Omega Protein Corp (OME)

NetscribeServcs (20.77) Submitted: 1/25/07 5:04 AM : Start Price: $6.50 OME Score: 1.03

Omega Protein Inc is the largest producer, marketer and distributor of protein rich meal and oil, derived from aquatic sources. Its protein rich meal products are derived from a fish called Menhaden, and are commonly used as a protein ingredient in animal feed for swine, cattle, aquaculture and household pets. However, fish oil, extracted from same fish species, is utilized for industrial applications, additives to human food products and dietary supplements, in addition to animal and aquaculture feeds.

The Hurricanes Katrina and Rita severely damaged the production capacity of its fish processing facilities at Moss Point, Cameron, Louisiana and Abbeville during August and September 2005. It also severely damaged its shipyard at Moss Point. However all the facilities that were severely affected by the natural calamities have become fully operational. This would lead to a higher production tonnage in the coming years.

The company is in the process of building a new technical center at Houston, Texas to further develop its refined oil, OmegaPure food grade Omega-3 product line. This investment in technical resources will expand its capacity to provide technical product development support for its customers who want to incorporate OmegaPure, Omega-3 essential fatty acids into their food products. The company’s annual aggregate processing capacity is approximately 850,000 tons as of September 30, 2006.

The weather for fishing season in gulf was favorable this year compared to the devastating effects last year on account of hurricane. The Atlantic fishing season dependent on weather could still have some time left for the fishing season to complete. This could augur well for catch from Atlantic Ocean. Considering the above factors, long term investors can take exposure to the stock Omega Protein.

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