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The Ubika Research Cleantech Stock Watchlist
SunOpta Inc (STKL)
Company Name: SunOpta Inc.
HQ Location: Brampton, Ontario
Company Website: www.sunopta.com
Closing Share Price on July 7, 2010 in NASDAQ $4.03
Shares Outstanding 65 Million
Market Cap: $262M (USD)
52 Week Range $2.00 - $5.27
Average Daily Volume 264,000
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The Ubika Research Cleantech Stock Watchlist is very useful to find interesting cleantech stocks that are featured on our site. This watchlist profiles green technology stocks and provides you with cleantech news and information on cleantech investing.

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Business Overview

SunOpta, Inc is a vertically integrated company that primarily operates in the natural and organic food sector of the food industry in North America.  The company specializes in sourcing, processing and distribution of natural and organic food products integrated from seed through packaged product.  SunOpta has 3 divisions:
  • 1. SunOpta Food (93 % of the revenue) specializes in sourcing, processing, distribution and marketing of natural, organic, kosher and specialty food products
  • 2. Opta Minerals Inc. (TSX:OPM) (66% owned by SunOpta), which specializes in producing , distributing and recycling of environmentally friendly industrial materials like Silica free loose abrasives, roofing granules etc.
  • 3. SunOpta BioProcess Inc. which engineers and markets proprietary steam explosion technological systems for paper, food processing and bio-fuel industries.
+ More info

What is interesting?

  • SunOpta is considered a global leader in natural and organic food products. The healthy food industry is positioned well for global growth.
  • The key factors driving the market growth include growing obesity, strong regulatory push, ageing population, positive linkage between diet and health, and desire for sustainable health alternatives.
  • SunOpta has a vertically integrated model: It sells seeds to farmers, buys the organic products from farmers and then packages the product to make it ready for resale.
  • The company has all the essential components: integrated manufacturing platform, sourcing and trading platform and a distribution platform.
  • Recently SunOpta sold its Canadian distribution business for a cash consideration of $68 Million.  The company intends to use the proceeds to pay down debt.
  • Well capitalized with good cash position of $20.72 M dollars, (as of Dec. 31, 2009) allows the company to invest for growth.
  • Company is well positioned to explore and take advantage of high growth organic food industry.
  • The company claims it is the #1 organic soybean processor in US, #1 processor and packager of organic aseptic soymilk in the U.S, #1 producer in the world of oat fiber for the food industry and largest supplier of internationally sourced organic ingredients in the world.
  • Well diversified portfolio of products in natural and organic food sector allows the company to grow fast. Organic sector is still only just over 10% of retail grocery sales in Europe the most advanced market – suggesting there is room for market growth.
  • Except for 2009, the company has a history of increasing revenue, year over year; and Q1 2010 revenue is 14.9 % above the Q1 2009 revenue. In Q1 2010, the revenue was $266 Million.
  • After paying down the debt from its sale of distribution business, the balance sheet will become healthier.
  • Most major grocers carry Sunopta’s products.

Risks

  • Organic and natural food sector is still a small part of the huge food industry
  • Natural and organic foods are mostly expensive and growth in this sector may slow down due to the weak economy
  • The company is still not profitable, even though it has revenues
Note: This Clean Tech stock watchlist is brought to you by SmallCapPower analyst "Raj Ravindran"

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