Click here to close now.

SYS-CON MEDIA Authors: VictorOps Blog, Tim Hinds, Mike Kavis, Peter Silva, Glenn Rossman

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:

http://www.biomedreports.com/20130115119106/anticipating-neptunes-big-bounce-to-continue.html

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

Follow Us

News developments and live healthcare sector updates are available constantly via twitter at: http://twitter.com/BioMedReports

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 del.icio.us Add to Newsvine

Media Contacts Only:
M. Davila
Assistant Editor
BioMedReports.Com
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
VictorOps is making on-call suck less with the only collaborative alert management platform on the market. With easy on-call scheduling management, a real-time incident timeline that gives you contextual relevance around your alerts and powerful reporting features that make post-mortems more effective, VictorOps helps your IT/DevOps team solve problems faster.
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, will discuss why containers should be paired with new architectural practices such as microservices ra...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been ...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focu...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
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, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
SYS-CON Events announced today Arista Networks will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Arista Networks was founded to deliver software-driven cloud networking solutions for large data center and computing environments. Arista’s award-winning 10/40/100GbE switches redefine scalability, robustness, and price-performance, with over 3,000 customers and more than three million cloud networking ports depl...
Application metrics, logs, and business KPIs are a goldmine. It’s easy to get started with the ELK stack (Elasticsearch, Logstash and Kibana) – you can see lots of people coming up with impressive dashboards, in less than a day, with no previous experience. Going from proof-of-concept to production tends to be a bit more difficult, unfortunately, and it tends to gobble up our attention, time, and money. In his session at DevOps Summit, Otis Gospodnetić, co-author of Lucene in Action and founder...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, will explain the best practices of continuous testing at high scale, which is r...
Thanks to Docker, it becomes very easy to leverage containers to build, ship, and run any Linux application on any kind of infrastructure. Docker is particularly helpful for microservice architectures because their successful implementation relies on a fast, efficient deployment mechanism – which is precisely one of the features of Docker. Microservice architectures are therefore becoming more popular, and are increasingly seen as an interesting option even for smaller projects, instead of bein...
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...