Friday, 16 September 2011

BioMedReports: Neptune Has Moved Beyond Downward Catalysts

Neptune Technologies & Bioressources
TSXV: NTB - NASDAQ: NEPT
Basic Shares: 48.2 million
Fully diluted: 53.9 million


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In an article released today by M.E. Garcia, Co-Founder of http://www.biomedreports.com/ and contributer to http://www.seekingalpha.com/, Mr. Garcia outlines the last five weeks of trading for Neptune shareholders.

He cites three main “non-fundamental” reasons for the selling pressure that has existed. Further to that he states, “All three should now be behind them, and that fact alone is likely to be a catalyst for another strong upswing for NEPT.”

The three reasons are as follows:

1) The shares from the $12.5 million financing in April became free-trading on August 18.
2) Some investors may have become worried that Neptune might be subject to the same patent risks as Amarin (AMRN) which was hit very hard starting on August 17th on reports that a key Amarin patent application was rejected by the US Patent and Trademark Office.
3) Just as it seemed NEPT had started rebounding (ie., the stock was up about 7% on good volume on September 1, back to $3.68), another source of non-fundamental pressure hit: the rights offering for Acasti, Neptune's pharmaceutical subsidiary.

Garcia closes out the article with the following statement, “Fundamental developments since April have been nothing but positive, and reinforce our conviction that NEPT can be a stock with a much higher valuation--especially if it gets trial results highlighting Neptune Krill Oil's efficacy in Alzheimer's. Keep in mind that this firm is fast on its feet, and that we should be entering a very strong period of positive news flow.”

To read the full article, please click here