*****OUR FEATURED COMPANY****

*****  OUR FEATURED COMPANY  ****

 

*****  BioNitrogen Corp.  ***** Trading Symbol:  BION  *****

Our 2012 Featured First Alert, BioNitrogen (BION)  launched its commercial efforts on January 25, 2012 and we’re letting our subscribers know, this Company will attract considerable attention from savvy investors in the days, weeks and months that follow.

 

BION is climbing the charts, from $1.03 just two weeks ago to a $1.48 close on Friday. 

 

Why is BioNitrogen IMPORTANT TO YOU?  

Like most successful investors, we continually search for the no-nonsense very early ‘microcap’ opportunities based on similar multiples we saw with Intel, Delta, Xerox, Imclone, Mylan Labs, Porsche, RBOT, to name just a few. 

There are dozens of these amazing successful stories. BUT – how do we find them? Most experts continue to espouse the virtues of not just “doing your homework” but looking for solid business models that include what’s called “huge market multiples”. 

This refers to those Companies that will impact hundreds of millions to over a BILLION people lives every day such as Google, Apple, Exxon-Mobil or Facebook and most of the above. Companies with such ‘Multiples’ have extraordinary track records and should always command the savvy Investors attention.

So how does BioNitrogen Corp (BION), developer of a revolutionary patent-pending technology for converting renewable naturally occurring (and abundant) organic biomass waste into high-nitrogen urea relate to the companies above?

 

The BioNitrogen Corporate Business Model is based on the fact that the Company impacts an  indispensable global industry  affecting billions of people! This is a ‘multiple’ that always commands respect and attention. Here are a few world facts that will influence BioNitrogen’s rapid growth: 

1. The world population is growing and has more than doubled in the past 50 years.
2. In order to continue to feed our planet, farms throughout the world need fertilizer and ‘urea’ is the preferred form of fertilizer.
3. Yet, like oil, urea production is a serious problem worldwide. For example, the US imports almost ALL of it’s urea!
4. BioNitrogen looks like it will become the most efficient producer of urea in the world.

The importance of Fertilizer is even introduced in the new movie -  The Girl with the Dragon Tattoo . In this the first film of Columbia Pictures' three-picture adaptation of Stieg Larsson's literary blockbuster The Millennium Trilogy, we see a wealthy Industrialist Visionary played by Christopher Plummer (Henrik Vanger) discussing his family’s fortunes and where they will invest their family fortunes in the future. The well respected Mr. Vanger tells his autobiographical Author «  The future is in Fertilizer  » 

This fictional Visionary is correct. However,  a real life visionary is the CEO of BioNitrogen, Dr. Terry R. Collins, Ph.D., P.E.  Dr. Collins is positioning BioNitrogen as an emerging global solutions provider helping countries throughout the world manage the delicate balance of increasing food production while also satisfying the world’s demands for more environmentally friendly production facilities and methods. Dr. Collins and Mr. Vanger’s visions represent the corporate mission of BioNitrogen Corporation. 

In a recent article written by Rob Zurrer for MoneyTalks.net titled “Jim Rogers: Stop Buying Gold Now” Mr. Zurrer writes that  agriculture is the next big, bull market.  We couldn’t agree more and the following exert is taken directly from their article. 

Jim Rogers is good at what he does. Really good. This masterful investor co-founded with George Soros the Quantum Fund.  A fund that posted astonishing returns of 4200% in 10 years , over the same period the S&P gained a mere 47%. Rogers retired 31 years ago in 1980 at the age of 37 but is still active as a private investor. 

Agriculture: The Next Big Bull Market 

Consistent with his devotion to buying undervalued assets, he now sees the same quality of values in agriculture that he saw in gold and silver. No, he's not selling his gold and silver but he is predicting that   "Agriculture prices are still, on a historic basis, extremely depressed, and in my view I'll probably make more money in agriculture than other things" . 

Rogers thinks that the current commodities supercycle will last for 20 to 25 years, a view supported by the research of Chris Watling of Longview Economics. Whatling traced bull cycles cycles back to 1750 and identified that commodity super cycles last 20 to 25 years. As this commodity bull started in 2000, if Whatling and Rogers are correct this bull will run higher until 2020-2025.

 

In short, if you missed buying gold and silver at extremely depressed levels, if you missed participating in what Peter Grandich calls, The Mother of all Bull Markets  Rogers thinks you have another great chance to buy into an imminent bull market at great value:

It’s about demand and low historical prices. "If the fundamentals weren't right the price would not go up. Many people invested in commodities in the 1980s and 90s and didn't make any money because the fundamentals were bad, now people are investing and making money because the fundamentals are good   Rogers Said ". 

There is a powerful underlying demand for food.  When food prices surged in 2007 millions went hungry, and there were riots from Egypt to Haiti and Cameroon to Bangladesh. Rioting calmed down in 2008 prices when prices dropped but starting at the beginning of 2009 they’ve been going up and Rogers expects "more turmoil, but I didn't expect it to happen this quickly because food prices are somewhat depressed". Clearly a bull market rise from current levels will cause even more starvation, riots and urgent demand. 

 

The FAO Food Price Index measures the prices of Dairy, Oils & Fats, Cereals Sugar & Meat  

On the longer term chart real food prices were more expensive in 1917 than they are here today. Demand is there.  Agriculture will be "wildly exciting" as global food shortages worsen, according to Rogers.  "You pick an agriculture product and I'll say buy it," he said. Shortages are showing up right now as the world population has more than doubled from 3 billion in 1960 while the amount of arable farmland has been decreasing. If world population rises from its current 6.8 billion to 9.1 billion by 2050 as the United Nations forecasts, a lot of people are going to be scrambling for food.

 

In another article, published in December by George Silva, Michigan State University Extension titled  “Fertilizer prices continue to increase. The prices of all major fertilizers have steadily increased over time.“  

Mr Silva states “The November 23, 2011 approximate retail prices for major fertilizers per ton are $625 for Urea, $708 for Diammonium phosphate (DAP), $731 for Monoammonium phosphate (MAP), $645 for Potash, $404 for Urea-Ammonium Nitrate, and $855 for Anhydrous Ammonia. The price trend from February 2010 to October 2011 at four-month intervals is shown in Figure 1. Prices have steadily increased over time with urea increasing by almost $100 per ton since June 2011. 

THE BOTTOM LINE:

 

Look at Investing In BioNitrogen to Take Advantage of the Next Super cycle 

The global demand for oil, technology, next-generation electronics and social connection will continue to grow as will the demand for food. We could show you dozens of additional support Research and World Articles that will affirm BioNitrogen’s Global importance and strong future.  Simply stated, the demand for urea will continue to grow and will become a major economic variable for dozens of years.  Because of such ‘multiples’, Investors are clearly starting to take notice of leading edge Fertilizer Producers like BioNitrogen! 

Like the companies referenced above, BioNitrogen’s business model, technology, market multiples and management team look like solid criteria to join the impressive list of Companies above who have evolved from pennies into extraordinary economic powerhouses. 

BION is climbing the charts, from $1.00 a short time ago to seeing highs of over $1.55 last week upon the announcement that it has a Letter of Intent With United Suppliers for Urea Purchase. The LOI Outlines the Purchase of Up to 300,000 Short Tons of Urea Annually. 

The letter specifies the intent by United Suppliers to purchase up to 300,000 short tons (S/T) annually of urea in granular or prilled grade form. The binding agreement to be entered into will be for an initial term of three (3) years. 

"As agricultural retailers who do business throughout the United States we are challenged to keep up with the dramatic changes that are happening in the agriculture industry." states Mr. Matt Carstens, United Suppliers, Vice President of Crop Nutrients, "We are committed to creating long-term relationships with both our agricultural retail dealer owners and our suppliers. We are constantly developing innovative products, programs and services and see a close and longstanding relationship with Dr. Collins and his team at BioNitrogen." 

About United Suppliers, Inc. 

United Suppliers is a wholesale organization based in the rural community of Eldora, Iowa. The company is owned by agricultural retailers who do business throughout the United States.  United Suppliers was established in 1963 by 30 Iowa retailers joining forces to manufacture feed and has since grown to over 800 owners in 20 states, with more than 300 employees and sales in excess of $2 billion.  

Urea Production = Fertilizer = Food = Shareholder Value  

And given that urea trades at say approx. $400-600 / ton, the simple math dictates that the value of a contract of 300,000 s/t = $120 to $180m. Take a 3 year contract and you would be looking at a value of over $380 to $540m.  To You, the Investor, this indeed becomes very interesting, very fast! Certainly compelling logic for savvy investors!

 

As stated by so many well respected Global Economists and Agricultural Experts, “food and agriculture related Companies who possess proprietary advantages are great values and will drive the next demand driven bull market.” 

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