Topic: How To Invest

Q: Pat: What do you think about the prospects for Omega Protein? Thanks.

Article Excerpt

A: Omega Protein Corporation, $24.65, symbol OME on the New York exchange (Shares outstanding: 22.4 million; Market cap: $548.6 million; www.omegaprotein.com), mainly operates in two industry segments: animal nutrition and human nutrition. The animal nutrition business has more than 30 fishing vessels to harvest menhaden, a herring-like fish that is abundant in the Atlantic Ocean and the Gulf of Mexico. It then processes the fish at three plants in the states of Louisiana, Mississippi and Virginia. Omega Protein’s fish meal is sold to feed producers as a high-protein ingredient for the swine, aquaculture (fish farming) and pet food industries. The human nutrition segment produces Omega-3 fish oils, specialty dairy proteins and other related products. It also distributes these products as nutrient powders and food ingredients. In the third quarter ended September 30, 2016, Omega Protein’s revenue fell 3.0%, to $108.8 million from $112.2 million a year earlier. The company’s animal nutrition business accounts for 71.4% of its overall revenue. Its sales were up…