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What is it about running several large boats and a couple of air spotter planes that is more financially rewarding than simply growing flax for the omega 3 protein? http://www.jeffersoninstitute.org/pubs/flax.shtml

I would think that the boat/plane investment---in a harsh saltwater environment---would be significantly higher than simply contracting with several thousand farmers to grow the flax for you. Not only do you get to market omega 3 protein, but you also get fiber for the old farts who need fiber in their diet to remain regular. Seems to me flax has more bang to the buck than running all these boats and planes...and in theory it would more than offset the loss of 250 water related jobs in Reedsville with hundreds or thousands of farm related jobs elsewhere in the State.

What are the business numbers behind the two methods of obtaining omega 3 protein? Is flax more profitable (or has more future potential for profit than reducing menhadden)?

If flax is more flexible, has more products to market, and more profitable, why isn't the message getting out? Maybe it did, and that is why the TX billionaire who used to own OP sold it.
 

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Omega Plunder

With flax you need to make an investment into land, seed, fertilizer and equipment and you are at the mercy of the weather.

With commercial fishing you just are a "taker" with no investment other than the equipment. What reinvestment do they make for next years crop ???
 

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There's really no reason to target Menhaden in the name of"Saving lives with the help of Omega"Omega -3 Fish oil tablets are also made from Sardines,Herring,anchovy,mackerel,& salmon, and yes flax oil can be used for the same use even on salads.The claim on the bottle of Omega fish oil products says"MAY" reduce coronary heart disease.There's much faster medicines on the market to reduce cholosterol such as Lipitor etc.The old saying an ounce of prevention is worth a pound of cure fits well here.The Omega bottles won't have this message on their bottles but Your doctor will tell you to change your diet & excersise.Eating red meat may be the worst thing you can do.
 

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PS The reason I know this is because a year ago I had high cholosterol.I took Lipitor for about 2 months and it went down,so he took me off of it.My doc told to to take 2400 mg of Omega 3 every day about 9 months ago.My cholosterol went back up.So much for omega 3.I'll have to watch what I eat...it's that simple.
 

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Article in the local paper today saying that DuPont and Monsanto have a joint venture to produce Omega 3 from soy beans. The article said this was driven by the concern that there is not enough "cold water" (salmon, etc) to support the future demand. Maryland looks like a great place to grow soy beans !! Don't need a net or spotter planes.
 

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I think that Omega is dieing a slow death. It's now owned by the type of investor that won't wait long before unloading its shares if it doesn't quickly see a decent return, and the cap will chase reputable investors away, as will the continually increasing competition pressure from other omega-3 sources. Omega also continues to be fined by VA for environmental/workplace issues, such as cyanide leaks, a likely sign that it simply doesn't have the money to address basic maintenance problems. I give it three more years, tops.
 

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The reason for LY's isn't just Omega 3.

LY's are also processed into fertilizer, pet foods and who knows what else. Can Flax seed be replacement for the other uses of LY's?

I have a feeling they use the excuse of Omega 3 fish oil because there is a supposed health benefit. If there's a health benefit, the general public are more willing to plunder a resource.

- Dae
 

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Dae,

You are correct. Omega is publically traded and they jumped on the Omega 3 bandwagon as leverage for both the last few takeovers and mergers, but also to bolster the stock price...kind of the same way cattle futures took off after its cholesterol decline with the Adkins press and popularity. I doubt the fertilizer use and the other applications of menhaden would give the company the kind of bounce Omega 3 did as there are some very non-pc environmental concerns with those others.

Don
 

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I think that Omega is dieing a slow death. It's now owned by the type of investor that won't wait long before unloading its shares if it doesn't quickly see a decent return, and the cap will chase reputable investors away, as will the continually increasing competition pressure from other omega-3 sources. Omega also continues to be fined by VA for environmental/workplace issues, such as cyanide leaks, a likely sign that it simply doesn't have the money to address basic maintenance problems. I give it three more years, tops.
Wishful thinking, privatization (along with hedge funds) are the latest institutional investment craze. The "harvest" cap is not an issue, viewing fines as cost of doing business is nothing new, and Omega has license to rape. Strong buy.
 

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Then why did Zapata have such a difficult time unloading its shares? And the cap is an issue because it hinders growth.
 

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Zapata is nothing but smoke and mirrors, they make and loose money at a whim, It was originally set up as an energy company to play accounting games way before Enron. Now its just a rich mans play thing. The largest OME holders are institutional investors. The following quote is from an Online Investment site.

...The offer arrived just months after Zapata announced it was looking at "strategic alternatives" for its fish meal business. The buyback offer, coming without any disclosure by insiders of their intentions for their only business, is "a cynical maneuver designed to catch people napping," says Thomas McKay of investment firm Simplon Partners. He believes the Glazers will wait for the dust to settle before taking Omega Protein private at a lowball price. Getting access to Omega Protein's $29 million in cash and $30 million annual operating income (earnings before interest, taxes, depreciation and amortization) should boost the value of Zapata's shares far above the $28 offer--a boon for Zapata's largest stakeholder....

Do you really think this is about Omega3? Its not. Its about $$$.
 

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Of course it's about $$$ (I don't recall saying otherwise). Interesting quote. Do you have a cite?
 

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Also, from the company's last quarter 10-Q:

"Although the Company has not completed its 2006 fishing season nor completed its final analysis, preliminary analysis indicates that 2006 oil yield results for production through September 30, 2006 have been the poorest in recent Company history. For illustrative purposes, the Company's oil yields for the 2006 fishing season to date are lower by 28% compared to those in the 2005 fishing season and are lower by 24% compared to the Company's 10 year oil yield average. The causes of lower fish oil yields are believed to relate to fish diet, weather and water temperature but are not generally well understood. The impact of these poor oil yields have resulted in significantly higher per unit inventory costs and few volumes available for future sale. These higher costs and fewer volumes available for sale will adversely impact future financial results for the fourth quarter of 2006 and first quarter of 2007, and to some extent, the second quarter of 2007."


It's also suing its insurer to try to recover for damage to its Gulf facilities. I suspect that it has put a fair number of eggs into that basket.

On the other hand, some folks think that Omega may be a strong investment opportunity while its down, but its filings sure don't offer much encouragement. We'll see.... (I still say three years, tops, at least for the fish oil business. It's possible that Omega's technology investments in Houston may be for refining/improving other sources of Omega3. Maybe it plans to shut the fish oil business altogether and just license omega3-related technology. Who knows.)
 

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10-Q, nice, disclaimer: I have no affiliation to, nor do I own any Omega Protein or Zapata Corp. I have no knowledge of either corporations' dealings other than that information which is public.

-Take a quick peek at the insider trading disclosures for OME, and you'll see motivation to stay in business beyond the reported 4-10 million in annual profits.
- Fish meal and its derivatives is the key to the longevity of this enterprise. over 55% of the menhaden fish meal production capacity is located in areas adversely affected by the El Nino cycle. Omega is the only large operation not affected by it.
-The Global demand for fish meal is expected to increase, while supply will remain constant.

Please don't misunderstand my position, I would love to see Omega go out of business tomorrow. There is no doubt in my mind their operations hurt the ecology of the Bay. What I'm saying, is that it's not going to happen. Too much money to be made, and unfortunatelly, that seems to be the only objective of corporations these days.

We can do a 3 year wager maybe? I got a tog trip, what you got?
 

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OK, Lou. I've always wanted to fish for Tog, so why don't we plan for a Tog trip sometime in March, 2010. If Omega is still in the business of purse seining (or another close equivalent of mass harvest) in the Chesapeake on March 9, 2010, I'll cover the fee for your spot on the trip. If not, you cover the fee for my spot. It's a win-win (at least for me, since if I'm not bound to go on such a trip, my wife will never let me).
 

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I don't want your money, the whole point is to go fishing. Feb would be better for togging. You have over 1000 days to get permission. Nothing like wrassing a guy for over 8 hrs on a cloudless 20 degree winter day.
 

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Too funny.....can i bet too? please please please? I have an opinion on this topic and after turning over a few stones I wanna bet! It warms my heart to see all these anglers
with such educated opinions. To quote a local retailer up here" An educated consumer is
our best customer".
 

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I don't want your money, the whole point is to go fishing. Feb would be better for togging. You have over 1000 days to get permission. Nothing like wrassing a guy for over 8 hrs on a cloudless 20 degree winter day.
Ok, I'm working on the permission slip then (really).
 

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Too funny.....can i bet too? please please please? I have an opinion on this topic and after turning over a few stones I wanna bet! It warms my heart to see all these anglers
with such educated opinions. To quote a local retailer up here" An educated consumer is
our best customer".
I got 2 words for you...... Martha Stewart.

:hysterical: :hysterical: :hysterical: :hysterical: :hysterical:

ps: Where are my donations?
 
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