SunOpta, Inc. (USA) (STKL)

leaderoftheback (81.12) Submitted: 8/08/07 11:25 PM

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As I noted in my pitch...let the modest price to sales be your starting point.

Let's engage in a little stop action here. If sales do not grow further this year, we're looking at about 800M in sales. At that rate, with 63M shares outstanding you are looking at a price/sales ratio of .79; anything less than 1 is considered potentially undervalued (assuming other metrics aren't out of whack).

The company hasn't had any money because they spend it all aquiring other businesses. Frankly, I'm not sure if all of those aquisitions are smart (yumberries, anyone??), but earnings growth indicates that most are probably accretive.

Thirdly, as someone who has followed the company since it's share price was a buck-twenty and bought in at $4, one thing the company has always done is what they said they were going to do. I think the business is pretty transparent and that is all too rare these days. They say they are an ethical business and I don't think you can really argue that.

They say 30-40 cents in earnings this year; with 8 cents plus 11 cents and solid growth and good soy and sunflower crops likely...folks, I think you can take their word for it.

Give this one a thumbs down at your peril (though I wouldn't necessarily suggest you thumbs-up it at $13...it is pretty pricey after all! Don't be surprised if it drops back to $10 if the whole market goes negative (but it closed today above it's 52 wk high...) . Over the long haul, the prospects are very bright.

AND it's added over 14 points to may CAPS score since I started this game 2 weeks ago, many thanks to you all! ;)

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cabaviator (< 20) Submitted: 8/09/07 11:06 AM

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SunOpta Announces Record Second Quarter Results; Revenues Increase 33.5% and Net Earnings Increase 55.4%. that's all I have to say!

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leaderoftheback (81.12) Submitted: 9/29/07 8:44 AM

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and it's worth noting that players with high ratings and thumbs down are getting off of that wagon. Very smart of them. I predict this will soon be a two star stock. woo-hoo! Not for nuthin', but I think the hardest thing to do is to bet against a stock, no matter it's relative market value.

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keithtarbi (< 20) Submitted: 5/01/08 2:08 PM

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Pencils2 : This may be the best comment every written about a failing company. I have seen time and time again the negative impact in a three month window after a major insider sale. I have held on to stocks like this in the past, only to write them off as a “WASH SALE” at the end of the tax year.

The borrowing of money and the selling of what little value the stock has left has given me the “EBBEEE GEEEBIES” on this one. The fact that analysts rate this as a buy further implores the theory that the CAPS community is a valuable tool. The analysts on this one are doing a 1997 “PUMP AND DUMP” and I’m not in to it. DROP THIS BEFORE IT GOES LOWER!!!! A bear is growling !!!!

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HatchingPlans (99.79) Submitted: 6/15/08 5:56 PM

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hey good call here pencils... do you think the slide is going to continue in the long run, or has the slide already happened (and completed)?

i don't think the company is nearing bankruptcy, but their business plan and industry is a tough one to make money in...

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