Wednesday, 25 July 2007

We're Okay Says Neptune in Midst Of Sliding Market


Neptune (TSX-V) management (as has The Howard Group) obviously has been hit with a great many phone calls and emails from concerned shareholders over the recent drop in the stock price based on a quick "business is fine" news release that NTB issued today (July 25th). Click here to read the press release.

Over the past five trading days the stock has dropped from about the $5.80 range to a brief dip below $4 today before volume of slightly more than 600 thousand shares closed it at $4.65.

The brief note to the market said, "....advises that its guidance on business performance remains unchanged and......Neptune indicates that it considers this unusual activity in its stock to be unwarranted under the circumstances..... Neptune reiterated that its recent announcements, including its strategic alliance with Yoplait International, its collaboration with Nestlé and the recent signing of an Investor relations agreement with ROI, a New York City based investor relations firm, represent positive developments for the company."

Many of the people contacting us at HG have been asking about the status of the anticipated listing on a U.S. exchange. The lastest info we have is "we're close" but a deal isn't done till it's done. This question has been hanging over the market since April 30th, which is when NTB mentioned in its third quarter news release that it had made application to AMEX.

As far as we know there isn't a boogey man in the closet and we have to view the price drop as a combination of a broad market that's skittish to weak at best, small cap stocks can get hurt in these conditions very quickly and there have been a couple of large sellers that have their own reasons for dumping the stock that may have nothing to do with Neptune.

On the other side, there are clearly a number of believers in the future and the blue sky simply based on the fact that people have stepped up in the past few days to buy about 1.2 million shares.

We would like to have a better crystal ball but then again, who wouldn't?