How about some facts?
The Q2 numbers as released on Thursday were bang on with the Roth analyst's report from July (yeah, the one with a $9 SP target). Sales were actually a little higher, and gross margin at 51% was actually higher than Roth's estimate of 50%. Roth estimated a small operating loss. Neptune's operating loss was entirely driven by R&D from Acasti (which will pay a 100:1 payback if CaPre proves successful), and a non-cash stock option accrual (which is a GAAP requirement when the stock moves up). Like any junior cap, if the SP moves higher as NTB did Feb-July, there becomes an inherent gain to the holders of the options. Again, the options are fully aligned with shareholders. If the market cap goes from $100M (@ $2.25) to $187M (@$4.25), there has been $87M in paper gains (and so a $1M stock option accrual is a small price to drive management performance). The $1M is a paper accrual to go with the $87M paper gain. Management can't cash in the options until vested, so they only "get rewarded' if shareholders get rewarded.
Nowhere did anyone predict a significant operating profit for 2011 or 2012. As long as sales are climbing from $12M per year to $20M per year, you can't expect a lot of profit yet. Further, ongoing R&D (clinical trials) at $3M-$4M a year of Acasti R&D will further erode Neptune's NKO profits.
At the current SP, Neptune's market cap is $100M. Acasti's is $75M. Neptune owns about 60% of Acasti. The consolidated group has $21M in cash (after the Acasti rights offering of last month). Therefore simple Saturday night market cap math shows Neptune's current market cap (net of cash and Acasti) at less than $40M (or about $.90/share), for all of the NKO business (which is about to go mass market all over the world) and the neuro-pharma business which is about to be spun out to shareholders. BTW, by far the biggest part of the story is Acasti's CaPre (represents about $6 of Roth's $9 estimate). So the krill business remains just a small part of the upside.
Sounds like a good news story to me. But then again, if I didn't believe the story, I'd sell and move on to something else.
I don't understand people, if they are long on a stock, who pollute the board with negativity. It is not constructive, and in fact, spreads bad vibes to the internet world - it does nothing good for the SP. If you have an issue, contact management, they do answer their phones.
If you aren't long NTB, then I don't know why you would type anything on this board whatsoever.
Next milestones are the Nestle/Yoplait clinical trial results and the TSX listing, and I expect a very positive improvement in revenues and earnings (before R&D and stock comp adjustments) for Q3.