test beds grown in HA) and I see that has been licensed to an OR grower. FWIW, I have owned CTVA when Spekulatius first mentioned it when it spun off from DOW. It has had an excellent run and they have a similar arrangement in their seed development but pay no license fee as all of their development is done in-house. Both Syngenta and Bayer are struggling with their seeds businesses. CTVA has an opportunity to break free of license costs and expand its customer base with its products That's why I think CTVA may/could be interested in RKDA (or the other large seed companies) specifically for their patent seed product portfolio and development lab w/ ties to US Davis. RKDA's market cap only $50 million. As a CTVA shareholder, I would approve of such a deal. :-) ---------------------------------------------------------- FWIW, S&W Seed Company (SANW) is another seed company I own and have been buying this at/near BV (stated BV =$2.05/share). They still lose money and are about 3x the market cap of RKDA. S&W Seed Company is engaged in breeding, contracting to grow, processing and selling agricultural commodities, which primarily include alfalfa seed and, to a lesser extent, wheat. Alfalfa seed varieties grow in warm climates and can thrive on poor, saline (salty) soils. The Company sells the seed primarily to dealers and distributors who, in turn, sell primarily to hay and dairy farmers who grow hay for dairy cattle and other livestock. S&W Seed Company is headquartered in Five Points, California.