Australian (ASX) Stock Market Forum

CSS - Clean Seas Seafood

Jump to new
Re: CSS - Clean Seas Tuna

kingkev said:
Are we going to get an ann before Xmas?????????? Not sure.....By bringing forward the sbt spawning by 6 weeks maens that something should be happening around this time.

Waiting for a Xmas present..............hopefully not smelly fish that died in the spawning or growout process.
Click to expand...

The spawning will need to happen soon BK otherwise they will run out of summertime water temps like last year.

Of greater concern for me , however, is the total lack of confidence in CSS shown by the Directors of the company. Ellis-Flint ( Chairman ), M.Sterhr ( Ops Manager ), Ashby ( former CEO ) and Steere ( acting CEO ) did not put one penny towards the recent Cap Raising. They couldn't even bring themselves to stump up for the minimal $ 1k .
This speaks volumes in my view and raises serious questions about the comments made by E-F at the AGM regarding growing confidence of the Directors. Hagen to his credit, participated, he had no choice really, but it would be only small change for him.

Disc - Reduced since directors holding announcements published. Maintain hold on remainder awaiting CEO, spawning announcements.
Opinion only. DYOR.
 
Re: CSS - Clean Seas Tuna

It would appear that CSS are incapable of bringing the SBT spawning forward enough to ensure a summer water temp growout for the SBT fingerlings. We are reaching the end of Dec and still no spawn. By my calcs. previous early spawns occurred around the 2nd/3rd weeks of Jan. They will not achieve their stated goal of 6 weeks early , it will be more like 2-3 weeks provided it happens now. The clock is well and truly ticking as the outcome may be no different to last year, at best.

The failure of the Directors to participate in the Cap Raising had me scrutinising E-F's comments in his presentation at the AGM. One thing stuck in my mind and now has me wondering what he meant when he said quote " the company is working toward profitability in the YTK business in the short term".
I am wondering what he meant here i.e does he mean it will be profitable soon, or, will it be profitable in the short term whilst they clear excess inventory. I now suspect the latter as this will mean medium to longer term YTK will be , possibly, unprofitable.
What does this mean for CSS well, quite simply, they will be spending more than they earn, hence, the Cap Raising. The weakness in the value of CSS is being attributed to this burning of cash in my view. I will need to reassess my valuation of a couple of weeks ago as I worked on the assumption of very low cash burn and a profitable YTK business in the long term.

Anybody else have a view on this or have you all bailed out of CSS long ago?

Disc -invested - Holding reduced to minimal since Director disclosures. My opinion only,not based on any factual information. DYOR.
 
Re: CSS - Clean Seas Tuna

tge oracle said:
It would appear that CSS are incapable of bringing the SBT spawning forward enough to ensure a summer water temp growout for the SBT fingerlings. We are reaching the end of Dec and still no spawn. By my calcs. previous early spawns occurred around the 2nd/3rd weeks of Jan. They will not achieve their stated goal of 6 weeks early , it will be more like 2-3 weeks provided it happens now. The clock is well and truly ticking as the outcome may be no different to last year, at best.

The failure of the Directors to participate in the Cap Raising had me scrutinising E-F's comments in his presentation at the AGM. One thing stuck in my mind and now has me wondering what he meant when he said quote " the company is working toward profitability in the YTK business in the short term".
I am wondering what he meant here i.e does he mean it will be profitable soon, or, will it be profitable in the short term whilst they clear excess inventory. I now suspect the latter as this will mean medium to longer term YTK will be , possibly, unprofitable.
What does this mean for CSS well, quite simply, they will be spending more than they earn, hence, the Cap Raising. The weakness in the value of CSS is being attributed to this burning of cash in my view. I will need to reassess my valuation of a couple of weeks ago as I worked on the assumption of very low cash burn and a profitable YTK business in the long term.

Anybody else have a view on this or have you all bailed out of CSS long ago?

Disc -invested - Holding reduced to minimal since Director disclosures. My opinion only,not based on any factual information. DYOR.
Click to expand...

One of the reasons I have stayed in........is because I think that the YTK business will eventually bring in the dollars..........I think most of the shareholders see past the YTK and focus a lot more on SBT which is another story all together. I sopke with them 3 days ago about spawning earlier but :NO COMMENT" they will let the public know when they are ready......I got the feeling things have started but a bit like you and think that they might only be able to bring spawning forward by 1 or 2 weeks MAX. This will not suffice and we will see mortality rates up there again and the sp....well how low will it go.......maybe 5c

I will hold for all my silly reasons and probably even accum,ulate if it gets to 5c or 6c
 
Re: CSS - Clean Seas Tuna

You may be right Kingkev but they have had 6 years to get the YTK business right and still can't make it profitable. SBT is another story, but spawning may already be too late for this season.
I will continue to hold my remaining investment but the lack of confidence shown by the directors has be concerned. CSS are very poor at disclosure so inveStors have to watch for signals and this is one of them for me.

Disc- invested. DYOR.
 
Re: CSS - Clean Seas Tuna

Happy to see that they finally have found a CEO. Good to hear he has aquaculture experience as well. Hopefully he has good customer relations experience as we are tired of being kept in the dark with minimal and obscured communication.

Hopefully he can give us some communication on spawning progress
 
Re: CSS - Clean Seas Tuna

He does seem to possess the necessary aquaculture experience, I am not so sure about his Management credentials though. CSS need a CEO who can effectively manage on a leadership and financial level, they already have an abundance of scientific and aquaculture experience within the company to advise the CEO.

In any case, the failure to spawn SBT early is the real issue for investors now. I am not an expert but I do believe it is too late for this years juveniles, if they achieve any.
We are almost at last years spawn date which proved unsuccessful last year.

Disc - invested ( minor holding ) . Opinion only. DYOR.
 
Re: CSS - Clean Seas Tuna

Would be Great to see our SBT get to 10% of the size of that one. Cannot find much on the new CEO's business acumen.......although a lot on research.

We need an ann NOW on the spawning

Can someone put a cracker under their backsides and see if we can get some info out of them?
 
Re: CSS - Clean Seas Tuna

kingkev said:
Would be Great to see our SBT get to 10% of the size of that one. Cannot find much on the new CEO's business acumen.......although a lot on research.

We need an ann NOW on the spawning

Can someone put a cracker under their backsides and see if we can get some info out of them?
Click to expand...

I guess the reason they are so quiet is because there is nothing to report. Under ASX listing guidelines they are duty bound to inform the market when an event material to the value/share becomes apparent.
 
Re: CSS - Clean Seas Tuna

kingkev said:

Hopefully he can give us some communication on spawning progress
Click to expand...

Early Commencement of 2012 Southern Bluefin Tuna Spawning Season
Clean Seas Tuna Limited (ASX: “CSS”) is pleased to report early progress with its previously announced strategy of bringing forward spawning from the Company’s Southern Bluefin Tuna (SBT) broodstock.
The company is encouraged that the first element of the strategy has been achieved with spawning commencing significantly earlier than last year’s spawn start at Clean Seas’ specialised hatchery at Arno Bay on the Spencer Gulf, South Australia.
The earlier start is with a regular number of small but viable spawns in the past month, allowing the instigation of the all-important new season’s larval rearing trials at the hatchery.
Our aim is to continue spawning the tuna for as long as possible to enable our team of experts to further progress the Company’s understanding of tuna juvenile production.
As previously advised, the ultimate target strategy for the new spawn is to advance timing and provide older, more resilient fingerlings for marine grow-out by the time ocean water temperatures begin to drop in the Autumn.
In summary, the Clean Seas team is encouraged by the earlier spawning activity and awaits expectantly the crucial next stages towards achieving further progress overall with its SBT breeding program.
The Company will provide investor updates on the current SBT spawning and larval rearing season with the next key stages being the spawning build for production volume and then transfer of fingerlings for controlled grow-out trials to either sea cages or holding tanks.
As previously reported, Clean Seas achieved a world “first” in March 2011 with the successful transfer of 149 juvenile SBT into a sea cage from the Arno Bay breeding facility.
The SBT juveniles eventually succumbed to the cold winter ocean temperatures, which in turn led to the Company’s strategy of bringing forward the current spawning season and targeting the ocean transfer of the SBT fingerlings during warmer water temperatures.
 
Re: CSS - Clean Seas Tuna

Not exactly what we were looking for.............where are the details?

Dissapointed
 
Re: CSS - Clean Seas Tuna

The announcement confirms my suspicions that this years breeding season is unlikely to to show any improvement from last year and that is why the Directors did not participate in the Cap Raising.
Even if spawning improves it is too late, the water temps will be too cold and result in mortality of the SBT juveniles.

I have written off this seasons SBT project and will wait for news on YTK sales, inventory and profitability.

Disc- Reduced to absolute minimum holding in order to participate in next Cap Raising which, in my view, will be needed this year. Opinion only. DYOR.
 
Re: CSS - Clean Seas Tuna

Agree with you there.

They might decide to grow out most fingerlings in tanks under controlled conditions.

I believe the plan to bring forward the spawning and grow out is a GREAT plan but they have not done enough and the rsulting mortality rates will show this later on.
 
Re: CSS - Clean Seas Tuna

Bringing the spawning forward is the right concept Kev but I am not convinced they will be able to achieve this in reality. The main problem ,as I see it, is that the water temp in the broodstock tank is too low. SBT spawn in the warm tropical waters of the Java Sea. They need to replicate these conditions to encourage spawning.
One way of achieving this would be to install solar heating to the main broodstock tank to alter the water temp cycle. This would be expensive to install and operate but I am of a view that significant( read-commercial ) spawning will only occur if water temps are a lot warmer.
Another option would be to install solar heated growout tanks for the juveniles. This would require a lot more funds as the tanks would need to be of sufficient size and scale to accommodate the fingerlings.
I am afraid SBT will remain in research mode if they continue down their current path.

They required $ 5M to cover SBT costs this summer and only received $1.6M. I can only assume they will be drawing down on their cash reserves, unless YTK is profitable and contributing.
Either way, they will require substantial funds to move forward this year and another significant Cap Raising will be required in my view. The lack of participation by investors last time suggests that it would need to be massively discounted and, even then, may not be successful.
I will , once again, sit on the sidelines for now.

Disc - Min hold invest. Opinion only, not based on any factual information.DYOR.
 
Re: CSS - Clean Seas Tuna

Well I have stopped accumulating for now. Going from research to commercialisation is no doubt going to cost a lot. I think there will be some sort of positive ann come out fairly soon and if the share price spikes they will be quick to follow up with another capital raising. Astute buyers like the 2 of us, I suspect, will just sit and watch as we have been burnt before. Water temp is certainly an issue and that issue will not go away and trust that their research into this is thorough. Tuna feed in another issue that could stall things. Seals are also having a ball getting into the cages and enjoying some free sushi. The more I look into this the more problems become apparent.

The YTK business is what keeps this one afloat however the market see's CSS as a Tuna business and nothing else. Holding on the basis that they their research team will eventually cross their t's and dot all their i's and get it right.
 
Re: CSS - Clean Seas Tuna

Yesterday's 4C show's a disturbing decline in revenue from sales ( YTK ).

June 11 - $8.8M
Nov 11 - $ 7.6M
Jan 12 - $ 7M

Despite their claims of increasing prices, IMO ,the rundown of inventory has been the main contributor to revenue over the past 12 months. This excess inventory must be nearing completion so we will get a true picture of sales over the course of this year.

disc- As before.
 
Re: CSS - Clean Seas Tuna

Another worrying sign for CSS today, Frode Teigen is selling down. I thought Citi or JP Morgan were doing the selling. It is far more concerning that FT is reducing as he has a very good understanding of the aquaculture industry and, in particular , the outlook for CSS. I regard this as a massive vote of no confidence for CSS. First the Directors, now FT, it doesn't bode well for the future.

Disc- hold bare minimum for now. Opinion only. DYOR
 

Similar threads

ducati916
February 2025
2
Replies
33
Views
2K
ducati916
ducati916
R
Great Companies
Replies
3
Views
2K
divs4ever
divs4ever
R
AMZN - Amazon Relative Valuations (NASDAQ)
Replies
4
Views
2K
mullokintyre
mullokintyre
divs4ever
ZYAU - S&P/ASX 300 High Yield Plus ETF
Replies
0
Views
1K
divs4ever
divs4ever
ducati916
August 2024 DDD
2 3 4
Replies
75
Views
19K
ducati916
ducati916
Top