CSS - Clean Seas Seafood

Re: CSS - Clean Seas Tuna

It is very pleasing to see that CSS are well on track with their production/cash flow objectives. Additionally, it good to see they are achieving good growth rates and spawning quantities.
I am satisfied with my re-investment in CSS and expect to see a continuation of this progress.
I am very confident on the seafood/agriculture sector and have raised holdings in a number of investments over the past 6 months for TGR, HUO and AAC.
Apart from strong demand and new trade deals the plummeting AUD $ is an added bonus for this sector. I am expecting to see some acquisition activity, this year, as the crashing AUD is making many businesses attractive to foreign entities looking to acquire agricultural assets.

Disc – Opinion only, invested in CSS, TGR ,HUO and AAC, DYOR

Re: CSS - Clean Seas Tuna

The recent food poisoning cases throughout Australia with Berries and Seafood helps shine a light on the high quality, environmentally responsible and sustainable nature of aquaculture in Australia. It is my view that this is just the “ tip of the iceberg” in a realization by the Australian consumer that cheap overseas products come with a risk to health and wellbeing. I firmly believe that the consumer dynamics are gradually shifting to quality, healthy and environmentally responsible products in Australia. TGR and HUO have grown their market share considerably over the past 5-10years as a result of this behavioural shift. CSS is in a very unique and desirable position of farming a great product that has the potential to become a household name in Australia. I really do hope they look to expand their product range to include Australian supermarkets. This will need careful product and packaging options, as was the case for TGR and HUO in the early years. I can see many synergies between these companies having watched and invested in TGR for many years and HUO more recently. I am of a view that the current management can see the potential and will hopefully capitalize on this opportunity.

Disc – Invested in TGR, HUO and CSS. Opinion only, DYOR.

Re: CSS - Clean Seas Tuna



I've been trying to learn VSA to assist with my investments and would appreciate your thoughts Tech on this chart.

My current thoughts/trade review

I decided to enter CSS based upon my fundamental analysis with the idea that the upcoming quarterly report/ half year report would prove a catalyst.

On the 22nd of January at 72c i entered as Technically CSS was trading near 70c support which had held at the bottom of a trading range. Low volume had started to pick up slightly and price started trending up off the lows which i took as a signal of demand building.

On the 30th of January upon the release of the quarterly the price spiked and volume was very high showing that the smart money sold into the news. A clear sell indicator. I ignored this waiting for the HY which I thought would catalyse a break from the trading range.

Price action the day before the HY was interesting with a spike and large volume. Which could be seen as possible insider trading in the expectation of a good result

The following day the HY was released which was average by my expectations leading to a large range, high volume and closing near the lows. The Following day also had a high range and high volume closing in the middle. With the previous high volume on the quarterly I expect that the smart money is selling into the news using it as an opportunity to distribute.

The day before the HY was released the smart money may have bid the shares up to try and increase demand. The smart money quite often distribute into good news and accumulate into bad news. They care nothing for the news as they already have a position, or are looking to create one. The problem with this trade is that it is stuck in a trading range between 70c-80c that I see no near term end to.

I would have sold on the HY release but i wasn't present, nor the day following. Caught me by surprise
Im a beginner trying to get better and these are just my thoughts would appreciate any comments.

Cheers

Re: CSS - Clean Seas Tuna

My view.

ACCUMULATION

Weekly charts

Re: CSS - Clean Seas Tuna

Where to from here CSS:



http://www.abc.net.au/news/2015-04-08/bluefin-tuna-farming-japan/6373310

Re: CSS - Clean Seas Tuna

nizora said:

Where to from here CSS:



http://www.abc.net.au/news/2015-04-08/bluefin-tuna-farming-japan/6373310

Click to expand...

so far, the answer seems to be "Up"
I stocked up at 7c.

Re: CSS - Clean Seas Tuna

The recent 4C, in my view, is a disappointment. CSS have, once again, under delivered particularly with production targets 1350t to 1150t. When will they ever learn the dynamics of being a publicly listed company?
If you are going to make bold and confident statements about goals and expectations you must, without doubt, ensure that they are achievable and reached. I have now nagging doubts about the new management and board of CSS and ,yes ,I have reduced my holding, fortunately, to invest in professional well managed aquaculture companies Tasal and Huon.
I will remain invested with CSS for the time being but any whiff of BS and I will exit irrespective of price.

Disc – Invested in CSS ( holding reduced ). Invested in TGR and HUO ( holdings increased ). Opinion only. DYOR.

Re: CSS - Clean Seas Tuna

tge oracle said:

The recent 4C, in my view, is a disappointment. CSS have, once again, under delivered particularly with production targets 1350t to 1150t. When will they ever learn the dynamics of being a publicly listed company?
If you are going to make bold and confident statements about goals and expectations you must, without doubt, ensure that they are achievable and reached. I have now nagging doubts about the new management and board of CSS and ,yes ,I have reduced my holding, fortunately, to invest in professional well managed aquaculture companies Tasal and Huon.
I will remain invested with CSS for the time being but any whiff of BS and I will exit irrespective of price.

Disc – Invested in CSS ( holding reduced ). Invested in TGR and HUO ( holdings increased ). Opinion only. DYOR.

Click to expand...

Technicals agree with Fundamentals. Following the Bearish Engulfing candle on Friday, April 17th, I stopped out on April 20th and have not found a good-enough reason to buy back.



Agree also that TGR and HUO look better at this stage. However, at the current stage of market cycle, I am not keen on any new long position.

Re: CSS - Clean Seas Tuna

pixel said:

Technicals agree with Fundamentals. Following the Bearish Engulfing candle on Friday, April 17th, I stopped out on April 20th and have not found a good-enough reason to buy back.

View attachment 62443

Agree also that TGR and HUO look better at this stage. However, at the current stage of market cycle, I am not keen on any new long position.

Click to expand...

I am afraid your trading vernacular is all foreign to me Pixel. As a lifetime value investor, I have never really understood or felt the need to adopt a trading approach to investing. I guess there are times when the stars align for both methods……it appears this may be the case now. We seem to be in agreement with CSS, however, I differ in my opinion on TGR and HUO. I am very confident that these two companies represent good value and will appreciate considerably over the next few years and beyond. As for CSS …. it is now race against the clock. They will really need to become cash flow positive , and soon ,otherwise they will suffer the same fate as before but, this time, investors and the market won’t be so forgiving and spare them the sword.
They have a great product and market, its up to them to show they can exploit this rare and unique opportunity. I believe they can but will be watching very closely for any hint that they are flinching.

Disc – Invested in CSS ( holding ) , TGR ( accumulating )and HUO ( accumulating). Opinion only.DYOR.

Re: CSS - Clean Seas Tuna

I have recently returned from a business/investment trip to Japan and have made some interesting observations most notably in relation to an advertisement that is regularly screening on Japanese television. The add promotes the high quality, sustainable and delicious characteristics of farmed Blue Fin Tuna (Northern Blue Fin). I did some investigating and made enquiries and was able to derive significant information on the progress and current dynamics of farmed Tuna in Japan. What I found astounded me, One of Japans largest companies (Toyota Corporation) was aggressively pursuing investments in Tuna farms throughout Japan through its investment and trading subsidiary Toyota Tsusho. They have established a business relationship with Kinki University, which predicts a dramatic ramp up of this industry over the next few years. I have attached a link, hereunder, to business details and a timeline sheet for your information.
CSS can forget any hope of establishing a relationship with Kinki, which is very unfortunate. I don’t believe there was ever any real agreement with Kinki in the past and that this was just more CSS Bull S&1t. In any case, the race has already started on Tuna Farming and CSS are stuck at the gate with a lame horse (Arno Bay facility).
I don’t view this as a major problem as I don’t believe they have the intellectual knowledge or management ability to farm tuna productively and profitably in any case.
The future of CSS lies solely in YTK and they must ramp up the marketing and public information benefits of this great product.

I have been poring over the 4C again. As is always the case with CSS they are very good at highlighting the positives and glossing over the negatives. My intuition suggests that they may not succeed with the bank financing as outlined in the recent 4C. Remember,the worlds leading agricultural investment bank (Rabo Bank ) wouldn’t touch them with a 40 ft barge pole. I can’t see Australian retail banks jumping in. CSS have an abominable business history. I wouldn’t rule out yet another Cap Raising as they need funds ,this quarter, to remain solvent.
I am re-evaluating my risk profile for CSS and projected entity valuation as I am of a view that a Cap Raising will have to be deeply discounted to attract investors….probably around 2-3c.

http://www.toyota-tsusho.com/english/press/detail/140716_002662.html

Disc – Invested in CSS ( reduced holding ) Invested in TGR and HUO (where I am continuing to accumulate). Opinion only. DYOR.

Re: CSS - Clean Seas Tuna

Thats an interesting point about Toyota oracle.
A footnote to add is just after WW2 Toyota's main income was making Fish Paste!
Perhaps they are moving away from the car market.

On the CSS front the 4C notes about 3M cash left and cash burn about 3M per Q
Another Cap raising this year maybe

Re: CSS - Clean Seas Tuna


http://www.asx.com.au/asxpdf/20150526/pdf/42yssdd68qpgqs.pdf

Highlights
 Strong sales growth – Q3FY15 YTD sales (806 tonnes) up 112% from same period in prior
year (380 tonnes)
 Consistent sizing of product all year round 4-5 kgs whole weight for Hiramasa Kingfish
 Unique product and recognised for unique sashimi quality
 Biomass has been built to 2350 tonnes per annum for further sales expansion
 Returning to key export markets, USA agents appointed
3
 Strengthened management of
Marketing and Sales with Miles
Toomey
 Extended sales force in the
domestic market to develop the
market
 In the process of returning to the
Asia market.

Re: CSS - Clean Seas Tuna

http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=CSS&timeframe=Y&year=2015

Clean Seas Tuna Limited (ASX: CSS) is pleased to provide an update in relation to our new bank
working capital facility and a significant new Federal Government research and development grant.
Bank Working Capital Facility
We are pleased to announce that we have finalised an agreement with Commonwealth Bank of
Australia for provision of a secured $7.0m Trade Finance Facility which will provide general and
transactional funding. This is an ongoing facility subject to annual review. We look forward to
working closely with Commonwealth Bank as our banking partner.
The facility will be utilised in supporting the next steps in our development strategy for our Hiramasa
Kingfish, in combination with the cash generation from our Hiramasa sales growth.
Rural R&D for Profit Grant
The Federal Government recently announced the first round of approved grants under the Rural
Research and Development for Profit Programme. This comprises up to $26.7m for 12 projects of
which one is titled “Growing a profitable, innovative, col

Re: CSS - Clean Seas Tuna

tge oracle said:

CSS can forget any hope of establishing a relationship with Kinki, which is very unfortunate. I don’t believe there was ever any real agreement with Kinki in the past and that this was just more CSS Bull S&1t. In any case, the race has already started on Tuna Farming and CSS are stuck at the gate with a lame horse (Arno Bay facility).
http://www.toyota-tsusho.com/english/press/detail/140716_002662.html
Disc – Invested in CSS ( reduced holding ) Invested in TGR and HUO (where I am continuing to accumulate). Opinion only. DYOR.

Click to expand...

The scientists at Kinki University are now selling their unique technology and business model to the rest of the world with America and Malaysia taking up the franchise.


http://www.abc.net.au/news/2015-04-08/bluefin-tuna-farming-japan/6373310

Re: CSS - Clean Seas Tuna

nizora said:

http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=CSS&timeframe=Y&year=2015

Clean Seas Tuna Limited (ASX: CSS) is pleased to provide an update in relation to our new bank
working capital facility and a significant new Federal Government research and development grant.
Bank Working Capital Facility
We are pleased to announce that we have finalised an agreement with Commonwealth Bank of
Australia for provision of a secured $7.0m Trade Finance Facility which will provide general and
transactional funding. This is an ongoing facility subject to annual review. We look forward to
working closely with Commonwealth Bank as our banking partner.
The facility will be utilised in supporting the next steps in our development strategy for our Hiramasa
Kingfish, in combination with the cash generation from our Hiramasa sales growth.
Rural R&D for Profit Grant
The Federal Government recently announced the first round of approved grants under the Rural
Research and Development for Profit Programme. This comprises up to $26.7m for 12 projects of
which one is titled “Growing a profitable, innovative, col

Click to expand...

Well, despite my concerns they have managed to pull off the bank facility. Although there is no mention of terms, and most importantly, interest rate payable, it is encouraging that CommBank have provided funds. They must have a degree of faith in CSS's business plan and future. Let's hope this is well found.
I have reverted to a less stressful position of hold for CSS in anticipation of positive outcomes ahead.

Disc- Invested in CSS. Opinion only.DYOR.

Re: CSS - Clean Seas Tuna

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01633824

What took them so long to discover the poor quality? - if true
If taurine is so important for their YTK stocks, surely they have the facility to analyse the mix?
Of course, it's easier to blame others. Keeps the Lawyers happy too.

Re: CSS - Clean Seas Tuna

It will be interesting to see how this goes. I have been involved in commercial animal/meat production, and sometimes feed quality can be a big issue, but in all of my personal experience, if a supplier produces a poor product, we simply go to a different supplier and I have never heard of feed suppliers being held responsible for problems. Don't like the product, stop using it. But, I don't know what sort of contract, if any, CSS had with the feed supplier.

It is not particularly surprising that it took them a long time to determine that a lack of taurine was the problem. Many different things can cause any animal colony to experience problems, and it may not even be immediately apparent that diet is the issue. Even after determining that the feed is the problem, determining exactly which nutrient is the issue is very difficult, generally it wouldn't even happen. As much as I dislike CSS' management, I think it's impressive they identified the taurine deficiency. I'll be watching to see what happens.

Re: CSS - Clean Seas Tuna

I have been recently communicating with an associate in Japan and have some interesting news to report. Apparently there is a news article being broadcast on Japanese television about the high demand for farmed seafood, particularly BFT and Unagi ( Freshwater Eel ). There are reports that Kinki are unable to meet demand and are running out of mature BFT. It is interesting that Japanese consumers prefer the farmed product over wild caught and the main reason for this is the fat content which improves flavour , texture and health benefits ( omega 3 etc ). Australian consumers may not realize but the same principle applies in this country. Most of our top sushi restaurants purchase farmed product in preference over wild caught product for the same reasons stated above. I believe this dynamic is an increasing global phenomenon, which is gradually gaining traction in the consumer world and more importantly, for investor’s, the financial world.
HUO and CSS have realized this potential and will benefit significantly from this changing consumption dynamic. TGR have decided to focus more on the domestic market but still have limited exports that will still benefit from this demand.
I am of a view that the conundrum facing Kinki will become a reality for HUO and CSS in the future as this raindrop becomes a flood. This is particularly relevant when noting the comment by Mr Kamiya, in my last HUO post, where he states that Salmon is the most popular sushi / sashimi choice by Japanese consumers.
It is important to note that, in the case of Salmon, Japan is only a minor producer and essentially imports most of it’s Salmon.

I will keep investors updated with any other relevant information / reports by my contacts in Japan.

Disc – Opinion only. Invested in HUO ( accumulating ) , CSS ( accumulating ) and TGR. DYOR.

Re: CSS - Clean Seas Tuna

tge oracle said:

I have been recently communicating with an associate in Japan and have some interesting news to report. Apparently there is a news article being broadcast on Japanese television about the high demand for farmed seafood, particularly BFT and Unagi ( Freshwater Eel ). There are reports that Kinki are unable to meet demand and are running out of mature BFT. It is interesting that Japanese consumers prefer the farmed product over wild caught and the main reason for this is the fat content which improves flavour , texture and health benefits ( omega 3 etc ). Australian consumers may not realize but the same principle applies in this country. Most of our top sushi restaurants purchase farmed product in preference over wild caught product for the same reasons stated above. I believe this dynamic is an increasing global phenomenon, which is gradually gaining traction in the consumer world and more importantly, for investor’s, the financial world.
HUO and CSS have realized this potential and will benefit significantly from this changing consumption dynamic. TGR have decided to focus more on the domestic market but still have limited exports that will still benefit from this demand.
I am of a view that the conundrum facing Kinki will become a reality for HUO and CSS in the future as this raindrop becomes a flood. This is particularly relevant when noting the comment by Mr Kamiya, in my last HUO post, where he states that Salmon is the most popular sushi / sashimi choice by Japanese consumers.
It is important to note that, in the case of Salmon, Japan is only a minor producer and essentially imports most of it’s Salmon.

I will keep investors updated with any other relevant information / reports by my contacts in Japan.

Disc – Opinion only. Invested in HUO ( accumulating ) , CSS ( accumulating ) and TGR. DYOR.

Click to expand...

Same story as the last however many years. Shortage of tuna, high market demand. This would be great for CSS, if only they could actually produce tuna. Their inability to produce tuna is what has made their story so dismal, and that doesn't look like changing. The kingfish side of CSS is what will make or break them. It's one thing to have a goal, but if you're unable to achieve that goal, the potential is irrelevant.

Re: CSS - Clean Seas Tuna

Sdajii said:

Same story as the last however many years. Shortage of tuna, high market demand. This would be great for CSS, if only they could actually produce tuna. Their inability to produce tuna is what has made their story so dismal, and that doesn't look like changing. The kingfish side of CSS is what will make or break them. It's one thing to have a goal, but if you're unable to achieve that goal, the potential is irrelevant.

Click to expand...

Hi Sdajii, Yes, you are quite right and I have made this point many times about SBT. CSS will probably never produce SBT. My contacts inform me that Kinki , after 25years, can only produce a small number of viable fingerlings but they are gradually increasing the survival rate. Anyway, back to the main context of my post , which was not actually about CSS's tuna program, but more about the insatiable demand for farmed seafood as opposed to wild caught. Kinki only sells it's farmed BFT through their own restaurants in Japan and there are always long queues waiting to eat there, such is the demand for the farmed product. I am of a view that the same level of demand is applying to YTK and Salmon and this is the point I am trying to get across to the investing community. It is not often that the dynamics of an industry completely change to offer new opportunities, although an example may be the internet and streaming TV altering the media landscape for FTA TV and newspapers.
I can sense an underlying desire and acceptance, by consumers, for quality and environmentally responsible farmed seafood. HUO , CSS and TGR are amongst the best in the world.
I have been a long term investor in seafood for many years and feel more confident than ever that investors will embrace this industry in the years ahead.
I am, of course, heavily invested so do have an ax to grind but I will keep posting information as it comes to hand for the benefit of investors reading our posts.

Disc - Opinion only. Invested in CSS ( accumulating ) , HUO ( accumulating ) and TGR. DYOR.