NaturalShrimp Inc. shrimp naturally raised with vibrio suppression technology is healthier, tastier, and more voluminous
NaturalShrimp, Inc. OTCQB: SHMP has high growth on tap as it advances toward a national strategy of expansion.
NaturalShrimp, Inc. (OTCQB:SHMP)
If this works as expected, the growth curve on NaturalShrimp, Inc. will be hockey stick-like. … Farming in a closed system, producing "Always Fresh, Always Natural" shrimp of superior size & quality.”
— Market Equities Research Group
NEW YORK, NY, UNITED STATES, April 2, 2018 /EINPresswire.com/ — NaturalShrimp, Inc. OTCQB: SHMP is the subject of an advisory research report by Brian R. Connell, CFA of Harbinger Research. The Senior Research Analyst has issued a ‘Strong Spec. Buy’ rating with significant near-term upside share price revaluation (a 12 to 24-month price target of $2.16 per share) as NaturalShrimp advances its new technology towards a national strategy of expansion.
The full Analyst’s research report is available at http://sectornewswire.net/NaturalShrimpReport-SHMP-Q1-2018.pdf online.
The following is independent analysis from Market Equities Research Group:
High growth on tap: The Company uses a new proprietary technology based on electrical current to clean its shrimp aquaculture tanks and raising a natural product with vibrio suppression technology (several patents filed, some already issued), superior to anything in the market, and the result is the greatest tasting fresh shrimp you’ve ever had in your life- all natural (chemical free, no antibiotics). The plan is to build facilities in each market — projections are phenomenal and demand is off the chart. After 17 years in the business, NaturalShrimp is wrapping up final quality and sustainability testing of its technology (which scientists say “appears perfectly dialed-in now”) to begin a major build-out.
Economics dictate success: The game-plan is to locate the production facilities near the consumer, wherever the consumer is they will build a facility. If this works as expected, the growth curve on NaturalShrimp, Inc. will be hockey stick-like as the demand for quality fresh shrimp is enormous (almost unlimited demand as fresh is far superior to frozen but historically geographically impractical). Each facility is approximately a US$3.6 million build-out with a ~3 year payback.
Each facility has 24 systems in it, and each harvest is on a ~24 weeks timetable, thus a fresh harvest of ~6,000 lbs can be generated weekly from the one plant — with a wholesale price of quality fresh running between US$10/lb-$14/lb, the retail being $20/lb-$22/lb, the numbers are exceptional.
The following are excerpts from the research report of Brian R. Connell, CFA of Harbinger Research:
Company Overview: NaturalShrimp operates a closed-system saltwater aquaculture facility that produces high-grade Pacific White shrimp without using the antibiotics and chemical additives today’s shrimp farms require. The Company’s patent-pending technology is potentially disruptive to the entire shrimp farming industry, which on a global basis produced $39 billion worth of shrimp in 2017. Assuming a near-term capital infusion, the Company should begin scaling up production to serve the San Antonio, Las Vegas, and New York City markets during CY2018.
– Domestic Market for Shrimp is Colossal and Growing, Strongly Favoring Supplier Pricing Power: U.S. Shrimp imports totaled 286,090 metric tons in the first half of 2017, the greatest import quantity on record. Anecdotal evidence suggests that Gulf of Mexico shrimp yields are down some 40% from their 2007 levels, pushing the need for imports higher, and going forward imports are expected to climb at approximately 5% per year at least through 2025. However, this additional volume will not push prices downwards, as the demand for imported shrimp will likely outstrip import growth by a significant margin. These forecasts strongly suggest higher future prices in this commodity. The Company’s fixed costs and likely rising average selling prices should benefit the SNMP’s trading fundamentals and, if and when relevant, its valuation in an acquisition.
– NaturalShrimp’s Disruptive Water Technology Creates Sustainable Competitive Advantage: For many years, outdoor shrimp farms have used “biofloc” technology to protect their shrimp from disease; biofloc essentially promotes the growth of “good” bacteria and other microorganisms that occupy niche ecosystems (such as the shrimps’ digestive track), thus preventing disease-causing organisms from infecting the animals when they try to occupy that same niche ecosystem. However, biofloc does not work well in high-density grow-out environments such as those required by indoor shrimp aquaculture. The Company does not use biofloc, however, and instead uses a new, patent-pending technology based on electrical current to clean its tanks. This new system suppresses the populations of Vibrio and other disease-causing organisms to nearly zero, making biofloc or other such techniques simply unnecessary. Additionally, the Company’s technology causes ammonia (NH3) to break down into harmless nitrogen and hydrogen gas, thus eliminating one of the historically most difficult problems in shrimp aquaculture. This superior system will allow the Company to finally begin producing on a commercial scale this year, and will provide it with a very significant technological competitive advantage for the foreseeable future.
– Modular Systems Allow Company to Create Production Near Centers of Consumer Demand: One of the most pronounced competitive advantages that the Company has over ocean-caught shrimp is location: The Company can build near large consumer markets not bordering shrimp-producing waters (e.g. Las Vegas). This allows the Company to provide a gourmet-quality product that has never been frozen, which for these markets is something that current high-end ocean shrimp providers simply can’t match. Because of this, we believe that the Company will regularly sell its entire stock at a price well above the “quoted” price for shrimp of the size they produce, greatly enhancing the Company’s profitability.
– The Company’s Growth and Concomitant Funding Plans are Sound and Doable: NaturalShrimp plans to first serve the San Antonio market near its initial grow-out facility, and then almost immediately attack the Las Vegas and New York markets, where the wholesale price of the Company’s shrimp is some 40% higher ($14/pound instead of $10/pound). Assuming that the Company can secure a large amount of debt financing to fund its buildout plan, which management believes it can, then its strategy should work very well. Timely and adequate funding is a risk, as NaturalShrimp will not be able to expand into commercial production volumes without the necessary capital. But that said, NaturalShrimp has the product, the market, the team, and the patent-pending technology to win. We therefore re-initiate coverage of NaturalShrimp, Inc. with a Strong Speculative Buy and a 12 to 24-month price target of $2.16 per share.
Content is for information purposes and not a solicitation to buy or sell any securities mentioned.
Market Equities Research Group
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Source: EIN Presswire