Apr 13, 2020 (Baystreet.ca via COMTEX) -- Shares of Neptune Wellness Solutions Inc /zigman2/quotes/203840062/delayed CA:NEPT -8.86% /zigman2/quotes/207537677/composite NEPT -8.82% skyrocketed more than 30% on Monday. The jump comes just days after the company announced the appointment of a new CFO, Dr. Toni Rinow, who previously worked in private healthcare organizations. The Wellness company also recently got the okay from the U.S. and Canada to sell plant-based hand sanitizer.
Cannabis is a growing part of the company's business but one of the advantages that Neptune has over a typical pot stock is that it has more diversification. In its most recent quarterly results, for the period ending Dec. 31, 2019, the bulk of its sales - 69% -- came from nutraceutical sales.
Cannabis revenue of $2.8 million was one-third of the company's sales. In the prior-year period, Neptune had no cannabis revenue contributing to its top line.
The extraction company can play a significant role in the cannabis 2.0 market in Canada but it can also fall back on its other nutritional products and supplements for growth as well.
The stock is a safer bet than most pot stocks and that's why it's not a surprise that while Neptune's shares are down 45% over the past year, they're still nowhere near the 70% decline that the Horizons Marijuana Life Sciences ETF /zigman2/quotes/208856346/delayed CA:HMMJ -4.94% has gone on during that time.
Neptune's stock currently trades right around its book value and at a forward price-to-earnings multiple of 13. Its recent surge in price has put the stock back to around the level it was in early March before the markets crashed as a result of the coronavirus pandemic.
For cannabis investors, Neptune's a safer alternative to invest in and could be a solid pick up today.