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Time to recoup investment in an ag tech firm superstar Add to ...


I have enjoyed watching you on television and now your columns through globeinvestor.com. I have owned shares in BioExx Specialty Proteins since last June when the share price was around $0.60 per share. The share price shot up to $2.92 per share a few months ago and it currently sits around $2.72 per share. I would appreciate any insights you would be willing to share about this company.


Hi Ryan,

Thanks for your support and kind words, they are greatly appreciated! You have made a nice pile of cash for yourself by investing in BioExx Specialty Proteins Ltd. . The company has developed a process that increases the nutritional yield from canola seeds. After the oil is pressed out of the seed, the meal that is left would typically be used as animal feed.

BXI has patented processes that extract proteins from the meal that produces more economic value to the cycle. It reminds me of the clever folks that developed the processing methods that help extract valuable natural gas liquids, such as propane, out of natural gas, increasing value for the producer. The charts will give us a better sense of how best to proceed given that you are sitting on a tidy profit.

Three-year chart illustrates the advance that investors have enjoyed since April of 2009 when the stock broke above resistance at $0.50 and started the climb to the recent highs. It's always a pleasure to see a chart like this, which has been generating great returns for investors. In my books, there is nothing wrong with a five bagger.

The six-month chart provides a view of the support that BXI has found along the 50-day moving average. It has tested support but caught a bounce higher. If I was holding on to your gains I would take the opportunity to sell enough to pull my original investment out of the market. Professional money managers are always taking cash out of their gains based on what they consider an appropriate weighting for a stock in the portfolios that they manage.

I don’t want you to shoot a running horse but taking your original investment out and putting it into another asset would be considered prudent. Keep up the good work and get back to beating the bushes for new opportunities.

Happy Capitalism!

Have your own question for Lou? Send it in to lschizas@globeandmail.com.

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