Neptune Wellness Solutions Inc NEPTF

Good things may still happen but

[newdant]

I'm out. Management had declared that the existing business would grow at low double digit but Quarterly Year to Year just reported has grown at only 2%. Neptune has been more transparent about business volume - 80% capacity commitment all from Canopy, but there have been no new sustomer announcements since last June 18th.  Meanwhile Valens has announced three or four additional extraction contracts very recently - one being Canopy - and this in just the last three months. They announced extraction expansion to 340000KG earlier this week. 

Also we have seen several scandals in the cannabis space where end products were tainted and had to be recalled and this I think is a big risk right through the supply chain. One that in my mind we will see again and again.

Valens is a licensed testing facility and provides contract testing services and to my knowledge is the only one in Canada which I think gives them tremendous credibility and some advantage in the marketplace.

Neptune will undoubtly sign on additional customers and they may get bought out at a significant premium which only time will tell, but I'm thinking there is a manufacturing risk here and as they have not been able to grow Biodroga even with the Maximil license etc etc, doesen't give me the confidence that they can succeed on the B to C side with cannibis, and I think that license ans ensuing revenues couls be a long way off?

That said I certainly have respect for management. As late comers I think they accomplished a lot and no doubt Jim Hamilton is a player. 

I do not own Valens either but if I get back into the cannibis space I will probably look there first unless Neptune can reel in some tangible business and attain the retail license.

And WEED - no thanks. Although growing rapidly theres just too much air under the stock with revenues ~100M and market cap ~20B  WOW wish I had owned it :-(

GLTA