AAQ - AAQ Holdings

[Green08]

Re: AAQ - Australis Aquaculture

I have watched this for a while. How do you transport finglerlings by plane effectively and economically with fuel prices? Keep the stock 'fresh' by not over interbreeding? I'm sure they suffer from altitude compression sickness (ever seen fish chewing gum? and the RSPCA wouldn't me too impressed.) THE USA who has the money to buy quality Barramundi on a large scale, these people can't even (on a % basis) pay their Creidt card off. Do they even know what it is. Last time I was there they told me I had to try an Australian Delicacy on Open 'flowered' fried onion drown in mayo. Well i took one look it and said I have never seen one of those in Australia in downtown Sydney or Bathers - maybe some delicacy somewhere else. I love the hype which may fizz out. I do and would support any fully owned Barramundi project in Australia to support Australians.

 

[grace]

Re: AAQ - Australis Aquaculture

Well, what do you know, The Speculator has added Australis to his portfolio with quite a write up in yesterdays column. (I hold)

I’ll stick to bottom fishing among the all but unrecognized listed companies and this week I believe I’ve hooked a tasty catch.

Fish farmer unreasonably battered

Barramundi fish farmer Australis Aquaculture (AAQ.AX


AUSTRALIS AQUA31 July,200831/07/2008 13:51 Sydney, Australia.
Price Change % Change
0.265 +0.010 +3.920%

Company overview
Real-time quote
AAQ.AX , 0.265, +0.010, +3.920%) is set to deliver a maiden profit in 2008-09, four years after listing to develop fish farms in the USA and Vietnam. Last week, the company delivered an up-beat investor presentation in Sydney and rose initially to 30c, before tumbling back to close at 26c on a week’s turnover of 488,000 shares after the National Bank’s shock provisions sent the market into turmoil. At the week’s closing price the company’s 88.75 million shares carry a market capitalisation of $23 million.

Australis has traded down from a 52-week high of 66c to as low as 24c in recent weeks. On fundamentals alone, the stock should be poised for significant recovery over the coming year.

As an unlisted company before 2004, its original backers had a decade of mixed results from experimenting with fish farming in Western Australia. The turnaround began with the 2004 float to acquire America’s largest indoor fish-producing facility at Turner Falls, 90 minutes west of Boston.

The initial plant purchase and an upgrade cost $4.4 million and delivered a target capacity of 700 tonnes a year. The plant was modified according to company-held patents to replicate the habitat of barramundi, a species then almost unknown to the American palate.

Fingerlings were flown in from three Australian hatcheries and by mid-2006 it had a growing inventory estimated at 140 tonnes totalling 900,000 fish and growing at the rate of 45 tonnes/month. (It takes 9 months to grow the fingerlings weighing 3gm to a fish with a harvest weight of 750-800gms.)

To develop a niche in America’s $50 billion/year seafood market, initial production was directed through up-market restaurants, followed by 400 supermarkets and trials in chain restaurants.

A cute marketing coup was scored at the White House in mid-2006 when President Bush hosted a dinner for visiting Australian Prime Minister John Howard. The main course was Australis’ barramundi.

A further plant expansion costing around $2.5 million to lift annual capacity to 1000 tonnes is approaching completion, albeit at a slower rate than expected a year ago. That has no doubt led to some smaller investors shedding stock.

Eclipsing that development, however, is the move begun a year ago to open a barramundi hatchery, nursery and grow-out facility in Vietnam with an ultimate capacity to produce 10,000 tonnes of fish a year. In June, 2008, the company was granted licences to develop such a facility on a 205-hectare site in central Vietnam.

Australis chairman Ian Mitton has predicted to shareholders that the new development when completed could add $US50 million a year to revenue. (Mitton, joined Australis as non-executive chairman in April, 2008, having previously been the founding managing-director of salmon farmer Tassel Ltd.)

Meanwhile, full year revenue for 2007-08 is expected to be around $5 million, rising on the company’s projection to between $US14 million and $US20 million in 2008-09. (The last quarter of the latest year saw revenue running at an annual rate of $US8 million).

On revenue projections for the current year, the company should deliver a maiden profit of between $1.3 to $2.3 million. At the higher rate, that equates to earnings of just 2.6c a share putting the stock on a multiple of ten times projected earnings.

While I cannot agree it is ultra cheap at this stage, if its team of qualified and experienced managers achieve their targets and achieve a trebling of revenue in the next three years, shareholders will be well rewarded.

It’s likely the company will need to raise between $6 million and $10 million to advance its expansion and to establish an initial infrastructure in Vietnam to support a 3500 tonnes/year operation. Then, hopefully, cashflow will contribute to further growth.

I picked up 10,000 shares at 26c in the route at the end of last week.

 

[Green08]

Re: AAQ - Australis Aquaculture

Hi Grace I don't know anything that I havn't read. Please find below some information
Insider Transactions Get Insider Transactions for:

MOST RECENT INSIDER TRANSACTIONS
Date Insider Quantity Traded Security Type Transaction PostTrade
14/7/08 Michael Cohen 5,791 Direct Shares Buy 454,328
11/7/08 Michael Cohen 100,001 Direct Shares Buy 448,537
3/7/08 Michael Cohen 26,350 Direct Shares Buy 79,886
25/6/08 David O'Sullivan 35,000 Indirect Shares Buy 2,535,000
19/3/08 Joshua Goldman 23,800 Direct Shares Buy 2,477,983
18/3/08 Joshua Goldman 76,200 Direct Shares Buy 2,454,183
6/3/08 Stewart Graham 6,000,000 Indirect Shares Sell 482,305
1/8/07 Stewart Graham 743,061 Indirect Shares Sell 6,482,305
13/7/07 Stewart Graham 210,000 Indirect Shares Sell 7,225,366
4/5/07 Stewart Graham 46,318 Indirect Shares Sell 7,435,366
12/4/07 Stewart Graham 118,316 Indirect Shares Sell 7,481,684
23/5/06 Stewart Graham 300,000 Indirect Shares Sell 7,600,000

http://au.finance.yahoo.com/q/ait?s=AAQ.AX

Now see where he bought into and with your own research you may fine his position and what is going on, A joint deal. with consideration to pricing of the shares at the time,

MOST RECENT INSIDER TRANSACTIONS
Date Insider Quantity Traded Security Type Transaction Post Trade Ownership
9/11/07 John Gillon N/A Indirect Shares Buy 1,023,000
11/9/07 Stewart Graham 100,000 Indirect Shares Buy 4,010,000
1/8/07 Robert Gould 100,000 Indirect Shares Sell 650,000

http://au.finance.yahoo.com/q/ait?s=WKL.AX

 

[grace]

Re: AAQ - Australis Aquaculture

Austalis announce sales of Barramundi going into Safeway stores - the third largest supermarket retailer in the US. 1740 stores. Well done, this should increase sales nicely.......I know the US is in the dulldrums, but they still have to eat.

Australis Aquaculture, Ltd. (ASX: AAQ) is pleased to announce that Safeway, Inc., the US’ third largest supermarket retailer and the 10th largest general retailer, will begin offering Australis Barramundi at all 1,740 of its stores this week.

Australis’ fresh and frozen Barramundi will be sold in the full‐service seafood case across the Safeway system, including Safeway, Vons, Dominick’s, Genardi’s, Randall’s and Tom Thumb stores.

Josh Goldman, Australis Managing Director said, “We are proud of this milestone as Australis Barramundi has now entered national distribution in one of the US’ most respected supermarket chains. The supply creation initiatives we began last year are yielding significantly increased amounts of product that we can deliver to large national retailers like Safeway. At the same time,
consumers are increasingly recognizing Barramundi as a mainstream seafood choice. Together, these developments are making Australis a trusted brand and a “best choice” for delicious, safe, healthy and sustainable seafood for US consumers.”

“The ability to service new customers like Safeway is an important component to meeting our FY09 sales targets,” added Mr. Goldman.

National distribution of Australis Barramundi through the Safeway chain follows the Company’s recent announcement that Australis Barramundi was recently selected by The Darden Group’s for its ‘Fresh Fish Menu’ at approximately 700 Red Lobster restaurants

.

 

[grace]

Re: AAQ - Australis Aquaculture

Quite a bit of positive news on this one of late.

Speculator wrote it up this week in his weekly column.

It’s difficult to fathom, but last week panicky punters sold Australis Aquaculture.

AUSTRALIS AQUA16 November,200816/11/2008 14:16 Sydney, Australia.
Price Change % Change
0.185 -0.015 -7.500%

Company overview
Real-time quote
AAQ.AX , 0.185, -0.015, -7.500%) down to a new year’s low point ”” after the company announced a maiden operating profit and a near doubling of revenue from its barramundi fish farms.

We added Australis to the portfolio (July 30) at 26c after the stock had more than halved from a high last year of 66c, despite a run of encouraging reports on the company’s progress.

The latest quarterly report for the three months to the end of September was no exception, with the company continuing to make considerable progress in building its revenue base and moving towards sustained profitability.

Highlights of the quarter included:


Total revenue of $3.2 million was 93% ahead of the previous year’s September quarter and 81% ahead of the preceding June quarter.
Fish sales increased 327% over the same quarter a year ago and 69% ahead of the June quarter.
The company achieved an initial operating profit of $166,000 in the latest quarter.
Its Vietnam production facility has been stocked with 550,000 fingerlings since the company was granted its operating licence in June, 2008.
Australis delivered more than 100 metric tonnes of high quality frozen fillets, continuing to nearly double volumes in each successive quarter.

At an investor presentation in Sydney in July, Australis chairman Ian Mitton predicted revenue for the full 2007-08 years would be about $5 million, rising on the company’s projection to between $14 million and $20 million in 2008-09.

In fact revenue for the full 2007-08 year came in at $5.975 million (up 28%), although the company recorded a loss of $4.4 million as it heavily invested in future growth. The revenue projection for the current year of between $14-$20 million has already been exceeded with revenue in the month of September running at an annualised rate of more than $21 million.

On the July revenue projections the company was expected to deliver a maiden profit of between $1.3 to $2.3 million for 2008-09. Since most of its product is sold into America, the recent collapse in the $A/$US rate should further enhance those figures when results are converted to Aussie dollars.

At the higher $2.3 million profit projection, the stock at last week’s low of 15c is priced on a multiple of less than six times earnings, which ignores all the potential growth out of its new Vietnam fish farm as well as Turner Falls farm in Massachusetts, the largest indoor fish-producing project in America.

Shareholders will be eager for an update on those projections when the company holds its annual meeting on November 24. In the meantime, I doubled our holding with the purchase of another 10,000 Australis shares at 15c.

 

[Basilica]

Re: AAQ - Australis Aquaculture

It is worth mentioning that AAQ in the 2008 annual report (3/10/08) of WKL owns 25,000,000 shares in WKL that they bought in 2007 and WKL was placed into Voluntary Administration a week ago. And Stewart Graham has been involved in both companies. I understand that AAQ was to assist WKL in marketing WKL products.
http://www.growfish.com.au/content.asp?ContentId=8213

 

[grace]

Re: AAQ - Australis Aquaculture

It is worth mentioning that AAQ in the 2008 annual report (3/10/08) of WKL owns 25,000,000 shares in WKL that they bought in 2007 and WKL was placed into Voluntary Administration a week ago. And Stewart Graham has been involved in both companies. I understand that AAQ was to assist WKL in marketing WKL products.
http://www.growfish.com.au/content.asp?ContentId=8213

Stewart Graham sold all of his AAQ shares if I recall, and then resigned as Chairman. Perhaps it was his involvement in WKL which caused him to leave AAQ?

 

[Basilica]

Re: AAQ - Australis Aquaculture

Stewart Graham sold all of his AAQ shares if I recall, and then resigned as Chairman. Perhaps it was his involvement in WKL which caused him to leave AAQ?

You are right Grace He sold all but 480,000 which is nearly all. AAQ may still lose their 25,000,000 shares in WKL

 

[Basilica]

Re: AAQ - Australis Aquaculture

correction it is only 2.5 milloin shares not 25 million
I do like this company. Their quality marketing focus and experienced management is a good sign.

 

[Basilica]

Re: AAQ - Australis Aquaculture

ASX annoucement today

"Australis Aquaculture Limited (ASX: AAQ) today announced that it has received an additional
US$1,000,000 loan from WM Capital, an affiliate of existing shareholder Conti Street Partners, LLC.
The funds will be used principally for working capital purposes.
The loan brings total loans to Australis by WM Capital to US$2,750,000. Under the terms of the
agreement, the current loan will be consolidated with the two Loan Notes issued in September and
October 2008 into a single Note Agreement that extends the maturity date of the prior Notes from
December 31, 2008 to January 31, 2009. The Note Agreement carries an interest rate of 15.0% p.a.
and grants WM Capital a second security interest in the Company’s assets after the Company senior
bank lender."

WOW 15% for a secured convertable note of $2.75 million Thats $412,000 / year in interest. I wonder who sold the 500,000 shares on Friday and what is the converting price for the shares.

 

[tge oracle]

Re: AAQ - Australis Aquaculture

Fellow aquaculture investors, be very cautious on this company. I am not at all impressed by the recent capital injection anouncement i.e. 1 M @ 15% p/a interest secured. This sounds awfully like desparation to me. I did predict the demise of WKL prior to it's delisting. I am not saying AAQ will necessarily go the same way, but beware!
I don't own AAQ but I am a holder of TGR and CSS which I believe offer great opportunities to aquaculture investors.

 

[grace]

Re: AAQ - Australis Aquaculture

Fellow aquaculture investors, be very cautious on this company. I am not at all impressed by the recent capital injection anouncement i.e. 1 M @ 15% p/a interest secured. This sounds awfully like desparation to me. I did predict the demise of WKL prior to it's delisting. I am not saying AAQ will necessarily go the same way, but beware!
I don't own AAQ but I am a holder of TGR and CSS which I believe offer great opportunities to aquaculture investors.

Australis is managed by the ex-Tassall manager so I do like management.

However, I don't like the thought of paying 15% interest rate to anyone!

 

[tge oracle]

Re: AAQ - Australis Aquaculture

Further warning investors, today's announcement to secure the services of yet another credit head hunter adds more concern. They are obviously chewing through the cash and will need to secure more funds soon. I see this announcement as a desparate attempt to raise more funds without that dreaded sentence " capitall raising from shareholders required ". This will decimate the share price and may not succeed. At best, it will dilute the share price to that of a penny dreadful!

 

[grace]

Re: AAQ - Australis Aquaculture

Further warning investors, today's announcement to secure the services of yet another credit head hunter adds more concern. They are obviously chewing through the cash and will need to secure more funds soon. I see this announcement as a desparate attempt to raise more funds without that dreaded sentence " capitall raising from shareholders required ". This will decimate the share price and may not succeed. At best, it will dilute the share price to that of a penny dreadful!

From the announcements I read, I think they are head hunting institutional placements. They were to be cashflow positive 08/09. The next quarterly due by the end of the month will be crucial for them. I hold.

 

[tge oracle]

Re: AAQ - Australis Aquaculture

From the announcements I read, I think they are head hunting institutional placements. They were to be cashflow positive 08/09. The next quarterly due by the end of the month will be crucial for them. I hold.

Yes Grace that is precisley what they are trying to do, but at what price? There will be precious little for share holders if they keep borrowing at 15% and any new shareholder would expect a similar deal.
I am very optimistic about the aquaculture industry generally and will continue to keep a close watch on this stock but have no intention of investing until I have better clarity.
Good luck with your holding, I hope you are not dissapointed.

 

[Basilica]

Re: AAQ - Australis Aquaculture

1 M @ 15% p/a interest secured. This sounds awfully like desparation to me.

Hi tge oracle From my brief reading of the announcement, it is more than 1M @ 15%, they rolled over the previous converting notes from the same investor to the higher interest rate so it is 2.75 M @ 15 % secured. (but it was not precise wording in the announcement)

Hi Grace, i think 08/09 in profit is optimistic,I doubt the fish in the Asian cages will be ready for market by then and will still be eating lots of expensive feed into 09/10. But who knows for sure, the water is warm up there and they do grow quickly in those conditions.

 

[tge oracle]

Re: AAQ - Australis Aquaculture

Hi tge oracle From my brief reading of the announcement, it is more than 1M @ 15%, they rolled over the previous converting notes from the same investor to the higher interest rate so it is 2.75 M @ 15 % secured. (but it was not precise wording in the announcement)

Hi Grace, i think 08/09 in profit is optimistic,I doubt the fish in the Asian cages will be ready for market by then and will still be eating lots of expensive feed into 09/10. But who knows for sure, the water is warm up there and they do grow quickly in those conditions.

Hi Basilica, yes you are right. This raises the risk profile considerably more. I can't see how they can possibly make a profit for shareholders paying 15%. Expect more capital raising amd siginificant dilution of existing shares.

 

[tge oracle]

Re: AAQ - Australis Aquaculture

I don't like to dwell on the dissapointing announcment form this company today, but my earlier posts did warn you of the consequences of holding on to this stock. I don't believe they will achieve a better financial outcome than has been provided by WM Capital, as unpallitable as it is, because nobody is lending to this type of entity.
I don't know where this will end up, but it won't be a better deal for share holders, that's for sure.
I don't hold this stock, but I am a diverse aqualculture investor. I do own TGR and CSS and these offer aquaculture investors a much better opportunity, particularly CSS if they succeed with SBT breeding success.

 

[grace]

Re: AAQ - Australis Aquaculture

I don't like to dwell on the dissapointing announcment form this company today, but my earlier posts did warn you of the consequences of holding on to this stock. I don't believe they will achieve a better financial outcome than has been provided by WM Capital, as unpallitable as it is, because nobody is lending to this type of entity.
I don't know where this will end up, but it won't be a better deal for share holders, that's for sure.
I don't hold this stock, but I am a diverse aqualculture investor. I do own TGR and CSS and these offer aquaculture investors a much better opportunity, particularly CSS if they succeed with SBT breeding success.

Thanks for drawing my attention to aaq again.

I sold off 2/3 of my holding prior to halt. That was a bit of luck.

 

[tge oracle]

Re: AAQ - Australis Aquaculture

Thanks for drawing my attention to aaq again.

I sold off 2/3 of my holding prior to halt. That was a bit of luck.

Good to hear you were able to reduce your holding, sadly, I think the share price will be significantly lower after the trading halt is lifted.
There is nothing fundamentaaly wrong with this company, they have simply been caught with too much debt and high working capital requirements at the worst time, like so many other companies.
If they are going to survive I think they will need to swallow a vey bitter pill and this will siginicantly dilute existing shareholders. But they will have to try to entice a substantial investor with a discount share issue. They have success doing a capital raising with existing shareholdesr but they are going to have to come up with a credible plan for the future and , again, the share price would be dramitically below last closing price.