# SES - SECOS Group



## yogi-in-oz (15 May 2006)

Hi folks,

Saddled-up CNN for this week, in shares contest ... it has
been in decline, since the highs in 1997 ... just announced
a new capital-raising with free option, ahead of a new
IPO, spinning off some of their assets .....

..... off its lows today ..... 

Attached CNN chart says it all ..... !~!

happy trading

yogi


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## yogi-in-oz (15 May 2006)

*Re: CNN - Cardia Technologies*



Hi folks,

CNN ..... up 56+% today ..... hope some of
you got on board ..... 

happy days

  yogi


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## yogi-in-oz (21 May 2006)

*Re: CNN - Cardia Technologies*



Hi folks,

..... and CNN finished the week up 39% ... a good
performance in the face of a seriously negative
market, overall ..... 

happy days

  yogi


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## HRL (12 April 2007)

*Re: CNN - Cardia Technologies*

CNN popped up on my scan yesterday (about 6mths too late).  Impressive 12mth chart and excellent volume over past three days (1.7m/3.4m/8m+).  No doubt in anticipation of a uranium licence being granted very soon in Botswana. 

Since Sept06 CNN has risen from 2.5c to it's current high of 19c today...    Has some other diversified investments also and recently sold their interest in A-Cap Resources for $4.9m (a $4.3m profit!!).  

Anyone else watching these guys?  I guess if you were clever/lucky enough to have a decent chunk of change in since last year you would be kicking back in the Bahamas by now and not ready this!! :


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## Halba (12 April 2007)

*Re: CNN - Cardia Technologies*

I am in today. $850 worth. Reason: too speculative as if they don't get license you can lose 1/2 your capital.


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## Simo9 (10 April 2012)

*Re: CNN - Cardia Technologies*

Any thoughts on prospects for CNN? Seems like a good technology, new contract of $500k ...


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## System (22 April 2015)

On April 22nd, 2015, Cardio Bioplastics Limited (CNN) changed its name and ASX code to SECOS Group Ltd (SES).


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## Dona Ferentes (27 December 2019)

not much interest in SES. Probably for good reason, though directors are buying and it is a *GREEN *choice.

Ongoing Developments:
- _Several bioplastic resin qualification trials are progressing and are expected to lead to further orders as plastic converters move to switch production to bioplastics to supply customer demands. Some of these trials, if successful will include applications for major international brands; 
- SECOS is in discussion with a number of Australian brands who are signatories to the Australian Packaging Covenant and National Packaging Targets. These targets require companies to change any single use plastic packaging to either *100% reusable, recyclable or compostable packaging by 2025*. 
- The development of a new compostable cast film application is progressing well and will expand opportunities into the hygiene market such as diapers, pads and medical film and flow wrap applications; 
- Continued investment in R&D to develop new resin and film grades aimed at catering for emerging market demands for bioplastic applications; and 
- Investment in Courier bag production assets underway with trials for compostable courier bags progressing to final stage development.
_
Our local council distributes compostable bags for food waste. Great idea? They don't seem too strong and, besides, the habits of residents leaves a lot to be desired. Unless 100% get involved, its pointless.

There must be a number of competitors out there. Stiffer grade material is needed for the "Compostable Bin Liner and Compostable Carry Bag market, where machine speed is important to converters and mechanical properties that support bag loading is an important feature, for consumers and retailers alike."


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## Dona Ferentes (23 March 2020)

someone is either ambitious and positioning the company for the future, or hasn't looked out the window recently; Secos has gone to a Trading Halt to raise capital by way of a _*share placement*_.



> SECOS Group is focused on leveraging its expertise and positioning in its target markets of Films & Packaging and Waste Management Solutions. It has sales offices in Australia, Malaysia, China and USA and network of leading distribution across USA, Asia and Europe.


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## Dona Ferentes (9 July 2020)

Likely pop at open. Finally the possibility of scale (a slow build)

Highlights: 
- _Woolworths selects SECOS to supply two *certified compostable bin liners* into their stores - 8L Kitchen Caddy Bag and 36L Bin Liner.  
- Initial rollout will begin in July with 86 Eco Stores and a view to expand supply through the broader Woolworths retail network 
-The availability of SECOS’ compostable bags via Woolworths stores will give households participating in approved council food organic waste programs the option to dispose of the bags and food waste in their green waste bin 
- The acceptance by Woolworths together with a long list of government Councils requiring the use of SECOS’ compostable bag range further validates the Company’s reputation as a leader in sustainable and environmental products 
- Volumes will be subject to instore sales however current demand for compostable bags via retail chains suggest good sales growth for this market.  
- SECOS sees InStore products as a new market for its branded MyEcoBag and MyEcoPet line of products._


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## Dona Ferentes (9 July 2020)

baby wakes up






(_don't hold)_


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## Dona Ferentes (10 August 2020)

• SECOS secures a significant strategic supply contract with leading United States pet supply company, JC USA Inc a wholly owned subsidiary of Jewett-Cameron Trading Company Limited (NASDAQ Code: JCTCF). The contract is for the supply of compostable pet waste bags made from Cardia™ proprietary biopolymer resins. 
• The contract and initial orders support sales of circa $3m annually, with upside potential as Jewett-Cameron grows its market reach and consequent compostable pet waste bag sales.

_this seems to be the pattern, of getting initial orders.... whether it grows to being significant to SES remains to be seen.
- cost. Usually higher, then is a consumer decision to buy. Some will (inner city dog owners?)
- competition. I doubt this is uniquely proprietorial.  
- mandated. Will authorities specify that plastic not be used, leaving this as the choice




_


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## Dona Ferentes (8 September 2020)

kicking myself about not buying Secos when it came to my attention (late last year). 
The caution then: 
1. was it a unique proposition and was the moat sufficient?
2. most of the contracts gained were 'around the edges'; the occasional council, or niche player.
3. the cost per unit to end users = consumers would introduce '_sticker shock_'. Uptake would languish
4. and despite the best interests of a concerned community, these _eco initiatives _have come and gone before (unbleached bog rolls; hemp bags?)

Since the WOW contract in July, others have been logged; with a large US pet company signing on to give a further boost. And it isn't only bags; biofilm as part of a composite (nappies, healthcare, PPE) is actually 50% of their market. Global production is split 55% for biodegradable / compostable products versus 45% for bio-based non-biodegradable products.

Again, the Europeans are setting the pace with mandated targets for plastics control (and related carbon emissions). Regulations will only increase:


> While the major displacement of oil demand in the transport sector has yet to materialize as EV penetration has been slower than major projections estimated, the *crusade against plastics* has begun and will only intensify in the coming years. This would mean more initiatives for banning single-use plastics and more regulation in place for plastics recycling. Without regulation, the crusade will fail. According to Carbon Tracker, however, it will win, not least because of problems inherent in the plastics industry.





> ..._Plastics impose a massive untaxed externality upon society which this report estimates is about $1,000 per tonne ($350bn a year) from carbon dioxide, health costs, collection costs, and ocean pollution,_ the report authors wrote, adding that these can be mitigated through recycling, replacing with alternative materials, and improving the design and regulation.



https://carbontracker.org/oil-industry-betting-future-on-shaky-plastics-as-world-battles-waste/

I don't think Secos is the only solution, but the tailwinds are there.
Market cap now $80million; management and board have 28%. and margins are running at 80%


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## Dona Ferentes (8 September 2020)

and now, a Trading Halt, for a Capital Raising.

_la de dah de dah_


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## mangojoe (8 September 2020)

The ASX website shows a 25¢ bid over a 19¢ offer. Is that bogus information/someone having fun?


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## Austwide (9 September 2020)

Happens on lots of stocks everyday, buyer wants to buy and knows he will get in first at a lower than his bid price. Check out some stocks pre open and you will see.


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## Dona Ferentes (9 September 2020)

This one's in a trading halt. Getting in early.


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## Beaches (9 September 2020)

mangojoe said:


> The ASX website shows a 25¢ bid over a 19¢ offer. Is that bogus information/someone having fun?




Any time a stock is in a trading halt it is the same as the Preopen. If you look at the post in the link below it should answer your query.

https://www.aussiestockforums.com/posts/1081890/


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## mangojoe (10 September 2020)

From https://themarketherald.com.au/seco...m-to-support-production-expansion-2020-09-09/

_Pleasingly, the placement was oversubscribed and received strong support from leading institutions as well as existing shareholders and institutional investors.

_​I'm a SES holder through Interactive Brokers since a long time but have not received any message or way how I could have signed for additional shares. Shouldn't IB have given me such option?


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## Dona Ferentes (12 November 2020)

_• December quarter sales expected to be in the range between $7.3 to $7.8 million (subject to final shipping schedules) compared to September quarter sales of $5.8 million, an increase of 26% over previous quarter and 35% over the December quarter last year.  _
_• SECOS successfully wins tender contract for existing customer, Penrith City Council valued at over $3 million over the next three years plus additional contract extensions totaling $2 million over a two-year period.  
• Lucky Dog compostable pet bag orders commenced delivery in the current quarter as announced on 10th August 2020. Jewett-Cameron Corporation (USA) expected to exceed the minimum contracted amount of $3.0 million per annum. 
• SECOS has committed to the purchase and installation of an additional compostable resin manufacturing line in its Malaysian plant in response to growing resin sales into the Americas and Australasia. 
• SECOS develops new compostable bioresin grade which is more suited to replace conventional plastic carry bags which are commonly sold or given away  by supermarkets. _
_• Initial sales of newly developed compostable Cast-Film Magazine Wrap secured with formulation work continuing to expand Cast-Film applications to compostable hygiene film commonly used for diaper and FemCare applications  _


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## peter2 (13 November 2020)

*SES* appeared in my scans recently and I liked what I read in their latest business update. 

The price chart shows a huge spike when Woolworths decided to use some of their compostable bags. Since then *SES* has continued to add contracts both here (Aust) and abroad (US). They're still a minnow, but seem to be growing the business. It's a business that should attract the ESG followers. 

The chart shows a big resistance level at 0.20. It may take more time and additional contracts to get past that level. I've taken a small (spec) position as I not entirely comfortable with the RR at this price. I may add at a lower price if there's evidence of demand at the lower prices. 







If their chemistry is unique and well patented then I would anticipate that SES is a takeover target for a large packaging company.


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## Dona Ferentes (27 January 2021)

peter2 said:


> *SES* appeared in my scans recently and I liked what I read in their latest business update.
> The price chart shows a huge spike when Woolworths decided to use some of their compostable bags. Since then *SES* has continued to add contracts both here (Aust) and abroad (US). They're still a minnow, but seem to be growing the business. It's a business that should attract the ESG followers.
> The chart shows a big resistance level at 0.20.



and a good, a very interesting quarterly, and 30c easily breached.

*Financial Highlights *
• _December quarterly sales of $7.9m were up by 50.1% vs the corresponding December 2019 quarter, and increased 34.2% vs the preceding September 2020 quarter, 
• Biopolymer sales were up 71.1% from the September 2020 quarter and now represent over 73.3% of total sales, 
• Driven by record biopolymer sales, SECOS expects to report a *maiden profit for the first half for FY21,* 
• SECOS reported a net operating cash outflow of $1.4 million in December 2020 quarter after investing over $2.6 million in new working capital to support increasing sales volumes, 
• The Balance Sheet remains strong with $14.3 million in cash and no debt, 
• Capex investment continues with additional extrusion and bagging lines in China and Malaysia to support increased demand_.


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## Dona Ferentes (22 February 2021)

• Positive EBITDA $576K and NPAT $66K 
• Revenue up 30.5% vs PCP 
• Biopolymer sales up 129% vs PCP 
• Gross profit margin 18.2% vs 14.2% PCP 
• Strong balance sheet: $14.3m cash with no debt



> • Vertical integration is a strength with expertise across the value chain from *Resin -> Film -> Bags *
> • Increasing importance of Compostable business which now comprises 73% of overall business
> • Strong IP and technical know-how in biopolymer resin formulation and film production
> • Launch of MyEcoBag™and MyEcoWorld™portals targeting own brand sales and integrated margins
> • Continued focus on supplying retailers with their own branded products is accelerating growth in key retail segments


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## PetEarwig (2 May 2021)

I'm entering Secos Group (SES) as my May monthly comp pick. I'm basing this on the hopes of a reversal in the share price. I'm hoping price reverses off support at the 200 SMA. If not, my chances are toast.


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## peter2 (15 June 2021)

*SES*, one of my longer term holds (it hasn't been easy to hold) finally sees some positive news. Woolworths increases their distribution of Secos' range of compostable bin liners.


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## Dona Ferentes (27 August 2021)

Material Improvement in FY21 Results 

*Highlights*: 
• SECOS expects to report a net profit of $2.6m (unaudited) for the year ended 30 June 2021, significantly up from the net loss of $1.2m in the prior comparative period. 
• The net profit includes $2.07m of deferred tax assets recognised as the Company has started to utilise tax losses carried forward but previously not booked.


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## peter2 (27 November 2021)

Selecting *SES* as my Dec21 monthly pick. *SES* makes biodegradable packaging and is slowly gaining more substantial contracts as other companies try to comply with their ESG obligations. 

*SES* is in a long term up trend that I think will continue. Unfortunately, it's unlikely to gain +50% in a month but +20% is quite possible if it continues to win more contracts. I'm waiting for a BO>0.32 for a possible entry.


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## frugal.rock (21 December 2021)

Woof. 😂


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## Dona Ferentes (11 November 2022)

_finally a bit of a lift_

_Coles Group to launch SECOS MyEcoBag in 770 Retail Stores _

Highlights  
• Coles Group (ASX: COL) to launch SECOS’ MyEcoBagTM compostable bag products in 770 retail stores across Australia. 
• The selection by Coles follows a recent range review involving SECOS’ compostable products and is on the back of significant sales growth YoY for MyEcoBag™ in Woolworths stores.   
• For Coles, SECOS will launch a new shelf-ready presentation pack of the well-received 36L pack and a new 27L pack. Both packs are ideal for kitchen food & garden waste diversion to green bins FOGO programs, providing a fully compostable solution.   
• Coles has added the two MyEcoBagTM SKUs on a non-trail basis, which will be distributed nationally. The ongoing supply of the two MyEcoBagTM SKUs will be subject to meeting sales projections as part of the annual range review. 
• The significant growth in MyEcoBag™ sales in Woolworths and now Coles will take the MyEcoTM branded products to over 2000 retail stores in Australia.  This store footprint plus our Australian-wide distribution network, which supplies a select range of independents stores gives SECOS a significant retail reach.


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## peter2 (11 November 2022)

I've been keen on the potential for *SES'*s biodegradable Eco bags. Was quite optimistic when they got them into Woolies over a year ago. Since then price has dropped off the proverbial cliff and my interest in *SES* disappeared.

Reappeared in my radar recently but I couldn't get keen due to the price down trend. I intuit that there's something not "right" within Secos. It has to be management. The Woolies contract should have been a company accelerator but it stalled. Now that Coles has them in store *SES* gets another chance to progress it's business. I'm still happily on the sidelines.


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## divs4ever (11 November 2022)

peter2 said:


> I've been an admirer of potential for *SES'*s biodegradable Eco bags. Was quite optimistic when they got them into Woolies over one year ago. Since then price has dropped off the proverbial cliff and my interest in *SES* disappeared.
> 
> Reappeared in my radar recently but I couldn't get keen due to the price down trend. I intuit that there's something not "right" within Secos. It has to be management. The Woolies contract should have been a company accelerator but it stalled. Now that Coles has them in store *SES* gets another chance to progress it's business. I'm still happily on the sidelines.



 ( disclaimer . i hold WOW  and COL )

 in my experience  a relationship  with WOW is NOT a positive thing  , the small company in the relationship normally suffers  ( i could list several  , but Gage Road  and HIL  should useful examples 

 however  now SES  has  a contract with COL as well  SES is less exposed to 'key customer  risk ' 

 there is a ( very ) small chance  that i buy into this  within the next two years  , i would rather sit and watch ( and see if rising costs  become a problem )


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