Neptune Wellness Solutions Inc. (NEPT.TO)

(A Top Pick Dec 10/14. Down 26.57%.) Healthcare company. Has a lot of upside because they are developing a drug for treatment of hypertriglyceridemia. It should hopefully go into phase 3 trials by next year. Technically it is starting to outperform now. New CEO. A table pounder at this price.

(Top Pick Dec 10/14, Down 25.12%) Their production plant blew up last year, but it was rebuilt and came back on line. However, there were hiccups. Now it is performing ahead of expectations. They are a leader in Omega 3 production. He was buying today.

(Top Pick Sep 10/14, Down 27.19%) He bought more today. It was beaten up because a plant blew up two or three years ago and they built a new one with insurance proceeds and now it is up and running. Over the next two quarters the market will see they are back to profitability.

(A Top Pick June 16/14. Down 37.08%.) Very disappointing from a stock performance perspective, but from a corporate perspective there has been some very positive things happen. They are one year further along in the development of their potential revolutionary drug, Capri, where they are talking about phase 3 trial design. It should be launched hopefully by the end of the year into phase 3 trials. Also, have a new phenomenal CEO who will help get the company turned around. Recently took a bit of a hit because of problems starting their brand-new plant, but that should be turned around by the summer. This is a table pounder.

His top pick for healthcare. Thinks this is a potential multi-bagger. Have almost $39 million of cash on their balance sheet. Just built a $30 million plant to produce Neptune Krill oil, which should be profitable this coming quarter. Also, own 50% of their pharmaceutical development subsidiary which has multimillion dollar potential. They produce Capri, a treatment for triglyceride uremia. Their phase 2 trials showed a 38% drop in triglycerides, which is 2X the drop that the current drug in the market has shown.

Acasti Pharma (APO-X) and Neptune Tech & Bioresource (NTB-T) comparison? The key for both companies is the of krill to extract fish oil. The target would be for high lipids in blood. They can be taken alone or used in combination with statin drugs.

Krill oil. They own half of Acasti Pharmaceutical (APO-X), so you have the upside from Acasti through Capri going into phase 3 trials this year. This company has great resources with the plant producing Neptune Krill oil, being sold through Natural stores, which has a beneficial health effect. 2 years ago their plant blew up in Sherbrooke Quebec. The plant just came on stream this year and will be profitable this month or next. If that starts generating cash flow, investors will start to recognize this. A new CEO will be able to start talking to investors and will be getting a bunch of new institutions involved. $150 million market, which he views as worth over $1 billion.

This is going to be one of the leaders of tomorrow. Probably one of the most exciting opportunities in the market today. They provide fossil lipids, primarily out of Antarctic krill, which has a great affect on your cardiovascular system. Very beneficial for cholesterol and triglycerides. In the next 3 weeks, their subsidiary Acasti Pharma, will be reporting a pivotal phase 2 trial, which he thinks will catalyze the stock and drive both companies up a lot in the market. A multi-bagger potential.

He is Short this. It shows up poorly in his model. Doesn’t feel that people are going to pay a big premium for krill oil versus other types of omega-3’s.

A company that has gone through a lot of issues over the last 2 years. After losing their manufacturing plant in Sherbrooke, their new plant has been rebuilt, and they are just in the process of getting the Québec government approvals to start manufacturing again. Has some blockbuster potential. Developing a new pharmaceutical through their subsidiary, called Capri, a treatment for cholesterol and triglycerides.

Has been a bit of controversial type of stock. A krill oil and omega-3 manufacturer. The big downturn last year was because of a fire in their plant so they had to stop production completely. Believes that it is coming back online. He is not a big believer in the science that he has read on. Doesn’t believe people are willing to pay premium prices for krill oil and omega-3 versus regular omega-3.

If this drops below $2.40, you want to get out. Use $2.40 as your Stop. Really not a lot of expectation.

A very important year for them. They own 50% of their subsidiary Acasti Pharma (APO-X), the developer of Capri, which is potentially a revolutionary treatment for cholesterol and hyper triglyceride. The big phase 2 trial results should be coming out sometime in the next 3-6 months. When those results come out they will either drive the stock up a huge amount, which is what he thinks will happen or it will drive it down. Stock has recently been under a bit of pressure. Raised some equity and haven’t made a real good pronouncement of their reason for it.

(A Top Pick Sept 4/13. Down 14.29%.) Would characterize this as the most exciting stock in his portfolio. Their majority owned subsidiary, Acasti Pharmaceuticals (APO-X) is developing a revolutionary cholesterol/glycerids treatment (CaPre) and have to finance to raise money for a phase 3 trial. Feels both companies are table pounding buys. Stocks have been beaten up on short-term concerns. Expects them both to double or triple in the next year.

The biotech sector in the US has been on fire. There aren’t too many Canadian biotechs and he is not sure if this would be classified as one. Not a huge fan of biotechs in general. If you own, consider exiting part of your position.