Martek Biosciences Corp. (MATK)

A monopoly in the DHA and ARA infant formula market. A growing food business. It has a book value of $15.35 and trades at $22. Just turned free cash flow positive and by next year will have a $1 per share free cash flow run rate. Insiders just bought shares under $22. Omega 3 fatty acids are the future for babies and the elderly. Some great research coming out on Omega 3's (cardiovascular, eye, alzheimer's etc)

DHA powder is too expensive to be acepted by food manufacturers. DHA oil is not stable enough to be used in most food applications. Martek's oil will perform only as a niche product in some vegetarian foods.

I love good, solid companies trading at, or near their 52-week low. Of course, I thought New Century was a good pick, too!

Market for their oils is expanding beyond baby formula and should ramp up quickly. Stock is oversold and near support at 20.

IT WILL BE A TAKEOVER TARGET AT THESE LEVELS AS IS MARKETING NEW PRODUCTS AND TYING WITH FEW LARGE COMPANY WITH THEIR PRODUCTS

Develops and commercializes products derived from microalgae, fungi and other microbes. Products are nutritional oils used as ingredients in infant formula and foods, and as ingredients in and encapsulated for use as dietary supplements.

Martek Biosciences seems to be undervalued despite having a slightly higher than average P/E. Biotech stocks are at YTD (or longer) lows and are poised for a move upward.

Also, Lord, Abbett & Co. LLC, an institutional customer, just filed a SC 13G with the SEC for a purchase of 1,807,581 common shares which amounts to 5.60% of the company on the 9th of July.

And the finale:

Last Update: 9:15 AM ET Jul 25, 2007

COLUMBIA, Md., July 25, 2007 /PRNewswire-FirstCall via COMTEX/ --

Martek Biosciences, a DHA omega-3 market leader, announced today that General Mills has introduced under the Yoplait(R) brand, Yoplait Kids(R) Yogurt Drink, featuring life'sDHA(TM),Martek's patented, vegetarian form of DHA omega-3, a fatty acid important for brain, eye, and nervous system development in infants and children. The new 3.1 oz. yogurt product will be available at retailers nationwide in mid-August.

"We are thrilled by the success of General Mills' first yogurt product with life'sDHA(TM) and are pleased that General Mills has launched a second yogurt product to provide children with more opportunities to get DHA in their diets through life'sDHA(TM)," said Steve Dubin, Martek's CEO.

DHA (docosahexaenoic acid) omega-3 is a long-chain omega-3 fatty acid that serves as a primary building block for the brain and the eyes and supports brain, eye and cardiovascular health throughout life. There is a large and growing body of scientific evidence demonstrating that people of all ages, from infants to aging adults, benefit from an adequate supply of DHA omega-3 in their diets. Scientific reviews have noted the importance of DHA omega-3 in proper brain and eye function, and there are studies currently underway to investigate its role in decreasing the prevalence of certain neurological disorders. Yet despite its importance, Americans have among the lowest dietary intakes of DHA omega-3 in the world.

Martek's life'sDHA(TM) is unique in the market because it is derived from a sustainable and vegetarian source. Made from microalgae under tightly controlled manufacturing conditions, life'sDHA(TM) is free of oceanic contaminants that may be present in certain fish or fish oils. Microalgae are the only vegetarian source of DHA omega-3, the key omega-3 for brain and eye development and function.

5 year low, Earnings growth, Margin improvement, new product sales agreement, Inventory cost decrease FIFO,

Martek has only a handful of customers for its baby formula makings which makes its orders come in choppy. Can't follow this month-to-month, have to view financials on a much longer cycle. Stock is down now, but will recover nicely with strong insider ownership committed to its success.

product is being used in more food items every day

All 28 picks #8+ , initiated on 5/18/08, are CAPS 5 star rated, were pos on 5/16/08, have consistant gains YTD, and are among the holdings of the five top CAPS rated players.

Testing out a portfolio of smallish-cap 5-star stocks found using the CAPS screener. All picks have at least 50 allstars backing them, which should be enough to minimize star rating fluctuations. It's been less than a week, but so far so good!

Just like any trend, individuals are more health conscience. This coporation also produce other essential ingredients that are widely used everyday.

We live in a generation where everyone is trying to lose weight!

Looking at numbers I see it's doing it's fair share and pulling it's own weight, since it's in a good range. Don't know much about the company but I know biosciences are heading up to the top of the peoples minds and I like betting on the unknown. It seems like a company to take a chance on.

ZIPPITY DO DAH

Just a hunch!!!

This stock is going to explode even more because of people being more health conscious.

Martek is a great company. Profits are up. The next couple of weeks will be a winner if you choose this stock.