For speculative investors comfortable with low priced stocks -- and for those interested in a company that is playing a role in helping fight worldwide hunger -- small cap growth stock specialist Tom Bishop recommends Nutracea (NASDAQ:NTRZ), a play on improving the nutritional value of rice.

Rice, he notes is the most consumed grain on the planet, and is the primary food source for 70% of the world's population. But despite its important role feeding the world's population, he notes that some 65% of its nutritional value is in the bran covering which he explains is stripped off during processing.

This, he believes, suggests a large potential market for Nutracea, which offers a patent technology that preserves these nutrients.

The editor of BI Research explains, "Nutracea had developed a patent protected technology that stabilizes rice bran (which is then called SRB) into an FDA certified edible product, leaving the nutritional value of the bran intact and with a shelf life of 1 to 3 years.

"There is tremendous interest in this highly nutritional product, especially from humanitarian relief organizations, the nutraceutical industry and both human and animal food companies."

In fact, he points out that over 150 projects are currently ongoing around the world, many in advanced stages, to utilize SRB. The current customer roster has 187 customers, he notes, including the likes of General Mills, Pepperidge Farms, Con Agra, Archer Daniels Midland and Purina.

"To cut to the chase," says Bishop, "Nutracea is facing demand that is expected to exceed its ability to supply it for years to come. It is currently crossing the threshold of profitability and expanding like crazy as it rides a wave of awareness regarding the value of stabilized rice bran for humanitarian aid and as an additive to breads, cereals, diet/nutrition supplements and animal food."

Capacity constraints to some extent have been holding the company back; to counter this, Bishop notes that the company recently raised $50 million for expansion that is expected to come on line in 2008 -- including the construction of one or more plants in Europe.

Overall, he explains, "There is a lot to like here. Oh, and Monsanto (owns 5%. With a story like this plus a PE of 30 on 2007 EPS and 14 on 2008, we rate NTRZ a buy to $4."

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