Ann: N3RO Clinical Research Study - Initial Results-CLV.AX, page-13

There appear to b a # of ppl who invested in this co. that simply didnt understand the bus. nor what clinical trials r all abt.

In a bus. sense failure to meet the P3 primary end-pt means the new emulsion product cant make the medical claims on its label. i.e the ability to mkt the product is zero. The best theyll b able to do is state 'x' has DHA in it. Ive mentioned this b4 but on balance I didnt think the trials were 'worth-the-risk' as the end product is nothing revolutionary. In terms of monetary loss; jst over $1M. Much less than the FFI Soy plant fk up many yrs ago.

$0.30-$0.35 is abt right in terms of SP. On the bright-side sales into the asian region are increasing and vols generally r picking up. This is in-line with report of new 'industries' springing up where online shoppers 4 hire film themselves buying AU DHA infant milk off the shelves and then package up for shipment to china. Such is the desperation to get trusted product. This type of consumer behaviour bodes well for CLV.

The challenge now is where the co. goes to source growth. In my view it needs to change tack and acquire businesses, including distribution. It also needs to bring down costs so that it can compete in the US (martek) as $A/$USD pair has come down signif. Thus, it is cheaper for US co. to source DHA from Au and asia generally.

Not quite a buy yet.