December 28, 2006

Omega Protein a Key Flaxseed Player?

A few months ago I reviewed some of the companies that may benefit greatly from increased demand for flax seed over the next few years.

Here's another example I've recently come across. Omega Protein Corporation says they are the largest producer of Omega-3 fish oil in the United States.

They are in the business of processing, marketing and distributing fish meal and fish oil products. They sell oil products made from menhaden, which is a species of will herring found along the Gulf of Mexico and Atlantic coasts. Their financial summary says that they "processes various grades of fish meal that include Special Select, SeaLac, and FAQ Meal; crude unrefined fish oil, refined fish oil, and food grade oil; and fish solubles, such as Neptune Fish Concentrate, OmegaGrow, and OmegaGrow Plus. Omegaƃƒ‚’s fish meal products are primarily used as a protein ingredient in animal feed for swine, cattle, aquaculture, and household pets; fish oil is utilized for animal and aquaculture feeds, industrial applications, additives to human food products, and as dietary supplements. They offer fish solubles primarily to livestock feed manufacturers, aquaculture feed manufacturers, and for use as an organic fertilizer. They were founded in 1998 and are based in Houston, Texas.

I notice the stock (OME:NYSE) for this company looks like it could be ready for a potential break-out. This is their one year stock price chart. I just bought a little though I've only been watching it for three days, and I didn't do much research on the company and made my buy based mostly on the look of the technical charts. It seems this company could be a good candidate for a takeover by a larger food conglomerate. (Note that I'm not a professional investor, so please do your own due diligence before acting on this tip here.)