Wednesday, 11 April 2007

Fund Manager High On Neptune's Short-term Stock Price Potential


Hugh Cleland, Executive Vice President of Northern Rivers Capital Management was once again on BNN this morning discussing Neptune.

Mr. Cleland stated that this could be "the last chance for Canadian investors to buy the stock while it's in single digits".

He backed up his opinion with three keys reasons:

1. "The company has made a public commitment to sign an agreement with a global pharma or global food company by the end of May 2007…[Neptune] is standing behind that guidance".

2. The kind of agreement Neptune is looking at is similar to "the kind of deal that propelled Martek from a $500 million market cap to a $1-2 billion market cap."

3. We are expecting to "see a U.S. listing by the end of May, certainly by the end of June... some [US] analysts who saw the company one and a half months ago couldn't believe the stock was not trading above $15 already based on what is known now." Hugh further commented that "with milestones coming, that the company is still standing behind, you'll have [the stock] well above that level ($15) especially once listed on a US exchange."

He concluded that his analysis is that a combination of the food ingredients, an over-the-counter product and a pharma product would value the company somewhere in the range of $25-$40 a share.

To listen to the interview please click here and watch the 11:30AM EST segment.