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CSS - Clean Seas Seafood

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Re: CSS - Clean Seas Tuna

Yesterdays announcement confirms my valuation of 12th Sept ( post # 1028 ) of around $ 5-6M. I actually think it would be the lower end of this scale and mainly for cash on hand. Personally, I wouldn't invest at this price, approx 1c per share, as I don't believe enough retail investors will support a Capital Raising and there is a risk you will not get a refund if the company goes into administration. They are going to need substantial funds, even with a reduced YTK operation , to make CSS a viable entity.

The problems I have with CSS are many :

1. They have been unable to make YTK profitable after 7 long years.
2. Institutional, Foundation and 3rd Party investors are not interested in CSS. This risk profile of CSS is for distressed company Hedge Funds now and even they risk getting burned.
3. Despite their ISO accreditation I have concerns about their Quality control measures. There have been a number of instances were this has been brought into question.
4. I am not totally convinced they have solved the YTK health issues. They have re-located to nearer Port Lincoln with totally new stock and all seems OK for now but I would prefer to wait a while to see how these fish grow and develop before considering investing.
5. I have always held concerns about their corporate and ethical behaviour. I have long held concerns about the trading in this company and about the time lines for announcement through the ASX.

My guess is that they will try for a Cap Raising from retail investors in the new year. If it gets up ( highly unlikely ) I intend to sit and wait to see if they can build a profitable business out of YTK, like Tassal have with Salmon.

Disc - Not invested in CSS , invested in TGR. Opinion only and not based on any factual information. DYOR.
 
Re: CSS - Clean Seas Tuna

It is a pity about all The job losses in the tuna project.
It will also be difficult to control IP with ex CSS people.
After 7 years and millions of dollars, did CSS achieve any better than Japan or Peru had achieved 7 years ago?.
I like your valuations TGE but it should be noted that assets diminish quickly with negative cash flows.
 
Re: CSS - Clean Seas Tuna

I can't help thinking that the past year or so is all about letting Frode Tiegen get out with something rather than zip!
He has been able to sell out to starry eyed retail investors and, perhaps, distressed company hedge funds but with around 30M to go I think time will run out and, unfortunately for him, he will be still holding when the "pass the parcel" explodes.

I am surprised they have held out to 2013, I did predict administration by year end 2012.......I don't think there is long to go now though!

Disc - Not invested, opinion only and not based on any factual information. DYOR.
 
Re: CSS - Clean Seas Tuna

Going by the 4C lodged last week i do not expect the end will be anytime soon.
They still have cash in the bank.
They still have assets to sell.
The board of Directors are still getting paid.
The related party transactions are still being paid (228 k last 1/4)

Did any one notice that Cell Aqua CAQ entered Administration late last year?
Are Tassal and Clean Seas the last 2 Aquaculture stocks left?
 
Re: CSS - Clean Seas Tuna

Basilica,

I wouldn't get too swayed by the " creative accountancy ", all they are doing is shifting the remaining asset value into the cash reserves and, by doing so, they are giving the false impression of positive cash flow and growing cash reserves. IMO they should be valued on cash alone at present but, as you quite rightly point out, there are still sunstantial outgoings for 3rd party costs, directors fee's and employee wages so even this cash balance is tenuous in my view.

Yes, did note CAQ demise. TGR and CSS are the only ones left standing now.

Disc - Not invested in CSS, invested in TGR. Opinion only and not based on any factual information. DYOR.
 
Re: CSS - Clean Seas Tuna

smart said:
Yes yes dont get swayed i agree.
Click to expand...

I also agree, and have not been swayed.
The point i was making is, if and when, only the board of directors remain, they can still afford to pay themselves for a few years by selling off the assets.
There is no incentive to end it earlier.
 
Re: CSS - Clean Seas Tuna

I sure we all dont have to worrie any more i am sure the end is much closer for css than we think.
 
Re: CSS - Clean Seas Tuna

smart said:
I sure we all dont have to worrie any more i am sure the end is much closer for css than we think.
Click to expand...

Looks like CSS is finding supports. Share price is up 18.75% today, and the volume is also encouraging.
 
Re: CSS - Clean Seas Tuna

Yes i see that but after 8 long years of losses do we really think today is a day to put all our cards on the table?
 
Re: CSS - Clean Seas Tuna

I have thoroughly examined the recent investor update and may have concede that my prediction of the demise of CSS may be premature.

If the commentary and text of the announcement are to be believed then it outlines realistic and achievable goals in my view.
I can’t ever recall CSS being so modest with their vision and plans for the future, perhaps, they have finally realized that it is better to under promise and over deliver than vice versa.

I have always held the view that they must achieve a viable and profitable YTK business before embarking on an attempt at SBT production. They are reporting strong demand and record prices for YTK. I am inclined to agree, YTK is very hard to get at my local fish shops and when it is, it is very expensive.

There appears to be strong investor support, albeit at a low valuation, so any attempt at a cap raising may get up, particularly, considering the expected low capital requirements over the next year or so.

Disc - Not invested, however, watching closely. Opinion only and not based on any factual information. DYOR.
 
Re: CSS - Clean Seas Tuna

If you go by ccs past history they have not delivered any sort of profits and with the price of feed going up every year you can see why they are downgradeing. Lets hope after years of losses they will come thu!!
 
Re: CSS - Clean Seas Tuna

nizora said:



You might want to check this out: http://www.asx.com.au/asxpdf/20070831/pdf/3149ps50h64xzz.pdf
Click to expand...

Yes, tks Nizora, most of us long term followers of CSS will remember those day's. Sadly, this was not replicated in fllowing years.
Anyway, it is imperative that they don't make the same mistakes again, of utmost importance is to instill investor confidence and deliver on their plan. If they can this, CSS will survive and grow into a profitible entity. Tassal have shown the potential for a well managed and marketed aquaculture company, YTK has the potential to deliver the same outcome for CSS.
Additionally, they must distance themselves from opportunistic advisery groups who are motivated by a " quick buck". Their succesful future lies with the investors who, I now believe, may support them to re-build the company.

I hope they don't squander this opportunity.

disc - As before. invested in TGR.
 
Re: CSS - Clean Seas Tuna

tge oracle said:
YTK has the potential to deliver the same outcome for CSS.
.
Click to expand...

Supports are coming back. SP has gone up another 35% today! It is a long way from their high, but this small confidence is a giant leap from a grave for CSS.
 
Re: CSS - Clean Seas Tuna

Yes i agree but it looks like the small confidence is on the way down again.
 
Re: CSS - Clean Seas Tuna

For a long time before it happened it was obvious that CSS' only hope was to drop the tuna. Why they didn't do it years earlier is beyond me. As soon as they did it I wondered if they may be able to avoid bankruptcy and become profitable. I'm not sure either way, but it should be an interesting and bumpy ride.

Good luck to all. I'll be watching from the side.
 

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