|By Marketwired .||
|January 15, 2013 07:01 AM EST||
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: http://biomedreports.com/fdacal.html
News developments and live healthcare sector updates are available constantly via twitter at: http://twitter.com/BioMedReports
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
Media Contacts Only:
e-mail: Email Contact
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
Aug. 30, 2015 01:30 PM EDT Reads: 208
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
Aug. 30, 2015 01:30 PM EDT Reads: 173
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
Aug. 30, 2015 01:00 PM EDT Reads: 265
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
Aug. 30, 2015 12:00 PM EDT Reads: 255
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
Aug. 30, 2015 11:00 AM EDT Reads: 163
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
Aug. 30, 2015 10:30 AM EDT Reads: 426
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 30, 2015 10:30 AM EDT Reads: 864
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
Aug. 30, 2015 10:15 AM EDT Reads: 211
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
Aug. 30, 2015 10:00 AM EDT Reads: 328
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
Aug. 30, 2015 10:00 AM EDT Reads: 217
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
Aug. 30, 2015 09:45 AM EDT Reads: 182
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
Aug. 30, 2015 09:15 AM EDT Reads: 605
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
Aug. 30, 2015 09:15 AM EDT Reads: 434
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Aug. 30, 2015 08:45 AM EDT Reads: 568
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Aug. 30, 2015 08:45 AM EDT Reads: 336