Neptune Wellness Solutions Inc NEPTF

Investor indifference

[gwrbi]

Since the webcast last week the stock has gone sideways to slightly down.

I thought the webcast was pretty well done and was informative.  I took from it that the company has a definite plan, and Dr. Tina is very passionate about achieving it.  Management fully intends to take this company the next few steps on their own, and will have the mandate and the capital to do it.

This board has whined for years about the lack of communication, well now the level of communication is almost over the top.

I see the investor indifference, in spite of the continued positive communication, as due to two possibilities.  One being there will be no quick sell out here, and management will plod along trying to achieve the value-add themselves - and the cynics aren't happy with that.

Secondly, there remains a lot of uncertainty about Acasti, and the exercise of the warrants, and related spin out.  Since the company is trading at a very low value ($2), the market isn't assigning a dime of value to the Acasti opportunity.  And now, the company will raise almost $10M from the warrants, for an initiative the market isn't assigning any value to.  This creates implied dilution.  A bunch more shares issued with no value increase (other than cash).  Thus the trade sideways to down.

I find it amazing that all the references to GSK's acquisition of Lovaze for $1.65B in 2007 (and how CaPre could be far superior) haven't done anything for the NTB SP.  $1.65B for one product line represents the equivalent of $40/share for NTB, and yet we remain in the $2 range.

I am definitely warming up to the direction management is taking, and more than willing to await the slower, but still certain, value-appreciation.