James Hodgins Neptune Wellness Solutions Inc. NEPT-T SHORT Jan 14, 2019

This is really, really undervalued here. This owns 35% of Acasti Pharmaceuticals, manufacturer of a drug which has great test results in reduction of hypertriglyceridemia, as well as having positive benefits for lowering your LDL and increasing HEL cholesterol. They are going to be going into phase 3 in the next 12 months. Over half the value of the company is represented by cash on the balance sheet. Their main business is krill oil and nutraceuticals, which was struggling for a while. They’ve turned this around and are starting to make some acquisitions.

A super frustrating stock. It has been discarded by the market because it has taken much longer to recover. New management came in about 2 years ago, and have done an excellent job. Last year they more than doubled revenues and turned it profitable after a number of years of struggling. The really exciting part is that they own 35% of Acasti Pharmaceuticals. In his viewpoint, this is a huge opportunity. The stock is trading around a $25 million market cap, and they have almost $10 million in cash. Going into phase 3 trials, and thinks their drug has multi-billion-dollar potential.

He doesn’t follow this company. Over the last 5 years, they’ve lost about 70% of value per shareholder. When a company is below $100 million, having come from above $100 million, he is not a big fan.

Has been an under performer over the last several years. However, it is moving forward and they’ve grown over the last year. New management came in about 1.5 years ago made all the right changes in moving the company forward. Unfortunately, the stock hasn’t performed. They’ve been caught up in this money flow issue of a flow away from small-cap companies. There will be a catalyst that comes along. Management and the board have been buyers of the stock over the last year, which is a pretty positive signal.

This is undergoing a transition. They have vested the lions share of their Neptune krill oil business, and entered into partnerships with other players in that market. Has a plant in Sherbrooke which is a very good oil processor, and they want to become a leader in the marijuana oil processing market. An evolving company and he likes the story longer-term.

This is krill oil extraction. In August, they had a news release saying they may no longer be able to call themselves a growing concern, essentially a warning there is a security risk now. Recently announced they are going into the cannabis oil business, and the stock surged on the news. There are no revenues yet and they don't have a license, so nothing has really changed. Too speculative for him.

(Market Call Minute.) This continues to turn around the business. Had a problem with one of their extraction processes, but have now figured that out. Going forward, there is a pretty good opportunity for them. This is one he continues to watch.

They were a healthy food ingredient company and then got into the marijuana space.

A holding that he had for quite a while. They decided to take his profits. They migrated from krill oil processing to marijuana processing. Management is great, fantastic guys. This could be one of the good solid performers in the marijuana sector, but he is concerned about the sector and the valuations that the market is giving to them.