After the market closed on Friday, November 14th, Canadian Insider disclosed that 9 insiders purchased shares of Neptune Technologies (NEPT) in the open market during the past week, including the Company’s interim CEO, Andre Godin, and new Chairman, Pierre Fitzgibbon. In the aggregate, insiders picked up 95,015 shares at an average cost of CAD $2.09 (summary below). These transactions are particularly significant when compared with Neptune’s average trading volume of 93,000 shares.
Neptune, a company trading on the Nasdaq (NEPT) and Canadian TSX (NTB), develops and commercializes krill oil derived products for the nutraceutical and pharmaceutical industries. Activist investor George Haywood explains here why he’s optimistic about his investment in Neptune. Mr. Haywood, who owns an approximate 10% of Neptune, is confident Neptune can be the next success story in his portfolio which includes previous winners like Sarepta and Martek.
Catalysts Driving Insider Optimism
Announcement of Permanent CEO
Back in April 2014, Haywood and a group of other Neptune shareholders took an activist approach to shake up Neptune management and Board. Since, a new Board of Directors has been formed and a search for a new CEO has been ongoing. This search is expected to be concluded by the end of November.
“I am hopeful to make an announcement by the end of November, at the latest” Source: Chairman Fitzgibbon – FYQ2 Conference call
A competent management and Board with proven track record is the first focus the activist investors targeted. Neptune is considered the pioneer in krill oil production and, as a result, has utilized a strong patent portfolio to settle infringement cases with other krill oil manufacturers. In other words, Neptune is at the helm of this industry and has their hand in every krill oil player’s pocket through collected royalties. Having a management team that can capitalize on Neptune’s competitive advantages will be critical for operations moving forward.
