Martek: A Brainteaser for Investors

Analysts say the slow rollout of new foods containing the company's main product, a fatty-acid oil that aids child development, has hurt shares

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Docosahexaenoic acid is a formidable-looking term, but under its friendlier acronym, DHA, Martek Biosciences (MATK) sells the omega-3 fatty acid to infant-formula producers. But it seems the domestic industry leader in DHA needs to nurse itself back to health. The stock excelled in the second half of 2002 and during 2003, eventually topping $70 per share, but later, it stumbled badly. Early this September, it hit a multiyear low of $20.57—and it might still be overvalued.

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