Tuesday, 16 August 2011

Roth Capital Reiterates Neptune Buy

Neptune Technologies & Bioressources

Basic Shares: 48.2 million
Fully diluted: 53.9 million

The Roth Capital update was prompted by a "rogue" Q1/F12 revenue consensus that appeared on an Internet site that called for $16.7 million in sales versus the $4.3 million that was reported.

Following the release of the first quarter numbers, the stock quickly dropped about 13% to the $3.80 range on large volume as it appeared NTB had missed revenue targets by a mile. However, the unexplained Internet site revenue consensus was wildly off the mark, which was unfortunate for those folks who follow the site and sold their stock!

Reality is that Neptune's $4.3 million in quarterly sales slightly exceeded Roth's call of $4.2 million. The U.S. investment firm reiterated it's $9 target.

Today's activity graphically illustrates the speed at which information moves through the online world and how quickly investors react; even to wrong information.

As of this writing, the stock had climbed back over $4 on both sides of the border.

To read Roth's update, click here