CSS - Clean Seas Seafood

[tge oracle]

Re: CSS - Clean Seas Tuna

That sounds encouraging Truevalue.

I hope the Cap Raising details are thorough and leave no question marks for investors.
The 25c price is lower than most would have expected but provided it covers costs and extinguishes debt it could be very attractive. Many of my other investments that have made significant Cap Raisings are well above issue price. Despite the initial pain it does reduce risk and uncertainty.

Steve5, CSS have advised the market they need more time to complete the raising. I don't have any concerns about this at this stage.

 

[steveba5]

Re: CSS - Clean Seas Tuna

I spoke with Lonsec this morning and they informed me the latest raising had been completed and the trading halt finishes Monday.

 

[smallfry]

Re: CSS - Clean Seas Tuna

ABC News item:

http://www.abc.net.au/news/stories/2009/10/16/2716201.htm

posted about 3 pm....

Bluefin tuna stocks close to collapse.

The prized southern bluefin tuna industry, worth hundreds of millions of dollars to Australia, could be heading for a major collapse unless a moratorium on fishing the species is adopted.

That is the view of TRAFFIC, a program of the World Wide Fund for Nature (WWF), and several scientists who are becoming increasingly concerned at the low level of spawning stock.

The southern bluefin tuna is at an all-time low, below 10 per cent of its original population size, and what that means is at any time it could collapse.

Sad as this news may be for the world, if CSS have truly mastered the technique of captive breeding the returns could be astonishing? Views?

Interesting to watch on Monday.....

 

[BlueHshoeLvs CSS]

Re: CSS - Clean Seas Tuna

ABC News item:

http://www.abc.net.au/news/stories/2009/10/16/2716201.htm

posted about 3 pm....

Bluefin tuna stocks close to collapse.

The prized southern bluefin tuna industry, worth hundreds of millions of dollars to Australia, could be heading for a major collapse unless a moratorium on fishing the species is adopted.

That is the view of TRAFFIC, a program of the World Wide Fund for Nature (WWF), and several scientists who are becoming increasingly concerned at the low level of spawning stock.

The southern bluefin tuna is at an all-time low, below 10 per cent of its original population size, and what that means is at any time it could collapse.

Sad as this news may be for the world, if CSS have truly mastered the technique of captive breeding the returns could be astonishing? Views?

Interesting to watch on Monday.....

Smallfry this is sad news but as you rightly point out good for CSS, combined with concerns re: overfishing of Northern Blue Fin in Mediterranean might bring the spotlight onto the stock. We all hold our breath for Monday. I am personally dissapointed the cap raising was at such a large discount
(especially when not offered to current holders of the stock), but with some big fish (excuse the pun) becoming aware of the stock it might not be such a bad thing in the long run. Time will tell.

 

[nathanblack]

Re: CSS - Clean Seas Tuna

Gee, that's quite a discount Truevalue! I was thinking mid 30's.

I will be watching very closely for the status of YTK , if they provide them, because we are going to need revenue support for SBT growout over the next couple of years otherwise it will be back to shareholders for more funds.

What are your views on this?

A few months ago i was considering buying into this stock, partly from the high quality posts on this forum. i have no experience in this industry/sector but the forum has helped me see the huge potential. and i may one day invest, especially if cap raising at such a discount brings the sp sharply lower.

the one thing that has stopped me at this point is the company seems to prefer cap raisings at a heavy discount AND to outside investors. i'd feel more comfortable(less dilution) if they tapped existing holders first and only topped up externally if their was a shortfall.

cheers and goodluck on monday.

 

[explod]

Re: CSS - Clean Seas Tuna

From a trend perspective the stock is an absolute dud, if I held even at a huge loss I would put the money into something that is going up then back in when CSS gets back into uptrend which would be towards the 85 cent mark.

A lot got into this from about April with high hopes, since dashed so expect a lot of resistance/selling between 60 and 70 cents, will take a great deal for this to recover beyond that.

cheers explod

 

[tge oracle]

Re: CSS - Clean Seas Tuna

I think it's fair to say every CSS investor wishes they had sat on the sidelines for the past 4 years. The stock listed @ 50c and now, nearly 4 years later, new investors are getting onboard at half that price.

Despite their recent SBT success and the low offer price it is still an extremely risky investment, possibly more so than at any other time.
This cap raising is about 12 mths early and should have been made on the pretext of commercial propogation of SBT fingerlings. This hasn't occurred yet! but investors are being tapped for 50Mill as if it had.

It is a very simple proposition now, they have to succeed with a commercial scale breeding of SBT fingelings this summer. Failure to do so will defalte the confidence of even the most stoic supporters ( investors ).

If I were not invested I would sit on the sidelines until they succeed as I don't believe the stock will appreciate as it did a couple of years ago. Investors will be far more cautious and only reward the company when thay actually achieve goals not just make promises.
There will plenty of time for investors to get onboard then.

I think most of us long termers "share the dream" and realize the potential but it is make or break time now.

We will know the answer by April 2010!

 

[nathanblack]

Re: CSS - Clean Seas Tuna

Am i correct in saying this $50mil cap raising is only to payout a loan facility, and CSS will still probably tap the market again in 12months for working capital to go commercial?

is their more dilution ahead?

 

[truevalue]

Re: CSS - Clean Seas Tuna

Am i correct in saying this $50mil cap raising is only to payout a loan facility, and CSS will still probably tap the market again in 12months for working capital to go commercial?

is their more dilution ahead?

No the loan facility is $20m and they had $13m cash on balance sheet. After paying back the $20m they will have $40 odd mill for working capital. They should be right for a few years at least. Any futher capital raisings will only happen if the market for SBT justifies a scale upgrade in production.

 

[steveba5]

Re: CSS - Clean Seas Tuna

Well CSS have been slaughtered on opening today. They've dropped around 40%. I'm very annoyed that the company discounted shares so much in the capital raising and effectively drastically reduced the value of already existing shares. I've lost a lot of money today!

 

[nizora]

Re: CSS - Clean Seas Tuna

ABC News item:

http://www.abc.net.au/news/stories/2009/10/16/2716201.htm

I]

Interesting to watch on Monday.....

The prized southern bluefin tuna industry, worth hundreds of millions of dollars to Australia, could be heading for a major collapse unless a moratorium on fishing the species is adopted.

That is the view of TRAFFIC, a program of the conservation organisation WWF, and several scientists who are becoming increasingly concerned at the low level of spawning stock and the low levels of annual recruitment of young fish to that of breeding stock.

The issue will come to a head at the annual Commission for the Conservation of the Southern Bluefin Tuna (CCSBT), which meets in South Korea next week.

Lateline understands the scientific report to be presented at the meeting is expected to show a dramatic fall in stocks.

The delegates to the commission have all signed confidentiality agreements and the true state of the stock will only be revealed once the meeting finishes on Friday, October 23.

One of the delegates to the CCSBT, CSIRO scientist Campbell Davies, cannot reveal the latest scientific data but says the information from the 2008 reports shows the stock is not recovering, despite significant cuts to quotas over the past 10 years.

He says "this level is below the level of many nationally and internationally recognised limit points for fisheries management". In other words, below this point is crisis time.

The global marine program leader for TRAFFIC, Glenn Slant, puts the situation more bluntly: "The southern bluefin tuna is at an all-time low, below 10 per cent of its original population size, and what that means is at any time it could collapse."

"Just this week the Australian Government released its status report ... and I can tell you there is a lot of red ink in it which represents continued overfishing and overfished levels."

The report Mr Sant is referring to is the Fishery Status Reports 2008, put out by the Australian Bureau of Agricultural and Resource Economics.

But Lateline believes the evidence to be presented to the CCSBT next week may show the southern bluefin tuna is now in a worse state than its northern cousin - the northern bluefin tuna, which has just been submitted by the Prince of Monaco for what is known as a CITIES listing.

The CITIES parties will now consider whether the tuna should be listed as an "endangered species". If accepted it would ban the trade in the species for commercial purposes, placing much more pressure on the southern bluefin tuna.

Scientists are improving their methods of stock assessment. Since the 1990s, electronic tags have revealed information about how the southern bluefin tuna migrates over large distances and how it hunts for food.

This information is helping scientists to more accurately determine the size of the spawning stock. Also, there is some hope that the use of genetic tags - a type of DNA fingerprinting technology - will allow scientists to estimate the size of the spawning stock independent of fishery reports.


Data questioned

The Australian Tuna Association, which represents the Port Lincoln community, disputes the scientific claims. Chief executive Brian Jefferies says the current data is not "transparent".

"The stock is recovering, there is no question about that. What everyone agrees on is that the stock is not at risk. Where people disagree is how quickly will it take to recover."

Australian tuna fishermen are angry the benefits that should have flowed from large cuts to the quota in 1990, and then by 50 per cent in 2006, were cancelled out by years of illegal overfishing by Japan.

Several years ago, the Japanese Government admitted it had illegally taken more than 120,000 tonnes of tuna above their total allowable catch (TAC). The figure is believed to be closer to 200,000 tonnes.

Mr Jefferies says the Japanese Government is "pulling their fishermen into line" and should be given credit for that.

However, Mr Jefferies say there should be a debate about whether Japan needs to pay back the thousands of tonnes of tuna it was illegally catching and selling.

"They should pay back 200,000 tonnes, when they only have a quota of 6,000 tonnes - this is a political issue for the two countries. Let's see if the Government takes into account other issues such as the health of the Australian tuna industry."

But Mr Jefferies does not believe next week's CCSBT meeting in South Korea will decide to significantly cut the total allowable catch for south bluefin tuna.

"The season is about to start, the boats and pontoons are in the water already. That is not realistic. That is not going to happen," he said.

"The real debate will be 2011, but it will be informed by the data available in 2010. We shouldn't panic and be driven by short-term decisions."

The Australian Tuna Association says it could cope with a cut to quotas if it was given enough time to adapt and the market conditions were right.

"If we were given plenty of notice, and the prices in the market were right, we will do what's best for the long-term of the resource," Mr Jefferies said.

"Australia is the only country that relies on this resource. Other countries have other fish and remember Port Lincoln has 5,000 working families relying on this resource.

"The data is not transparent enough. By 2011 we will have a better idea of where the stock actually is instead of just speculating."


Crunch time

But Mr Sant says there is enough evidence on the public record to show the stock is in severe decline.

"Unfortunately, when we talk about fisheries we are talking about communities and people," he said.

"Here we are in a fishing port, this port 20 years ago was dependent on eastern gem fish catches. The management of that stock was too little and too late, so the stock collapsed. At some stage we have to make hard decisions if we want a long-term future for the industry and the communities."

Mr Sant says he has been attending CCSBT meetings for 16 years but now it is "crunch time".

"What we would like to see in Korea is for the commissioners at this meeting to substantially reduce the catch of tuna and consider a zero catch for the next couple of years. We need to get the southern bluefin tuna on a firm footing if we are going to see a recovery of the stock and the industry."

 

[kenny]

Re: CSS - Clean Seas Tuna

Well it seems that long suffering shareholders will get a $15000 look-in on the 25c placement by way of a SPP. Record date 24/11/2009 from the announcement.

Can't say I'm thrilled with the way this has been handled.

Cheers,

Kenny

 

[enigmatic]

Re: CSS - Clean Seas Tuna

Has turned a 50% discount into a 16% discount if it closes in any closer on 25cents far less likely to make the capital raising, would of been far better to offer it at 40cents then 25cents would of still been arround 20% discount and far less likely to cause a massive decline in price.
lucky i had little invested, was just a gamble one that obviously didn't pay off.

This one could be interesting long term but will be looking for a base and then upward trend before considering this again.

 

[drlog]

Re: CSS - Clean Seas Tuna

I'm a bit confused. Why are people so angry over this?

Sure, this dropped the price right now but isn't it a reasonable thing to do in order to raise capital? It will put CSS in a better position to do what they set out to do. Also, as I understand it, all current shareholders have access to the SPP, right?

I purchased CSS with the knowledge that there are risks. If you wanted to buy in to a lower return, lower risk company that is actually making profits now, there are plenty of other shares listed on ASX.

 

[steveba5]

Re: CSS - Clean Seas Tuna

I'm a bit confused. Why are people so angry over this?

Sure, this dropped the price right now but isn't it a reasonable thing to do in order to raise capital? It will put CSS in a better position to do what they set out to do. Also, as I understand it, all current shareholders have access to the SPP, right?

I purchased CSS with the knowledge that there are risks. If you wanted to buy in to a lower return, lower risk company that is actually making profits now, there are plenty of other shares listed on ASX.

I think the initial shock of seeing your investment drop by 40% in a matter of minutes gives you a fright. Since learning that existing shareholders have access to the 25cent shares I feel a bit better however it does worry me that CSS had to offer such a discount on the shares to make them attractive to investors. Todays price has recoverd quite a bit of ground so the feeling is a bit more optimistic now! At this point in time, I will participate in the SPP.

 

[Ruincity]

Re: CSS - Clean Seas Tuna

Well I'm certainly not that impressed about the turn of events either.
The SPP record date is the 24th of November.
Theoretically any Tom, Dick or Harry can now get involved in this.
They will be forced to buy / invest some sort of cash for this to be applicable.

I will be very interested to see what the full details of this SPP entail..

Personally I found the investor presentation a pretty lacklustre affair with a whole heap of re-hashed information. I was also disappointed with the way it portrayed this capital raising as being somewhat planned rather than the unexpected event that we all know it is!!

More to discuss tonight when I get some free time.

Cheers.

 

[Basilica]

Re: CSS - Clean Seas Tuna

I wish we all knew what Rabo / Ridley / and the latest investors know.
Has CSS stated how long this round of funding will last into the commercial production stageyet?

 

[drlog]

Re: CSS - Clean Seas Tuna

From what I understand, this capital raising should get them up and running in commercial quantities in the next few years and pay off their debt. I could be wrong

Yeah, anyone could jump in, buy $500 worth as long as they have the shares before the SPP cut off date (some time in Nov) and then participate in the SPP at the discounted price.

Its "unfair" because these new shareholders didn't have the losses we just had but it's good because it means that CSS gets more capital than they otherwise would although, I guess there could be a scale back?

Anyway, it's all good fun!

 

[Basilica]

Re: CSS - Clean Seas Tuna

From what I understand, this capital raising should get them up and running in commercial quantities in the next few years and pay off their debt.
Anyway, it's all good fun!

Maybe, i have not seen a prediction from CSS on it.
I assume there will be cost overruns from the upgrades to the hatchery.
I am very unclear if they now have all the infrastructure needed to produce a profitable 2012 crop and the current cash is just for future expenses (and past debt) or is more infrastructure needed for the 2012 harvest.
Yes it is all good fun but i am still on the side line waiting.
Many readers here have not had fun at all.

 

[truevalue]

Re: CSS - Clean Seas Tuna

From what I understand, this capital raising should get them up and running in commercial quantities in the next few years and pay off their debt. I could be wrong

Yeah, anyone could jump in, buy $500 worth as long as they have the shares before the SPP cut off date (some time in Nov) and then participate in the SPP at the discounted price.

Its "unfair" because these new shareholders didn't have the losses we just had but it's good because it means that CSS gets more capital than they otherwise would although, I guess there could be a scale back?

Anyway, it's all good fun!

I think you will find you will be able to buy as many shares as you already own (if you own 10,000 you can apply for 10,000 @ 25c) in the SPP up to a maximum of 60,000 shares. If your holding is more than 60,000 then you are being diluted but you hopefully topped up in the placement.

I think there is a good chance Ridley and Rabo come back to the party once the capital raising is approved.