Neptune Technologies (NASDAQ:NEPT)
CAPS Rating:
The Company develops proprietary and potent health ingredients from underexploited marine biomasses, such as krill, with its patented extraction process.
The Company develops proprietary and potent health ingredients from underexploited marine biomasses, such as krill, with its patented extraction process.
Recs
Neptune Technologies has been a down thumbing Fool's nemesis for some time now. The company can report 20-30% improvements in sells because it had virtually none a few quarters ago. Yes, I see growth potential if Krill hits the nutrition market, but too much growth is already factored in. I've gotten burned by some of these wanna be vitamin, save the world, cure the common cold plays in the past before reality settles in. I was trying to hold ammo, but in this economy, I don't see how this one can hold out without a whole lot of fishy business.
There are getting to be too many shares outstanding and the scales will eventually tip.
Market cap $229 Million on a company with negative cash flow and a $0.55 book value. Made it to the Nasdaq which also caused me to hold my thumb, but NO institutional investors to soak up shares. Only about 200k traded daily which also generally causes me to hold input as price swings can occur easily.
Overvalued even if one accepts the medical benefits. Needs to get cash flow positive and make up some book value ground to merit market cap OR market cap needs to come back down.