Click here to close now.


News Feed Item

Anticipating Neptune's Big Bounce to Continue

LOS ANGELES, CA -- (Marketwire) -- 01/15/13 -- Neptune Technologies & Bioresources (NASDAQ: NEPT) announced they will hold a conference call on Thursday, January 17th at 4:30 EST. The reason given for the call will be to discuss the third quarter ended November 30th and provide the company an "opportunity" to give investors an update on management post accident action plan to "resume operations and supply customers."

We note that management sees this call as an "opportunity," and we expect that we will find management is making progress on their action plan on most if not all fronts.

In our December 19th, 2012 article on Neptune, "Smart Investors Spot Profitable Upside in Neptune's Recovery Plan" we stated the Company has ongoing value as a reaction to the precipitous fall in the stock price, "The facts are simple; Neptune will have the Sherbrook up and running in about six months. The Company should be able to maintain supplies to customers and maintain revenues for a business segment that has been profitable for 3 years. Neptune has valuable assets; plenty of cash and the losses will be offset to some extent by insurance further preserving shareholder value. When the plant reopens, Neptune should be able to produce nearly as much in revenues as the September quarter. The Company will have new manufacturing partners, and there will be no constraints holding back Neptune from growing as much as their marketing efforts will allow. Acasti Pharma will be further along in its Phase II and preparing for its Phase III." This quote gives us subjects to focus upon in the upcoming call. We will go through each below.

The first thing we will be looking for is how the rebuilding process at the Sherbrooke plant is proceeding. We expect that the plant is proceeding on schedule, although construction during the Canadian Winter can be difficult. Along with the rebuilding update could be an insurance update. Management has stated that they have property insurance for around $20 million. Management also stated they have Business Interruption Insurance that could offset some of their losses due to the accident. One point that management probably will not touch upon regarding the facility are the rumors that they did not have proper permitting for the expansion as these rumors have been proven false.

More important will be an update regarding the Company's ability to fulfill its customers' orders of Neptune Krill Oil (NKO) and maintain revenue levels. We believe that there will be some falloff of revenues in the quarterly announcement, but not nearly a drastic as some might expect. The important fact to watch for is how the Company has been able to secure product manufacturing and maintain reliable delivery of product to customers without their own manufacturing facility. Management has spoken in the past about establishing new relationships with global manufacturing partners, and seeing them come to fruition should give investors comfort that the Company will be able to meet near-term product deliveries and grow long-term. As we stated in the previous article, we expect the gross margins to be well off in the quarter.

We believe that Neptune will be able to leverage their new outsourced manufacturing relationships to allow the company to grow more quickly in the future by outsourcing the majority of their manufacturing needs. With established manufacturing relationships, Neptune will not have to continue to grow their own manufacturing capabilities. This will save Neptune major capital expenditures in the future, as they were planning to grow the Sherbrooke facility to 500,000kg/year by 2014. This third plant expansion, with an expected price tag of $5 million, may no longer be necessary. We do not expect management to address this as it is our expectation of further manufacturing expansion, which can help Neptune accelerate their growth over time.

Lastly, we believe that management will give an update on the pharmaceutical divisions. In December Acasti Pharma gave a positive update on CaPre® that seemed to be disregarded by the investment community. Acasti released interim data on its Phase II double blinded, placebo controlled clinical study for CaPre®. The data showed a statistically significant 25% (p < 0.05) reduction in triglycerides after eight weeks of treatment in 19 patients with baseline triglyceride levels between 204 and 476mg/dl. CaPre® also decreased Low Density Lipoprotein (LDL), Very Low Density Lipoprotein (VLDL) and non-HDL lipids and increased High Density Lipoprotein (HDL). An update on next steps and recent progress for Acasti would be in line. Since the pharmaceutical divisions are seen to be major value creators for the Company an update on the neurology division should be included in the call.

We stated in the last article, "We see a path for the Company to again produce at the sales and margin levels of the September quarter beginning in about six months, and it is possible for Neptune to reclaim its lost value over the course of the next 12 months." When we wrote the last article the stock was at $1.71/share; as of the close on Friday December 11th, the stock price was $2.35 a rise of over 35% in just under a month. If the news from the call is positive, it is reasonable to conclude that the stock price can return to its pre-accident levels which would be another 100% up from here.

The full report including charts and technical analysis is available at:

Healthcare investors and Biotech traders interested in accessing BioMedReports' new complete database of clinical trials and upcoming FDA and world-wide regulatory decisions which can be used to make more profitable trades and see upcoming catalysts can go to:

Follow Us

News developments and live healthcare sector updates are available constantly via twitter at:

About BioMedReports.Com

BioMedReports is a news and research portal covering financial biotech news for the entire Healthcare Sector of the market. BioMedReports is not paid or compensated to report the news and developments of publicly traded companies. BioMedReports sells a premium product for subscribers and full disclosures and information about the stocks and news mentioned in this news release are available at BioMedReports.Com

Add to Digg Bookmark with Add to Newsvine

Media Contacts Only:
M. Davila
Assistant Editor
e-mail: Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. ...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).