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CSS - Clean Seas Seafood

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Re: CSS - Clean Seas Tuna


No worries, BlueH. Looking at yesterdays 4C my opinion is one of disappointment. The main reason for this is my enduring lack of trust in CSS's woeful management. Once again, they have failed to deliver on promises by not achieving the 1350tonnes sales goal for YTK. It is simply unacceptable for this company to effectively pump up the tyres with their market updates, only to let them down when they are obligated to honest and accurate reporting by the ASX / ASIC.
Looking past this disappointment, fortunately, they have a great product that will sell and, most likely, at ever increasing prices. Additionally, fish growth and sales are increasing but it appears marketing is still a major weak point for CSS. I only wish they would be taken over or merge with a quality well run and managed company like HUO or TGR. With a quality management it would be blue skies for CSS. I hope all investors take this in to account at AGM,s and push for a complete change of management and ownership of CSS.....including the Sterhrs by voting against supporting the management and board.




Disc - Opinion only. Invested in CSS ( hold ), TGR ( hold ) and HUO ( accumulating ).DYOR.
 
Re: CSS - Clean Seas Tuna



Just as I finish typing the last post I find this in today's paper.


http://www.theaustralian.com.au/bus...g-in-costa-stake/story-fn91v9q3-1227465448026
 
Re: CSS - Clean Seas Tuna

I definitely agree about the potential of CSS and the shocking management. If it did have a complete change of management, with the new team being as good as TGR's (just as an example), it could be brilliant. I wouldn't be keen to jump on board with anything run by the current team though.
 
Re: CSS - Clean Seas Tuna

The Annual report is quite hard to decipher it seems to be a myriad of smoke and mirrors. I don’t know if anybody else can see through the mist at what is actually going on but any input would be appreciated. They have managed to turn a profit for a change but have failed to meet production targets and, now, seem to have abandoned any projections for the future, which is probably a good thing as they are serial failures at meeting targets. They do mention the desire to achieve 3000tpa sales but I am unsure as to how or when this will be achieved they advise over “ subsequent years” which could mean anything 1,2, 3…5…10 yrs ?
My impression of CSS has always been one of a “rudderless ship”.....nothing seems to have changed and I am not at all surprised that the CEO is leaving ( shown the door ? ). They are waxing lyrical about his contribution but I am not convinced he is the wunderkind they seem to think he is. In any case, it is not a good look when the CEO who apparently has a great vision and plan for the company, decides to leave on the cusp of transformation.
Despite what I consider to be a disappointing report, the underlying dynamics remain solid i.e. increasing demand , low mortality, increased growth rates , diversifying product range, exploring new markets, low AUD, unique product with little or no competition.
With a little luck CSS will find a CEO who can grow the company to it’s full potential…..my greatest hope though, is a takeover by a well managed and credentialed aquaculture company/investor.

Disc - I will maintain a hold on CSS and await further developments. Opinion only.DYOR.
 
Re: CSS - Clean Seas Tuna

Reading through yesterday’s analyst presentation there is cause for optimism, if the commentary can be believed. They are achieving record low mortality rates whilst achieving increased biomass. This is a compelling dynamic for any company involved in the propagation and farming of live animals and, indeed, is an essential ingredient for sustained profitability.
Another significant positive is news of the first shipment to China during September. The potential for this to materially affect the value of CSS should not be overlooked. I travel to Japan regularly, China occasionally, and there are two themes that keep ringing in my ears. The Japanese complain about China’s insatiable appetite for sushi and how it is affecting their supplies of quality product at a reasonable price, whilst Chinese vendors complain about the lack of reliable supply of quality product. Either way, the demand potential for Hiramasa kingfish could redefine CSS as a truly global scale producer of YTK.


Disc – Invested in CSS ( will consider accumulating more if recent price weakness is sustained ), Opinion only. DYOR.
 
Re: CSS - Clean Seas Tuna

I have attached a quote from legendary investor Carl Icahn from an article on the front page of today’s SMH. He is very bearish on the world economy and, in particular, Australia. He does, however, single out agriculture ( presumably also aquaculture ) as a bright spot in Australia’s future. I have not posted the full article but it is worth a read.

Quote:

“For Australia, the end of the China-led commodities boom does not spell an end to China-led export growth. Agriculture represents a huge opportunity, as do services and education, while China's need for commodities will never be modest.”


For full article follow link:

http://www.smh.com.au/comment/a-glo...h-us-down-the-wrong-path-20151002-gjzuu8.html



Disc – Invested in MGC, AAC, CGC, WBA, TGR, HUO and CSS
 
Re: CSS - Clean Seas Tuna



30 October 2015

SEPTEMBER QUARTER CASH FLOW REPORT AND BUSINESS UPDATE

Clean Seas Tuna Limited (ASX: CSS) has today released the September quarter Appendix 4C. The
Board also wish to take the opportunity to provide a business update.
Sales
Sales in Q1FY16 were 322 tonnes which is 47% higher than Q1FY15 and 10% higher than Q4FY15.
These sales were mostly to the Australian and European market while sales to the USA and Asian
markets comprised 4% of the total. The Company remains focussed on substantially increasing sales
to the latter markets in FY16 while also continuing to increase sales in the Australian and European
market. Sales in October are approximately 10% higher than the Q1FY16 monthly average and our
full year FY16 sales expectation remains at 2,000 tonnes.
Production
Our Yellowtail Kingfish continue to perform very well, maintaining excellent health and historically
very high survival rates. In October we have entered the period of the year where seawater
temperatures have increased above 17 degrees Celsius and therefore the Kingfish resume strong
growth.
The first run of 2016 Year Class fingerlings were transferred to sea cages in September 2015 and the
second run will be transferred in early November. Further runs are scheduled for December and
February. The 2016 Year Class are performing very well to date and our Hatchery facility continues
to reliably produce high quality fingerlings.
R&D Tax Incentive Cash Refund
The FY15 statutory accounts included $4.6 million as the estimated cash refund to be received in
FY16 attributable to FY15 R&D activities. As noted in our AGM Presentation, following completion of
the required documentation this cash refund is now expected to be $6.0 million, which is expected
to be received during Q2FY16.
Outlook
We refer to our 14 October 2015 AGM Presentation which provided details of our plans, priorities
and expectations in FY16 and beyond. We remain particularly focussed on our sales expansion
strategy via market development and product development and the challenges associated with reentering
the USA and Asian markets. We look forward to providing further updates on these
initiatives as the year progresses.
 
Re: CSS - Clean Seas Tuna

Yes, tks for that Nizora. It is encouraging that sales are increasing and that the US / Asia market is only a minor contributor, at this stage. The real explosion of growth will occur when these markets start to ramp up. Either way, I am comfortable with the dynamics of CSS, except their weak Management and Marketing credentials. I expect this to change over the next 12 months with a new CEO and increasing demand profile for it's YTK.

Disc - Opinion only. invested in CSS ( holding increased since Sept 25th post ). DYOR.
 
Re: CSS - Clean Seas Tuna

Sales Update and Earnings Guidance 7 December 2015
Sales volume for FY15 was 1,098 tonnes, up 92% from FY14, with market guidance for FY16 being for
a further material increase to approximately 2,000 tonnes. Sales to 30 November of 594 tonnes have
increased by 45% over sales for the corresponding period to 30 November 2014 and month on
month increased market penetration is encouraging. Full year guidance of approximately 2,000
tonnes remains our expectation.
Average farmgate sales prices have held well in the year to date. Sales growth has continued in the
Australian and European markets and Clean Seas is developing new fresh and frozen products
targeted at food service and retail markets to take advantage of the company’s continuing strong
production performance.
The cost of re-entry to the US and Asian markets for prime grade sashimi product, together with the
development costs and introductory pricing incentives for new products in our domestic and export
markets, has however been more significant than anticipated.
Overall, the Strategic Sales & Marketing Plan requires up to $4 million in additional costs and the
Board has resolved that it would be prudent to provide for these costs in the fish valuation as at 31
December 2015. Clean Seas advises that it anticipates reporting a pre-tax loss for H1FY16 in the
order of $7 million compared to a loss of $0.7 million in H1FY15, with the increased loss mainly
attributable to the $4 million valuation adjustment. Profitable trading for H2FY16 is anticipated, due
to the seasonality of Clean Seas’ earnings, with the majority of annual fish growth occurring in H2
due to higher average seawater temperatures.
Company Liquidity
Clean Seas confirms that it has adequate cash reserves and banking facilities in place to meet its
operating requirements for the FY16 year. The company’s cash position has improved materially
since the release of Appendix 4C Cash Flow Report to 30 September 2015. The company confirms
that it has received $6.031 million from its FY15 R&D Tax Incentive refund. The refund is $1.418
million more than was anticipated as at 30 June 2015 and the cash generated from this R&D
incentive will materially assist the funding of the company’s Strategic Sales & Marketing Plan
described above.
 
Re: CSS - Clean Seas Tuna

This is one for the expert swing traders because it does oscillate round that 5c but basically goes nowhere.
I managed to grab a small profit out of it once but wouldn't try my luck again.
 
Re: CSS - Clean Seas Tuna

I have just returned from another trip to Japan and have some exiting news on a new development in tuna farming in Japan. After enjoying some Kindai Marguro ( Japanese farmed Bluefin Tuna ) at Tsukji fish market I was made aware of another high quality " o toro" farmed tuna which is derived from Suma ( Mackeral Tuna ). The taste and quality of this new form of farmed tuna is taking Japan by storm. For those who don't know Mac Tuna is far more prolific and much smaller than BFT at around 5-15kg. They are much easier and cheaper to farm than BFT. Additionally, they are far more robust and hardy than BFT. This is a sensational development when you consider that Kinki have been able to replicate the finest quality Tuna , usually found in a BFT of at least 250kg, from an abundant species of Tuna that is only 10kg.
I am not sure if CSS is still "asleep at the wheel" struggling with 200kg plus BFT but they should be looking at this new development with Mac tuna as I am of a view that this will make BFT obsolete. I have not been able to determine if Suma are easier to breed but wouldn't be surprised if it is.
I will keep you updated with any new information on this exiting new development in the farming of Tuna.

Disc - Opinion only, Invested in CSS, HUO, TGR, MGC, CGC, AAC and WBA. DYOR
 
Re: CSS - Clean Seas Tuna


Interesting, we sometimes catch the Mack Tuna up here when fishing for the Northern Long Tail Blue Fin Tuna and they are a rubbish fish in comparison! The long tails only grow to about 10kg, unlike the BFT, and the Mack Tuna I have only seen to about 5kg.

I wonder if its the same fish or not? I have some Japanese friends so maybe they can shed some light on it.
 
Re: CSS - Clean Seas Tuna

29 January 2016
DECEMBER QUARTER CASH FLOW REPORT AND COMMENTARY
Clean Seas Tuna Limited (ASX: CSS) has today released the December quarter Appendix 4C.
Sales
Sales in H1FY16 were 748 tonnes which is 46% higher than the 511 tonnes in H1FY15. These sales
were mostly to the Australian and European market while sales to the USA and Asian markets
comprised 4% of the total. The Company remains focussed on substantially increasing sales to the
latter markets in H2FY16 and beyond while also continuing to increase sales in the Australian and
European market, which have demonstrated pleasing growth to date in FY16.
Production
Our Yellowtail Kingfish continue to perform very well, maintaining excellent health and historically
high survival rates. Growth has been in line with expectation during the seasonal increase in
seawater temperatures. The seasonal fluctuation in seawater temperatures causes the majority of
annual fish growth to occur in the second half of the financial year. Total biomass at 31 December
2015 was 2,160 tonnes which is 37% higher than the 1,578 tonnes at 31 December 2014.
The first three runs of 2016 Year Class (YC16) fingerlings have now been transferred to sea cages and
the fourth and final run had commenced in the Hatchery at 31 December and are scheduled for
transfer to sea cages in February 2016.
R&D Tax Incentive Cash Refund and Cash Position
The FY15 R&D Tax Incentive Refund of $6.0 million was received in November 2015 and is reflected
in the Q2FY16 Cash Flow Report. At 31 December the cash balance was $0.4 million with the $7.0
million Working Capital Facility completely undrawn.
David Head – Managing Director and Chief Executive Officer
As announced on 7 December 2015, David Head commenced as Managing Director and CEO on 28
January 2016. The Board again records its thanks to Craig Foster for the significant improvements
achieved in the business during his period as CEO and looks forward to the next stage of strategic
development with David Head.
Half-Year Results
The company is on schedule to release its half-year results in the last week of February.
 
Re: CSS - Clean Seas Tuna

Once again, serial offenders when it comes to spin and disappointment. They can try to gloss over the results as much as they like but they have not delivered on long held and regularly amended production and profit targets.
This profit season is making it very easy for me to rebalance my food sector portfolio with HUO and CSS maintaining a consistency of underperformance. I should have known better having followed this company for a number of years but I intend exiting for good this time as I would end writing the same commentary about CSS in 10 years time. This company is, and always has been, a value trap for investors.

Disc - Invested in CSS ( have a strong sell bias and will exit forthwith ) and TGR , MGC , CGC, WBA and AAC in the food sector.
 
Re: CSS - Clean Seas Tuna

Cautiously optimistic sale reports suggest Kingfish is the new success story.
Going by recent market action, which is highlighted by reduced supply, the worm may be just about to turn. On the Weekly chart, this week's candle suggests indeed a breakout from several months of consolidation:



I have started to buy the dips; Speccie Rules and tight stops.

 
Re: CSS - Clean Seas Tuna

29 July 2016
CLEAN SEAS REPORTS POSITIVE OPERATING CASH FLOW IN Q4FY16
Clean Seas Tuna Limited (ASX: CSS) has today released its cash flow report for Q4FY16 and is pleased
to advise that it recorded positive Net Operating Cash Flow and positive Total Operating and
Investing Cash Flow for the quarter.
The Board notes that significant updates have been released on 4 and 5 July 2016 in relation to;
• Achieving just over 2,000 tonnes of sales in FY16
• Entering a distribution arrangement for China, Hong Kong and South Korea
• Receipt of the Independent Expert Forensic Accountant’s Report in relation to the litigation
with feed supplier Gibson’s Limited (trading as Skretting Australia). Gibson’s Limited is
defending the proceedings and has denied all liability to the Group.
Further commentary will be provided in late August with the release of the FY16 results.
 
Re: CSS - Clean Seas Tuna

Wow, this fish must be very hungry, another capital raising:

24 October 2016
Request For Trading Halt and Voluntary Suspension –
Reason For Request: The Company intends to make an announcement in relation to a proposed
capital raising
 
Re: CSS - Clean Seas Tuna

Hi nizora. Yes another CR has come and gone. One issue i do not understand based on the available docs is.
Hagen and David obtained SH approval so they can purchase more shares than the $15k that others were allowed to (at the fixed 33.5c). But reading Friday's 3Y it says Hagen and David bought only the $15k.
 
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