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CSS - Clean Seas Seafood

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Re: CSS - Clean Seas Tuna

CSS said:
Spawning commenced on 14 January 2010 and intermittent spawning events occurred over the next month. At present, the broodstock are showing positive courting behaviour and may recommence spawning in March as in previous years.
Click to expand...

If you add 38 days from 14 January 2010, then you get to Sunday, 21 February 2010. An announcement about the dying fingerlings could conceivably have been made in mid-February or earlier this week at the very latest.

IMHO, CSS has been treating its shareholders like mushrooms ever since the SPP was completed.

Which reminds me, Paterson Securities underwrote the last SPP and I remember seeing a research note which put a target of $1.33/share from Paterson Securities. I'm sure there will be a few analysts at that firm a little hot under the collar at the moment.
 
Re: CSS - Clean Seas Tuna

Ouch, this is something i was looking at getting into the other day to broaden my portfolio..

time to keep watching hopefully they will learn from not letting the investors know whats going on and come good again soon. i then might jump on in
 
Re: CSS - Clean Seas Tuna


Thats a good point with the dates. The trading halt should have been before Monday morning, that would have prevented some of the insiders getting out before the bad news.

Concerning the other comments that the next possible spawning is good news, Investors know they can spawn SBT, kepping them alive till market size is the current clallenge.
 
Re: CSS - Clean Seas Tuna


Well what else do you expect from Paterson’s Securities? They are paid a truck load of cash, or maybe in this case, a truck load of rotting dead fish to say what the client wants.

Maybe it’s about time, that with some obvious skills lacking in due-diligence stockholders and others take the blow-torch to PS? How about asking them to buy the, what now seems to be, worthless stock off you for what you paid? I am sure they were part of the 97m share exodus today.

As for their valuation, if I recall it was only a month or so ago they gave them the BIG thumbs up and a valuation so far above their current (at the time) SP that either the janitor was allowed to put out a report or PS was complacent in concealing what can only amount to fraudulent accounts – given that it has only been a few months since they pumped the market with good figures, numbers and stock levels (fish), or their level of incompetence knows no bounds and they should be held liable for not, well simply, doing a proper job.


As someone said, you appear to have some good linguistic skills. However, putting them to one side I think I will wait to join the bandwagon on this one about them all being dead.

Maybe, just maybe I am being a little optimistic – that’s a first for me, I just don’t think that anyone could possible be so naive as to think that if they had died that they could get away without informing the market. Yep, ASIC is a joke, yet they wouldn’t let this little beauty get away if it’s true – pardon the pun.

So, yes, past tense, yet it doesn’t say they are, or have. Which, also makes your assumption for the 'detailed review' just a little putting the cart before the horse.

Unless, of course you know something???

However, at 9 cents and with a $1+ valuation, Christ, sign me up I’ll take a few thousand $’s, cant lose on that one can I? ha!
 
Re: CSS - Clean Seas Tuna

CSS Investors,

A very disappointing day for everybody Hagen, CSS Workforce, Investors and anybody else associated with the company.
There are a multitude of reasons why CSS has come to this and it is a bitter irony that someone, someday, will turn the progation of Bluefin Tuna into a viable and very profitile business, unfortnately, I don't believe it will be CSS.
I guess, in hindsight, I should have considered the fact that it has taken Kinki 20 years to propogate and produce aquaculture bred NBT. They have only achieved 1407 fish being moved in to sea pens after starting with 860,000 fertilzed eggs. There are still many years of scientific testing before anybody can dream of commercial quantities of BFT, but CSS have been a pioneer in starting the ball rolling.

Where to from here for remaining investors, well, there is possibly some intrinsic value in infrastructure/stock and possibly IP but this is rapidly being depleted as the company continues to bleed funds. Major investors will sell out ( many did today I suspect ) and leave the remaining stock to speculators ( hedge fund types ) hoping for a distressed asset sale and potential stag profit.
The risk for those still holding is that you stand to lose everthing. CSS will most likely cease trading without warning.

A very sad outcome for a company I once had great faith and belief in through my interest in aquaculture and , in particular, the sashimi tuna industry.
 
Re: CSS - Clean Seas Tuna


I forgot to add that this is my opinion only and that I am not a financial advisor. My comments are not based on any particular factual information just my own prediction after many years of investing experience . DYOR.
 
Re: CSS - Clean Seas Tuna


Hi Oracle, Truly a sad outcome, but i am slightly unsure, do you know if all the fingerlings did die? the wording is pretty vauge in the announcement. Do you really think it is the end of CSS? Would selling of the KF and Mulaway stocks generate enough cash to keep the SBT division going. It seems most of their losses since the beginning have been in conventional aquaculture and not the SBT breeding. Unfortunatly i doubt an asset sale will produce much cash as most assets are in the Hatchery and can not be moved and would have very few buyers as a whole. I hope they can survive and pull off closing the SBT life cycle. If the close what will happen to the confidentiality agreements with the staff. (unenfforcable?)
 
Re: CSS - Clean Seas Tuna

If they are using 7 Million a quarter and they had 17Mill at the end of January, that means they will run out of cash in the 4 quarter 2010.

What do they have to generate money - Anyone care to answer?

Just looking at their financials.

They have 100 Mill in assets with a book value of .24c which makes them heavily undervalued.

If they can make some progress with the SBT spawning and rearing and can borrow more money and not tap the market then who knows long term. Can you put up with the paper loss?

I read this and think yeah they died but they are moving forward


I think we got screwed when the they made the announcement of the 25c share offer. It should have been 40c and then it would of given us more time.
I think that was the biggest mistake they made. I don't know what they were thinking but then again the sp would of fallen from there after the Rabo bank support fell through.

If they are liquidated how much goes to the shareholders? - 10 - 15c ? so is it really worth holding? - Here comes Nick Bolton. God help us!

The all important question is what will the share price do. Now more speculators and scalpers are onto it I see major resistance at 10c. This is no Karoon gas story, this is an AED/CNP/ABS type story. People have lost money and they are hurting.

I for one take full responsbility. I invested because I like Tuna and saw the potential in this company and saw peoples faith in this thread. I can't blame the company. They are trying to survive. They can't just say yeah we stuffed up and we are incompetent otherwise they will be sued and then they will become bankrupt.

I saw the warnings signs and had a chance to get out with a profit after the 25c support held and then the January announcement. I did an all or nothing trade and it became nothing. No stop loss even though it was so risky. I predicted support will break and still held it. There is no hope just reality and that is a risky company and a large loss.

Congratulations to TGE Oracle for posting with honesty and an what turned out to be a stance of wisdom.

We should all learn from this one. Take your opporutunites when you can don't live with pain and unrealistic expectations because your health will suffer. Mine already has.

Lets hope the tax man can give a little back this year.
 
Re: CSS - Clean Seas Tuna


My opinion is its not entirely over yet. Its a very optimistic view but I think a major bonus is Ellice-Flint joining CSS. There is probably noone better to have currently with the financial problems they are soon to face. Im willing to lose the leftover $1.5k from my purchase of the $5k package. It was always an investment where I was going to see out whether they are successful or not. Hopefully in next 4 quarters something huge develops and plans succeed.
 
Re: CSS - Clean Seas Tuna


The market has assumed from the language used in the report that the fish have died. I imagine that if some of the fish had survived, then they would have been a lot clearer about that in the report released today. But they didn't confirm for sure either way but the language used will lead most investors/traders to speculate that the fish died.
 
Re: CSS - Clean Seas Tuna

The fact that there is some uncertainty around whether or not the fish survived is inexcusable. Bad enough that this news was delayed and advised in the accounts rather than a separate notice to the market when it happened, but then to word it in such a way that it creates speculation is worse still.

Perhaps some of you saw the article below on Business Spectator last night ..... At least they haven't given up and will give it another go. If I was holding this stock, I wouldn't sell now. There might be better opportunities to exit in the next couple of weeks. Of course, DYOR. I will continue to watch them and see if Hagen Stehr's middle name might be Lazarus.

From Business Spectator:

"Clean Seas Tuna Ltd loss worsened to $14.2 million for the half-year ended December 31, 2009 compared to $6.7 million previously, on revenue up 48% to $19.3 million.

NTA backing per share is down 24% to 24c.

The company said the worse than expected result has largely arisen as a consequence of the difficulties of the yellowtail kingfish business. The board has made the decision to devote much greater resources to the company's core business, tuna.

Spawning for southern bluefish tuna commenced on January 14 and intermittent spawning events occurred over February. At present the broodstock are showing positive courting behaviour and may recommence spawning in March. However the program has raised new challenges with the oldest fingerlings surviving only to 38 days, when they were actively feeding on live feed. The company purchased tuna quota and is growing out some 70 tonnes of premium quality SBT in pelletised feeding trials.

The company continues its relationship with Kinki University and its research partners. The company has reduced costs in its kingfish business, with price increases implemented in Europe, the US and Australia, bringing to an end loss making sales. On the SBT business, directors are confident lessons learnt from the current spawning will lead to substantial progress in the second half 2010."
 
Re: CSS - Clean Seas Tuna

DEAD DEAD DEAD.....ALL DEAD!


Clean Seas Tuna share price dives over breeding problems Nigel Austin From:

AdelaideNow February 26, 2010 5:56PM

THE share price of South Australia's Clean Seas Tuna has plummeted by 58 per cent as investors react to a major setback in its tuna breeding program, heavy losses in its kingfish division and a worse-than-expected half-year result.
Clean Seas reported a $14.16 million net loss for the half-year ended December 31, down 112 per cent on the $6.7 million loss booked in the previous corresponding period.

The result sent its share price down to 9.1c, with 97.8 million shares almost a quarter of those on issue, traded by investors.

The result included a 48 per cent lift in revenue to $19.26 million for the half year, while the net tangible asset backing fell by 24 per cent to 24c a share.

Managing director Clifford Ashby said the half-year loss had arisen largely due to difficulties in its yellowtail kingfish business.

"The company is taking positive steps to scale back those operations to become a profitable and long-term sustainable business," he said.

Start of sidebar. Skip to end of sidebar.
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A restructure of the kingfish business was pending and the board had made a decision to devote much greater resources to the company's core business, tuna.

Mr Ashby said the 24 per cent cutback in Australia's southern bluefin tuna quota was a timely reminder of the role that Clean Seas would play in helping to protect the natural resource by providing consumers with a sustainable alternative.

Mr Ashby said the tuna breeding program had achieved new breakthroughs including the early start of spawning on January 14 and the successful feeding of live feed to the fingerlings for the first time.

Scientists and vets were continuing investigations into the mortality of fingerlings, which did not survive past 38 days, and they were confident that if the broodstock spawn in March, as they are indicating, the resulting fingerlings will survive.

If they spawn in the first half of March, it would be in time to put fingerlings into the sea before colder weather arrives, but if they spawn in late March or April, the company has the option of putting them into on-land fish tanks at its Arno Bay hatchery before transferring them to the sea next summer.

Clean Seas has also bought 70 tonnes of tuna quota and is growing out the fish in a trial program to test weaning and juvenile pelletised feeds before selling them next year.

"The start of tuna spawning was brought forward by two months which is considered a major advancement by the science community around the world," Mr Ashby said.

"But it was a more intermittent spawning compared to last year and we didn't get the numbers we'd hoped for research and development with the fingerlings surviving for up to 38 days."

Mr Ashby said the kingfish operation suffered a $14.79 million loss in the past six months and the company was looking at every opportunity to reduce costs.
 
Re: CSS - Clean Seas Tuna

Qjumpa said:
DEAD DEAD DEAD.....ALL DEAD!
Click to expand...

You may be right! Yet this article says nothing (proof) about them being dead, it is simply assuming they are.

As it stands, and maybe something has changed between going to sleep last night and waking this morning, yet the company - in whatever silly way it has, has not confirmed or denied they are "ALL" dead.

I suspect they are, however just because you read it in the paper doesnt make it so.

Scientists and vets were continuing investigations into the mortality of fingerlings, which did not survive past 38 days, and they were confident that if the broodstock spawn in March, as they are indicating, the resulting fingerlings will survive.
Click to expand...

I have to admit that this one is news to me: what scientists and vets? From where? Who are they? Think there is a little creative writing in this article.

As the CSS document states:

The larval rearing staff are currently conducting a detailed review of the season to date and are working to further refine procedures and programmes before the next spawning
Click to expand...
.

And if we are to play the linguistics game, this only says they are "investigating" the mortality of those that did not survive past 38 days. To me, this doesn’t say they all died.

Once again, I think there might be a lot of truth, to what is being inferred at this stage that they are all dead. However, I would like the company to come clean and tell the stockholders if they are dead, or that some died - and to me I don’t mean 1 or 2, I mean if 40% are dead then we should know about it.

As for me, I brought in at 22cents, so I might as well keep them and see if I get it back, or a little more than the 9cents on offer, or just lose the lot. So, I think these will go into the 10 year stock rebound pile, ha!

If all of this is true - they are dead, and based on some rather dodgy math of mine they have been dead for a few weeks, so we as shareholders as well as others should ensure that ASIC receives as much indignant mail as possible to ensure that this does not go unchecked, that is not keeping the market informed.

I would also suggest that maybe Paterson’s Securities doesn’t get away with, well who knows what to call it, yet I have a few words in mind, for example: incompetence; bewildering ineptitude; dodgy accounting; fictitious research; and the list goes on.
 
Re: CSS - Clean Seas Tuna


I too brought in at .22, i am down over 20K and i'm not rich enough to take a hit like this... turns out i'm just an old fool.

Anyway, this is what a friend of mine said - she said

I'm undecided on their long term prospects apart from a bounce trade but I had a chat with Clifford Ashby CEO this evening (he doesn't know me from Adam but was just returning a shareholder query/sledging). Most interesting, apart from the strong cash position evident from the report, is that the company is undertaking forensic testing on the fingerlings which I am told died suddenly and recently.

As it was explained to me, the current tanks are flushed with fresh sea water every day (opposed to the new tanks which circulate conditioned sea water), so the likely cause of death was disease or contaminant which entered with daily sea water (thus the sudden death) - the company's breeding facilities have since been sterilised. This is a double edged sword. On one hand it could be easy to fix a contamination problem in the breeding stage, especially in their new (circulated, can't remember the term he used) facilities. But A) surely this was a risk for which they were prepared? possibly not well enough? and B)ultimately the little buggers need to man up for the sea cages or there's little point to the spawning in the first place.

CEO said forensic testing will confirm the cause and this may or may not be announced to the market depending on it's "material affect on the business".

There was lots more discussion about cash burn (well controlled now that business model has/is being refined), future capital raising (none foreseen, hmmm), the lack of clarity in the announcement (ie. we were promised sea cages but these weren't even mentioned - yes they're sorry about that), the excellent state of brood stock both offshore and inland tanks, progress of farmed offshore fish (excellent) and lots about the scope and speed of the tuna market opening up - but too much to put down now in any detail. Actually, much of what was discussed appears in the following article which makes a good start in deciphering today's debacle



Opinions please??
 
Re: CSS - Clean Seas Tuna


Hi Basilica,

As far as I am aware all of the fingerlings suffered a mortality event.

I am afraid that, in all likelyhood, CSS will cease trading. I can't invisage any scenario that may prevent this outcome. Even spawning success in March won't prevent their demise in my view.
The reasons I think they will fail are the following ( not necessrily in order ):

1. SBT - They are able to propogate SBT fingerlings but only very small quantities and the mortality rate is extremely high. They are many years away from commercial production, I would guess 5-10years at best.

2. YTK - After 5 years they have been unable to develop a profitible YTK business. The growth rates and FCR's are appalling and they will never achieve profitility at this rate.

3. Bank Support - No bank, in my view , will loan them any money. It is far too high risk for even the most adventurous banks.

4. Institutional and Foundation Support - Without banks the next line defence is the Insto's. With this latest outcome I believe they will sell out of CSS and will not support any further cap raisings. Even foundation investors like Simplot will desert CSS.

5. Retail Investors - Badly burnt by lack of progress and a plummeting share price even the most stoic investors will be reluctant to provide more funds.


I am sorry I can't paint a more optimistic view for remaining holders but I can only tell it as I see it.
I am no longer invested in CSS so my views are not that of a holder but I can say that I will definately not be buying any CSS shares no matter what the price.

History tells us that very few companies in this position survive. Even the last hope of a White Knight is unlikely because I can't see how they would benefit from purchasing CSS.


Please DYOR and carefully consider all the facts.
 
Re: CSS - Clean Seas Tuna


Hi Qjumpa, You bought in at 22c so you are a lot better off than investors who bought at $1.70. Not such an old fool

I am surprised they are using tanks that are flushed daily from the sea for such important stock. They newer system is called Recirculating (your friend was close) Basically a two stage filter, mechanical first to remove solid particals then biological to convert harmfull substances into safer ones. Nitrite into Nitrate is one conversion and sterilising like UV or ozone. The surprising thing is at less than 32 days old the tanks are quite small and not that dear.

But mass mortalities do happen in Aquaculture and when it happens it is much better to happen to fingerlings rather then market sise fish.


The annoying thing to me is the cash burn on the YTK side. They seemed to have slowed in their growth rate and had higher mortalities than expected. The remaining cash would go a long way if used in the hatchery. The 160 staff is a big overhead and presumable mostly for the YTK side of things. If YTK division can break even quickly it would be a big relief.

I think the end is far from certain but Aquaculture is a tough business and even Tassal was reborn from the hands of the reciever
 
Re: CSS - Clean Seas Tuna


I am not so certain that CSS will cease trading.
In your order.

1. Yes it will take a long time to commercial SBT. Most scientists in the industry knew this. Hagens Hype was not helpfull and created unrelistic investor expectations.

2. Totally agree about the YTK. a disaster from the beginning.

3. Bank support will be difficult but Hagen is cashed up especcially after selling lots of assets to CSS and should chip in if only to save face in his community.

4. I agree they will sell if they have not sold already and will not buy back in.

5. retail investors will be reluctant and the ones that are already burnt and left will not try again, But others will for the right price. 1/2 or 1/3 or 1/4 or 1/10 asset value.

"History tells us that very few companies in this position survive"

History tells us that public companies that have cash in the bank and do not have debt do survive. You may need to clarify your line.

I have made no secret that i may be a shareholder some time but are waiting for the right time to buy in. That time is closer now than it was at $1.70. But now is just a little to risky for me.
 
Re: CSS - Clean Seas Tuna

A couple questions i need to be answered by others.

1 Has the 6.5 million $ recirculating system been paid for yet or does that need to come out of the cash in bank? I cant find the specifics.


2. What was the value of Hagens initial investment in CSS?
 
Re: CSS - Clean Seas Tuna

Basilica said:
"History tells us that very few companies in this position survive"

History tells us that public companies that have cash in the bank and do not have debt do survive. You may need to clarify your line.
Click to expand...


Basilica,

What needs to be considered is that CSS will soon deplete this cash balance. They have a rapidly diminishing source of revenue from YTK , reading between the lines, this is dramatically falling. They have 160+ staff and broodstock SBT which require immense funds to keep operational. Judging by the cash burn rate in the results I suspect this cash burn rate is increasing exponentially and the CSS board won't let the company become insolvent.
Cash in the bank is meaningless if you have very little revenue and a substantial cost burden. The only way they will avert suspension from trading would be to conduct a significant Cap raising, this won't be supported by investors I don't believe, or Hagen. As the saying goes " you can't flog a dead horse"

There will be no pre-warning, ringing of bells, last call etc. you will just wake up one morning to see a notice on the ASX - CSS suspended from trading. That will be it , then it's over to the administrators to determine what's left for investors, if anything!
There will probably be some wild fluctuations , by day traders , in the next week / weeks but it will be a case of pass the parcel and don't get caught holding when it happens.


DYOR everybody.
 
Re: CSS - Clean Seas Tuna


What you say is true, Stopping the rate of cash burn is critical and difficult but possible. If CSS does not take on debt they will have time to complete the SBT life cycle. Share holder value will continue to decline with further Cap raising but that on its own will not close it down. Hagens cash position in CSS is possibly positive when all related party transaction are taken into account. He may offer support. so long as it is not in the form of a loan secured by assets is ok by me. Sell down the YTK stocks and flog of the cages hagen sold to CSS and the new feed barge and you could buy 5 years with only minor cap raising. Enough time to close the cycle and have a SBT hatchery selling fingerlings to others. This is just one of many possible downsizing plots.
 
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