I was in and out of this when it went on its sp run. Looks pretty attractive again given where the price has fallen back to. The cap raise was done to grow the fish stock which takes feed, that's expensed not capitalised, so I'd expect it drag on cashflow. The main growing period is over summer so expect cashflow to tick up in q4.
I will have a re-read I assumed incorrectly the capital raising for the new facility. Cheers for pointing at that out. I am home next week so will have another read.
At around the 10 min mark Head explains that the marketing role out is about 3 months behind due to a change of the head of sales. Also that it was "bigger job than we thought it would be" with a marketing team is 1 person (poor audio quality). With new Aussie entrants to the market surely there will be a first mover advantage here and the Sales and Marketing team need to smashing down doors to take advantage of this. Not sure why they have a team of 1?
it is actually a good buy or it means nothing?
Its been a rough few years for CSS, whether they can transform the business into a profitable and sustainable business is the main question you have to ask yourself.
So don't try and second guess what others motivations may be just come to my own conclusion.
If there has been strong insider buying then that can inform your analysis, I would want a bit more substance than that to make me a buyer of the business!
Maybe it's just me, it's probably is just me... but I find the way CSS recognise its revenue to be quite... erm... fishy.
For one, can you really recognise as revenue the weight gained your fishes have gained? They're not sold yet, they're stillin their cages so why are they booked as revenue? Or put in a column where when you sum them up they're practically seen as revenue.
And assuming they're all sold and spoken for so it's totally legit to book them as revenue... WHY then are the gain also booked as your current asset?
I mean, if they're sold to someone else, they're no longer yours right?
If you hold this stock, you should really investigate. Its historical performance have been pretty bad for investors. Unless there's some miracle coming up... without continued support from shareholders i.e. continued capital injection... it's a gonner soon.
btw, I don't hold any shorts or have any interest in its competitors etc.
Community service
Luu, loving those charts!
I reckon the thing is a gonner now, they just did a 1 for 20 share Consolidation announced 3/12/2018 on the ASX.
WEALTH WARNING: This stock has been subject to a share Consolidation in the past and may at some time in the future cause you to lose all your invested capital. Better value elsewhere.
Yea, it's going to be pretty tough. Winter is coming.
The banks haven't really lent them any money since, from memory, around 2012? Beside a couple million pegged against their assets for leases... the bankers used to lent tens, twentys million for them to take over the world. Practically none past few years.
So it'll be up to the shareholders and gov't grants and subsidies. Failing that, game over.
I am guessing they may have some major investor who will hop in now they have done the share Consolidation. Problem is they have vanquished their whole supporting stockholder base, so there will be no-one to hold this stock up into the future. I will be astounded if it doesn't end up flat lining eventually, or just pack up their fishing rods and go away. Interesting to see.
There is no doubt that CSS have burnt through a lot of cash.
But what the company is doing now is vastly different to what they were doing previously.
They are not researching/testing/experimenting with Blue Fin Tuna or learning how to grow King Fish.
After an issue with feed which is currently working its way through the courts and may result in a substantial payout, it looks likes CSS have FINALLY figured out how to grow and process fish efficiently.
So while the numbers are terrible, I am not so sure it is a true reflection of where CSS is now.
CSS are a specy company who have a product they can produce and a plan on how to sell it. I am not convinced on marketing to only high end chefs, but what do I know about trying to get a new fish into Asia.
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