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  5. BOIL: Would appreciate your thoughts on this small cap company. [Beyond Oil Ltd.]
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Q: Would appreciate your thoughts on this small cap company. Could it be a multi bagger in the next 3-5 year time frame?
Thanx
Asked by Gary on August 07, 2024
5i Research Answer:

BOIL is already up 226% this year, bringing market cap to $88M. It has $1.7M cash (plus $2.5M from a recent financing) and minimal revenue. It is still losing money, with negative cash flow. Insiders own 29%, making the share float quite tight. Its process to reduce fatty acids from cooking oil is gaining traction, and it has signed some customers in the fast food sector. Expectations are VERY high here, and a couple of contracts are fine, but do not yet confirm BOIL's ability to compete and, more importantly, make money. Certainly it is interesting, but it is going to need more capital to grow, and needs to be considered very speculative at the current valuation. We would like to see more cash, less cash burn, and a wider array of customers. But there is potential here if it can win more contracts. We cannot independently confirm its technology, so need to see customers and repeat orders for better validation here.