OTCPK:NEPTF - Post by User
Post by
gwrbion Sep 08, 2011 10:22am
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Post# 19022073
Continued price weakness
Continued price weakness
In my mind, this continued price weakness is entirely due to all of the low price financing issued in the last 6 months, and throw in larger market volatility which always has more dire consequences for small caps, and there is way more selling than buying for NTB/APO.
Since January 1st, NTB is still up 50%. But the upward movement was bound to be crimped by all the shares issued in the low $2's earlier in the year. Same for APO, the share price has fallen back from $2 entirely due to the rights offering at $1.25 - as long as you can get in for that kind of price, there won't be a lot of 3rd party buyers at $1.65- $2.00.
We need to get through this period of big picture volatility, and get all these cheap shares absorbed into the marketplace, and on the assumption NTB/APO is now flush enough with cash ($15M-$20M, and thus no new financing required), we should be off to the races.
Everything I am hearing at the operations level is promising, and we continue to await the CaPre clinical trials update and the Neslte/Yoplait and production expansions etc., I fully expect $4-$5 share price by year end.
As for the APO rights offering, look for a substantial exercising even if the market price hovers around $1.25. It is the big volume buyers that will exercise. The small retail buyers can always buy their 1,000 shares on the open market. But, the 10,000-100,000 share buyers can't. Soaking up the rights and exercising will allow a larger player to establish a meaningful position.