News Details – Smallcapnetwork
Trading Alert: Green is Good - New Global Energy, Inc. (NGEY)
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February 2, 2024

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PDT

Good Tuesday morning, friends and fellow traders. As mentioned on Monday, we've got a new trading idea for you today that's going to become a Featured Stock at the website after the market closes on Tuesday. We're just giving loyal newsletter readers something of a sneak preview as a way of saying thanks. As we also told you last week though, today's new featured trading idea requires a bit of an explanation. It could start to feel complex (even though it isn't) if not handled in the right order. So, we'll set the stage first. What's Moringa? It wouldn't be out of line to call moringa what many are calling it... a superfood. Moringa oleifera is a fast-growing tree that produces leaves and seed-pods which contain an amazing amount of nutritional value. On pound-for-pound basis, moringa has 25 times more iron than spinach, ten times more vitamin A than carrots, four times more protein than eggs, and boasts about a dozen more "X times more than" benefits. It's also rich with antioxidants, minerals like calcium and magnesium, and more. In fact - and I don't say this lightly - if the human race had to pick just one plant-based food to survive, moringa would be the ideal choice. As for how it's used/served, it can be dried, turned into powder, made into tea, cooked fresh, and a bunch of other ways. Moringa isn't just a source of nutrition though. It's also got medicinal value, being linked to lower cholesterol, lowering of blood sugar, and anti-inflammatory activity. It's always been around, used in the Far East for a multitude of purposes. But, it's only recently been welcomed with open arms in the United States... and even then it's only scratched the surface in the U.S. There are several reasons for that, perhaps the biggest of which is simply that it's not commonly grown here. As it turns out, though, it can grow here - it just needs to be grown in the right place... like California. Here's the amazing part - the moringa market is estimated to be worth more than $4 billion per year today, and is projected to be worth $7 billion by 2020 as more and more people start to learn about its benefits. That translates into an annual growth rate of 9%. Even if the market didn't grow one iota though, $4 billion is still more than an enormous opportunity. [Keep this idea in your back pocket for a minute it or so.] Introducing New Global Energy Have you ever heard of New Global Energy (NGEY)? I'd be surprised if you had, since the company as we know it today didn't really come into existence until August of this year. More important, the company as we know it today has yet to report its first quarterly results, and for all intents and purposes only got the revenue ball rolling in just the past few weeks... and didn't hit proverbial jackpot until today. That's your edge with today's alert; you're going to have a good idea of what's coming, and few other people will see it until after the fact. New Global Energy is a two-pronged company. It breeds fish to sell into the seafood market, and it grows (wait for it.... wait for it) moringa to sell to the nutrition and supplement market. We already know moringa is a huge opportunity, but the seafood market - tilapia, to be specific - can be plenty lucrative too. But, to fully appreciate the NGEY opportunity, you have to understand the amazing and slightly ironic back-story for New Global Energy. Back in 2007 and 2008 oil prices were soaring, which meant gasoline and diesel prices were soaring. For most companies as well as consumers, the cost of gas was debilitating. It was especially tough on seafood suppliers, as the higher cost of fuel just couldn't be offset by higher market prices for fish, shrimp, and all the rest. Some aquafarms were forced to shut down. Others, like New Global Energy (back when it was Aqua Farming Tech), went into hardcore, hyper-efficient, full-on cost-cutting mode to make sure they survived. These measures included the installation of solar panels to provide electricity at its Coachella Valley aquafarms in California, implementing a way of recycling the water its fish live in (water is very expensive in California, especially for fish farms), and growing its own fish food. Care to guess what it found was a great AND cheap source of food for fish farms? More on that in a second. While the price of gasoline and diesel fuel has since pulled back, the cost-cutting and efficiencies New Global Energy/Aqua Farming Tech was able to find are still in place, while seafood prices have held up if not moved a little higher in the meantime. What you're left with is a lean, mean, fish-farming machine that isn't dealing with a lot of domestic competition. That's big opportunity #1... a thriving fish farm. Obscure? Yes. But, obscure just means few others have embraced the opportunity yet. So what's opportunity #2? Remember above we mentioned Aqua Farming Tech started to grow its own fish food as a means of cutting costs? As it turns out, moringa was the plant of choice to serve as the basis for that fish food since it was packed with nutrition. NGEY learned how to grow a lot of it... the proverbial good stuff in particular. Now, bear in mind this was at a point in time when few people really knew how big moringa could be. The big buzz and big bucks for moringa didn't materialize until afterwards, and didn't really hit a critical mass until this year. Thing is, now that it has, New Global Energy is already perfectly-positioned to be a huge North American supplier of the wonder plant that up until now has pretty much had to be sourced overseas. Maybe it was a coincidence. Maybe it was luck. Maybe it was grand design. Whatever it was, it's allowed NGEY to become a company worth a very close look. Why Now? That is the big question, isn't it? Why now? There are multiple answers. One of them is the fact that Aqua Farming Tech didn't officially become New Global Energy until August via an acquisition, and in the meantime the company has seriously ramped up its capacity to produce fish and moringa. Thing is, the company has yet to report any quarterly results with all the new assets in place - very few people realize what's happening here, nor do they realize it's happening right now. You do. As for the potential, we've got a pretty decent idea of what kind of revenue moringa could produce, though we have to make a few suppositions about the company's seafood ventures. It was back on October 5th the company said new acreage at its Mecca, California farm could annually produce as much as $9 million worth of moringa. The company's website has already noted that the 6000 moringa trees its planted in Thermal, California plus another 10,000 trees at its Mecca farm plus 20 acres of moringa tree in addition to a possible extra 100 acres in Costa Rica could produce $15 million worth of moringa every year. It wasn't clear if the new Mecca acreage is in addition to the land that could produce $15 million per year, or overlapped with that figure. Either way, between the land the company's already got plus the other land the company is looking to add, we can reasonably say we're talking about annual sales in the teens to maybe into the 20's of millions of dollars. As for seafood sales, that's been a bit tougher to estimate. But, inasmuch as the U.S. buys $70 billion worth of seafood per year (with most of that going overseas) on top of the fact that New Global owns 120 acres worth of fish-cultivation facilities in California, I have to think that's a multi-million opportunity as well. Something even more compelling about NGEY right now, however, is also something that's a bit ambiguous so far - last week, the company announced it had met with representatives from aquaculture feed supplier EWOS, which was recently acquired by none other than Cargill. The purpose of the meeting was discuss several exploratory projects Aqua Farming Tech is working on, including the use of moringa as part of a fish feed. Though nothing else has been said yet about that meeting, if Cargill is interested, that speaks volumes. There's no telling where such a relationship could go. What's most catalytic today, though, is this morning's announcement that New Global Energy has partnered up with International Sustainability Group -- which makes AlgaeUp(tm) bars -- to manufacture and distribute MoringaUP(tm) Protein Bars. Makes sense. Like we said, moringa truly is a superfood. I know it may sound a little unusual at first, but algae is actually a great source of nutrition without a lot of carbs and calories. One startup making algae-based food ingredients is already doing $60 million per year, and the vegetarian market is worth nearly $3 billion per year. The funny thing is, moringa is arguably an even better ingredient for power bars than what's in most power bars on the market right now. With all of that being said, for perspective, NGEY currently sports a market cap of a mere $10.9 million. Even modest success using its current revenue-bearing assets suggest NGEY is undervalued. The company is already a key player in multiple billion-dollar businesses. Again, none of this has been reflected in any quarterly numbers yet because the acquisition of Aqua Farming Tech didn't happen until August and some of the land acquisitions for moringa crops have only taken shape in the past few weeks. The MoringaUP protein bars thing wasn't announced until today. Nobody's seen New Global Energy at "full throttle" yet, but we've got a feeling once the market starts to put two and two together, it's going to be very good for the stock. Here's the press release regarding MoringaUP. If you want more on moringa and NGEY, the Small Cap Network has put together a printable report on the company and its opportunity, which can be accessed at the website. New Global Energy, Inc. Signs Distribution Agreement with International Sustainability Group to Manufacture and Distribute Moringa UP(tm) Protein Bars New Global Energy, Inc. (NGEY) ("the Company"), a public company focused on Aqua-Farming, Agriculture, and Health & Wellness, has signed a distribution agreement with International Sustainability Group to manufacture and distribute MoringaUP(tm) Protein Bars based on ISG's popular AlgaeUp(tm) bars. As a Moringa-based nutritional product, MoringaUP(tm) Protein Bars will support health through a formulation of nature's minerals, proteins, antioxidants, vitamins and omegas. ISG already has contracts in place to sell the new bars at major grocery and drug stores throughout the United States, including Walgreens and Rite Aid. "ISG's brand portfolio is an ideal complement to New Global Energy's business since it is based on providing natural, effective health solutions. We are confident that Moringa will continue to help build our Company's market edge and support future profitability as we expand further into the Health and Wellness industry," said Chief Executive Officer Perry D. West. As a nutrient-dense aqua botanical, the algae included in ISG's products include: Spirulina, a variety of fresh water blue-green algae similar in makeup to sea vegetables such as dulse, kelp, nori, kombu, arame, wakame, and chlorella; algae biomass, (raw algae); and astaxanthin, a powerful antioxidant. The market opportunity for algae products is increasingly significant as awareness of its benefits become more widely understood. New Global Energy is already a leader in Moringa and uses it as a key component of the proprietary fish feed formula that is one of the cornerstones of the company's sustainable fish farming operation. In response to growing consumer demand for healthy seafood, New Global's fish formula is free of GMOs, antibiotics and chemicals and includes an optimized blend of Moringa, nutrient rich algae and a proprietary blend of other ingredients. About New Global Energy, Inc. New Global Energy, Inc. (http://www.newglobalenergy.net ) is a public company focused on acquiring high-growth firms, assets and properties in the Aqua-Farming, Agriculture, and Health & Wellness industries. The trading symbol is NGEY traded on the OTCQB. New Global Energy seeks to create sustainable projects and protect the environment. About International Sustainability Group The International Sustainability Group, Inc. (http://www.isgpglobal.com) is an innovative, Green Technology company focused on providing Environmentally Friendly Solutions and products to preserve the environment through sustainable living. ISG takes an innovative approach to green technology and its implementation. ISG has a patented indoor commercialized algae development technology. This technology broadens ISGs green sustainable living solution, which includes but is not limited to algae based bio-oil, bio-plastic, carbon reduction and sequestration. Safe Harbor Statement This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E and/or 27E of the Securities Exchange Act of 1934 that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company and the risks and uncertainties detailed from time to time in reports filed by the company with the Securities and Exchange Commission. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the company's ability to raise necessary financing, retention of key personnel, timely delivery of inventory from the company's suppliers, timely product development, product acceptance, and the impact of competitive services and products, in addition to general economic risks and uncertainties. For more information please contact: Charlotte Luer, Director of Investor Relations cluer (at) newglobalenergy.net +1-239-404-6785