They are doing a roadshow for the SPP which is a bit weird, especially since they have already raised from instos. Cant complain about getting more info though.
Printable View
I went to todays Auckland presentation, a very well run presentation fronted by Ross Keely and overseen by Tim Preston ex ASB. From the info provided I would say that SEA is on the right track but real traction will start once the new facilities are up and running, latest results will be provided March which will give direction and from what can be gleened they will be inline with expectations ( good ).
Once the new facilities are up and running and teething issues are sorted we should have a good future and prospective sales will be built on for a product that is widely accepted especially in Japan that has a appetite for daily supplements.
The end game was as explained for a take out from a big overseas pharma company in 6-8 years at 5-6 xs the todays sp and to that end this will not be a yield company. Instos have supported the recent cap raising very well and so far the SPP has gone well, IMHO all looks good for a successful uptake of the SPP.
All questions were answered very well and fully to the satisfaction of those there some 50 + interested parties including a press reporter so there should be something shortly in the press or radio.
Thanks whatsup...can't ask for more than that. Curious to know who the new landlord will be, is it 'in house'?
Thanks - was anythign meantioned about gettins supply of the raw prodcut. There were some on this Forum that questioned whether they could get sufficient for the new plant.
Snrs.
Good. Yes?
"ScienceDaily News
... from universities, journals, and other research organizations
Fish Derived Serum Omega-3 Fatty Acids Help Reduce Risk of Type 2 Diabetes
Jan. 14, 2014 — High concentrations of serum long-chain omega-3 fatty acids may help reduce the risk of type 2 diabetes, according to a University of Eastern Finland study published recently in Diabetes Care. The sources of these fatty acids are fish and fish oils."
Maybe not if you are a bloke...
http://www.cancer.org/cancer/news/om...te-cancer-risk
Snr. Noodle
no es posible!?
Noodles, At the yesterdays Seadragon meeting presentor mentioned this report which has apparently been discredited in the medical circles in the U S as being false and barking up the wrong tree, apparently there is a correct report due to be released shortly, one could phone Ross for a further update if that person was concerned.
Last day for selling today and participating in the SPP., a 18.75% return not too bad for a week imho !
Yes Whatsup, we are of the same mind on this one. I bought in at 1.8c two weeks prior to the 16 Dec cutoff, sold three days later for 2c and plan to purchase a bundle at 1.6c as a longer term investment. I'm sure that I'm not the only one. This company has good prospects...no debt, growing market demand and sales revenue (from FY12's 1.7m to FY13's 9m), only 10% gearing, diversification strategy, etc, etc.
https://www.directbroking.co.nz/Dire...spx?id=3500409
http://www.seadragon.co.nz/assets/Se...202013_web.pdf
It's on my 2014 share pick list.
BC
I am a supporter, I like the prospects, just waiting for my 500k shares to hit $1 each. Probably in about 2025
Don't forget closing date this Friday....whose in?
I'm in. Watch out though. The fine print states that if paying by Internet transfer, you must print confirmation of the Internet transfer and attach it to the application form....both of which must arrive at Computershare, AKL by 5pm Friday. I posted mine off today.
Shares are alloted 29 Jan.
sp currently trading at 2.1 which if that holds represents a 35% paper profit day 1.
BC
I think the price will fall at least to 1.8 when people look to make a quick profit.
If the funds are processed by IT on Thursday night and they have your application form, there is no way they can refuse your application just because you didn't enclose a print out of payment. The money will be in the account. All they have to do is look. This is just Computershare being lazy and wanting shareholders to do their work for them. Why Companies don't all use Link registry services beats me. They have a much more user friendly and accessable web site and are much more civil to deal with.
I have my doubts about SEA mainly their point of difference and surety of supply of raw material, and also the price after the share consolidation, which never seem to go that well, but will put some funds in, mainly on the back of Tim Preston's reputation because at this stage there isn't much more to go on.
I will drop my cheque & appl. to Computershare in Takapuna. The last time I did this, they were not sure whether they could take it and I had to remind them I had another 30mins till 5pm. Yes, Link do appear to have it over Computershare for service.
All done, went max., have receipt, can now sleep till issue......could then be some sleepless nights!
Try not to loose to much sleep this company will do fine long term. Can someone tell me why people think shares fall after a share consolidation? As this will surely happen with seadragon this year I presume.
Jas , from info spoken by the CEO at the mkt update the cons will not take place for a few years and not until a couple of good yearly financial releases so as to get the idea from S Hers that the most pressing thing on their minds is a share consolidation, by that time the s p should be around .05 or better.
Good to hear whatsup. Let's hope they stick to that. They have however been known to contradict what they say shortly after saying it as in an earlier ' we have finished selling Snakk'.
I know it was probably a tactic to get the best price but it wasn't a good look.
I'm in to the full SPP with these for two accounts. No problem without a screen shot.
Good fortune all. Here's to a successful SPP Capital raise and an eventually profitable company if they get it right.
Hopefully these shares will never be available at 1.6 cents again and I must say I was surprised they didn't come back to that after the last placement. If SPP investors don't suddenly decide they want their money out due to the current market volatility, these may do OK post SPP. Not holding my breath but will hold long term for the possible upside multiple.
Im pleasantly surprised at the strength of the S P today bearing the sell off overseas and the closing of the SPP, am I missing something ?
Don't forget that it rose to trade at 4.5c early Novemebr and only fell back to around 1.8c after the SPP at 1.6c was announced. That overhang was removed on 16 Dec (ex date), and it's risen again since.
I'm expecting some profit taking on Friday and through part of next week, then another recovery.
Trading to it...
BC
Well they raised alot under the SPP and now have oodles of cash to build the plant and meet working capital requirements. So money is no longer an issue, execution to plan, including getting the required sales is all that is required. A good position to be in as a small company - hopefully they can deliver.
Shareprice has even increased today but maybe that's because traders haven't received their allocation of take the quick profit - hopefully not too many will.
New shares are up on Computershare site....I've got 'The Clash' song.... 'Should I stay or should I go now' ringing in my head!
I see mine are there, I think I will hold and hope it clmbs back towards 4c, a chance I might double my money over next month or 2.
I'm holding a third and have just sold two thirds. Once people get holding statements I expect there will be another selloff - tomorrow and Monday...then it's buy time again.
BC
Yes, I was picking it to drop further but then it plummeted 20% in yesterday afternoon's trading...which looked a bit suspicious given that the new issue was meant to be allocated after market close...and so it was unlikely to drop another 20% today. The sell-off first thing this morning was not very aggressive which is a good sign that people see value in holding their share of the company. Support is building nicely at 1.9c - let's see if that holds once holding statements arrive in letter boxes. Me thinks it could yet drop to trade at 1.8c. Waiting in the wings.
BC
new Edison research into Seadragon. Suggests a DCF valuation of 2.7c. Can access here (after free registration and login):
http://www.edisoninvestmentresearch....pany/seadragon
I do think there is considerable upside from 2.7c though.
Great news as many had questioned ongoing supply...
10/03/2014 09:13
GENERAL
REL: 0913 HRS SeaDragon Limited
GENERAL: SEA: SeaDragon signs significant raw material supply contract
SEA: NZX and Media Release
10 March 2014
SeaDragon signs significant raw material supply contract
Agreement overcomes historical supply constraints
Australasia's largest fish-oil refiner SeaDragon (NZX: SEA) announces a new
raw material supply agreement has been signed that will underpin its
Nelson-based squalene manufacturing operations, and enable the business to
seek new market opportunities in the pharmaceutical and cosmetic sectors.
SeaDragon has entered into an unconditional agreement with Pescarias Cayon &
Garcia LDA for the supply of shark livers and shark liver oil to be landed in
August and October of this year and in January of 2015.
The shipments will deliver quantities more than sufficient to cover the
squalene production SeaDragon has budgeted for in the 2014 calendar year and
beyond. The prices SeaDragon will pay for the shipments are linked to the
squalene content of the material and are internationally competitive.
The agreement, also envisages SeaDragon acquiring further raw material from
Pescarias Cayon & Garcia in the future.
SeaDragon Chief Executive Ross Keeley said: "The agreement locks in raw
material supply for the immediate future, overcoming the shortages that have
historically constrained the growth of our squalene operations and limited
sales activity into new sectors such as cosmetics and pharmaceuticals".
"This agreement will ensure the success of the existing squalene business and
will further strengthen our position as we prepare to expand our Omega-3 fish
oil activities. Our existing shark liver refinery will now be able to be run
at full capacity for at least the next 12 - 18 months."
The high volume of squalene will also enable SeaDragon to launch an
Alkoxyglycerol product onto the market. Alkoxyglyercols are found in the
co-product when squalene is fractionated and removed from shark liver oil.
There is a growing international market for these compounds, with a variety
of proposed health benefits.
Hi ari. Yes in the above quoted post and a previous one, I did dispute that they could source their raw material in Nelson or even NZ. It is good news indeed that they have diversified their supplies. Now it will be interesting to see the landed cost of this raw material and the ongoing security and continuity of supply. If it stacks up, SeaDragon will go on my watchlist and I will do a bit more research on it. I like the business idea but the implementation of it is what will count in the end. I hope it works well.
Welcome to the forum. I am a bit like you. I am struggling to see SeaDragon as an investment as I just can't see that they have any advantage over any company that wants to do the same in many much lower cost countries. We don't even have the raw material in NZ.
Comparing shxt with clay, are we?
Big gigantic difference between Warren Buffett taking control of a public listed operating company, and over time building it up to become his investment vehicle - versus the likes of SeaDragon, TRS, Snakk etc.
*********
In 1962, Warren Buffett began buying stock in Berkshire Hathaway after noticing a pattern in the price direction of its stock whenever the company closed a mill. Eventually, Buffett acknowledged that the textile business was waning and the company's financial situation was not going to improve. In 1964, Stanton made an oral tender offer of $111⁄2 per share for the company to buy back Buffett's shares. Buffett agreed to the deal. A few weeks later, Warren Buffett received the tender offer in writing, but the tender offer was for only $113⁄8. Buffett later admitted that this lower, undercutting offer made him angry.[7] Instead of selling at the slightly lower price, Buffett decided to buy more of the stock to take control of the company and fire Stanton (which he did). However, this put Buffett in a situation where he was now majority owner of a textile business that was failing.
Buffett initially maintained Berkshire's core business of textiles, but by 1967, he was expanding into the insurance industry and other investments. Berkshire first ventured into the insurance business with the purchase of National Indemnity Company. In the late 1970s, Berkshire acquired an equity stake in the Government Employees Insurance Company (GEICO), which forms the core of its insurance operations today (and is a major source of capital for Berkshire Hathaway's other investments). In 1985, the last textile operations (Hathaway's historic core) were shut down.
In 2010, Buffett claimed that purchasing Berkshire Hathaway was the biggest investment mistake he had ever made, and claimed that it had denied him compounded investment returns of about $200 billion over the subsequent 45 years.[7] Buffett claimed that had he invested that money directly in insurance businesses instead of buying out Berkshire Hathaway (due to what he perceived as a slight by an individual), those investments would have paid off several hundredfold.
Nope ... but thanks for the history lesson Balance (btw...which biography book of Buffet's did you quote from?).
I was merely making an observation on your very generalised statement... "Wish them luck but personally will not touch any company which uses the backdoor to list on the market. They always have something to hide".
There are other reasons why a business favours a back door listing - like the immense saving in time and money and all the rest of the bullsh#t a firm needs to endure to get a public listing through the front door. No doubt you have researched SEA to the nth degree ... what do you think they have to hide?
I have read all their literature, gone to their meetings and chatted with Keeley, Preston & Co ... listened to them being questioned by very seasoned investors and they have been very transparent with their answers and never ducked any questions etc. One thing is for sure, they know their business well and they are very excited at what lays ahead for them. At their latest presentation, the biggest shareholder concern was the amount of shares on offer and whether (when?) they would be doing a reverse split.
So, with Buffett becoming successful by a succession of acquistions....maybe Keeley, Preston & Co are looking to do the same ... maybe Sealord (to stay core) - or maybe even looking to get out of core business and getting into something else .....retirement villages for example????
In my humblest of opinions, I think they will stay with their knitting and I am glad they saved heaps of $$$$ by listing through the back door (Preston's knowledge used here no doubt). They have been in the game a long time and they have a lot going for them.
Balance, I don't think you can compare SEA's business with SNK's - they both listed through the back door...but that's where the comparison ends I think.
Same parentage.
Bad genes.
Look at the history of the failed backdoor listings using the shell which is now SeaDragon - one after another with a few making serious money and investors losing just about all.
http://www.sharetrader.co.nz/showthr...&highlight=cer
http://www.sharetrader.co.nz/showthr...&highlight=cer
If you are a respectable good company which can stand scrutiny, why backdoor list using such a miserable excuse of a vehicle?
As for your comment : "all the rest of the bullsh#t a firm needs to endure to get a public listing through the front door" - that bullsh#t is the financial projections, business strategy, management profiles, risk profiling etc which all go into making a case for investors to trust their funds with the company seeking IPO. Precisely the sort of bullsh#t a backdoor listing company shy away from - guess why?
I didn't mean that sort of Bullsh@t Balance ... I meant all the red tape that essentially just puts $$$$ into investment banks' pockets (& associated hangers on of course) - all at the shareholder's cost.
As for what you see as bullsh#t ... the financial projections, strategy & management profiles etc... you can find all that here... http://www.seadragon.co.nz/investors.html
And, unlike some front listed companies, SEA even have an analyst research company that has taken the time to give their views... http://www.seadragon.co.nz/assets/Se...eport-2013.pdf
Drop the myopia around back door listed companies.... they are not all suspicious and some even invite & welcome the scrutiny.
SEA has demonstrated an increasing amount of support at 1.8c these past few days (even when the NASDAQ was falling). Someone's buying.
Discl: holding...and happy to do so. I like their product and am quite satisfied with what I've seen of their management strategy.
My point was simply about Balance's obsession around companies that dare to list through the back door ... and the different reasons why they do it ... not the financial results or forecasts. Balance seems to have this view that any company who lists through the back door are nothing more than sh#t. Whilst posters are entitled to their opinion, I get a little tired of seeing them saturate a thread with their own relentless "hatred" (so to speak) of a particular stock or a particular Director or CEO etc ...taking it upon themselves to be the sharetrader policemen or whatever. The simple answer is .... if you don't like stock - FOR WHATEVER REASON - don't buy it!
Are you trying to insinuate that only those who support a stock are allowed to comment on the stock/company?
It will be a cold day in hell when that happens, my dear Dentie because that's exactly the attitude which allowed the scam artists like Plus SMS, Blue Chip Financial Services, Bridgecorp, Nathans Finance, Lombard Finance etc to flourish for a time. There are investors who committed suicide as a consequence of these crooks - because too many were cowed by their legal threats etc.
Trutivity makes an absolutely valid point - window dressing financial results falls into the realm of deceiving behavior imo - why would a self-respecting company operating above board want to do something like that?
I guess the fact that they did a backdoor list tells you a lot, if you care to look more closely.
Good catch, Trutivity.
Here is an example of what is in my previous post...
Are you saying "unpaid for" research done by the likes of Morningstar, Forsyth Barr & others should be relied upon for making an investment decision?
Whether it's paid for or not by the "Client Company", how long do you think Edison (& other research companies) would stay in business if their research was inaccurate or subjective?
SEA shares are currently below 2c. The trading results for the first 6 months (Sep 13) actually seems to show a $219k net profit on $2m sales. I could be wrong though.
As an investor, I'm happier with this result - than with the like of XRO's result - who's current share price has dropped like a stone (and rightly so!) from a ridiculous $45 on a trading result of $17m loss on $30m sales for the same period.
Still missing the point Balance .... so I'll write it slowly ... you decimated the SNK thread because you went on and on and on and on and on and on and on and on ...(get the picture) ...and on and on and on repetitively until most people left because they obviously got sick of reading your same obsessive stuff about how they (SNK) dared to list through the back door. I got your point after the second or third post you made on the same subject.
Feel free to post until your heart's content - just please try and refrain from attacking these companies with the same repetitive and echoing diatribe. We get it....you don't like firms who list in this way. Or better still, instead of using the threads to vent your spleen, why not contact the Company's concerned and the NZX itself and demand this nasty type of listing stops? Most people who dare to get involved in commerce get burned at some point in their lives...that is the way of our world today. The clever ones learn from that ....
I'm not trying to insinuate anything and I'm not trying to shore up anything either...but yes, I am a holder of SEA. I am not a trader either...long term only for me.
As I mentioned back along...the main shareholder contention is around the number of shares on issue and at the last meeting I brought it up with Tim Preston. He acknowledged this but said they are not too worried about this at the moment - although they may probably look at a reverse split a little bit later on.
In respect to capital raising, they have not long completed a round of this and were well oversubscribed. They have ample funds to do what they want at this stage. Their new purpose built factory is on target and demand for their product outstrips supply.
Why be enlightened by others? Why not enlighten yourself and take the time to do your own research - or "DYOR" ... as so many say on sharetrader?.
I see SEA as a growth stock - just as I saw PEB was when I invested 6 or 7 years ago. Difference is, I don't think I am going to have to wait 7 years to start getting a yield off SEA.
It's irrelevant the level the shares are trading at - what is it trading at relative to its fundamental value? TRS was trading at under 2c too but those who bought at 1.9c are probably wondering how they were sucked in?
Meanwhile, I question your interpretation and ability to interpret or analyze Sea accounts if you think the trading results actually show a $219k profit.
Fact is that Sea made an operating loss of $582,000 - hardly the sharp turnaround from $211,000 loss from the pcp!
Did you actually analyze the results or did you simply take the company's announcement at face value?
Meanwhile, XRO has gone from $12.35 a year ago to $29.00 - 135% gain, while Sea has gone backwards.
Your sense of happiness may need adjusting? :D
gross profit margin's improving;
high G&A expense due to listing? (what they said)
can't work out how they get 250 mil earn out shares in FY 2013.
we will see how FY results looks like soon.
Balance, Trutivity etc ...
DYOR by its very nature suggests everyone is researching points and events important to themselves. That is where any share's liquidity comes from. If we all believed in what a few say - the markets would no longer be efficient.
On the information available, I am happy with my own research in SEA.... including the trading results. I am not getting into a "mine is bigger than yours" argument, but thanks for the invitation anyway. I'm a long term investor so I'll wait for this pudding to be cooked first and, good luck to you in the meantime....whilst you look for somewhere else to put your dosh.
As for XRO - they have lost 35% in about the last month. If I just looked at the last 12 month gain - looking to get in now - without taking the last month's trading into account - well, what a gamble that would be. With the growing loss they have made, their cash being provided by Thiel and Co (ie NOT the broader market) and the recent problem....http://www.theage.com.au/small-busin...417-36u7a.html it would be an even bigger gamble. I would suggest the price is dropping because the market is waking up and valuing it at today's trading performance - not what it will be doing after it conquers the US market.....which from what I am reading may be a harder quest to achieve than first thought.
Sorry - not trying to hijack thread.
[QUOTE=Dentie;476143] If we all believed in what a few say - the markets would no longer be efficient. /QUOTE]
Exactly! So far we have seen many believe what a few say - the company's spin and PR, and contradictory statements one PR release to the other.
The company's strategy seems to be one big WIP - as evidenced by this priceless piece in their last investor update :
Thinking ahead:
SeaDragon’s board
meets over strategy
in Auckland
“What’s next?” That was the question
occupying the SeaDragon Board
as it met in Auckland last month to
contemplate the future of the business
following the completion of the new
refined fish oil plant.
The board considered plans to secure
raw materials, new staff, the timing of
contracts for production from the new
plant as well as the potential of longer
term initiatives such as the development
of a brand for consumer products.
What next? Maybe try the front door for a change? :D
https://www.youtube.com/watch?v=UF8uR6Z6KLc
"Your time is limited, so don't waste it by living somebody else's life".
Same as working damn hard and giving your money to those who are already filthy rich but knows how to extract the money from you.
Be careful.
Given the passion of you lot against SEA & SNK and anyone else that doesn't fit with your criteria and superior knowledge etc etc etc .... why are you jockeying on the sharetrader forum to see who's got the biggest one? I think you owe it to the investing community to register your concerns with the FMA. They are there to sort out the likes of SEA and SNK as they appear to administer the securities types of Acts.
I see that the thread went down-hill over the long weekend :D.
This is in the too illiquid basket for me to be owning any but I did choose it for the contest last year so have a soft spot for it :).
Anyway a couple of matters arising for you lot who would rather make sweeping guesses and then complain about the company rather than do a little basic research.
The 250m earn out shares have NOTHING AT ALL to do with the revaluation of the Snakk holding but are related only to the performance of the bought oil refining business (Annual General Meeting Presentation).
There are potentially another (and final) 250m earn out shares to be issued this year if the performance threshold is again met.
The accounting treatment of the Snakk sales / holding re-evaluation is, I believe, the correct way to approach this and not an attempt to hide anything. It is consistent between reports. Looks weird I know.
[Accountants do like things to be too straight-forward otherwise we would realise that any idiot with a spreadsheet could do their job :p].
Best Wishes
Paper Tiger
Read 2013 Annual Report page 16 and 2013 Annual Meeting Presentation slide 38
Yes, seems to be have been very uneven in their ability to get stuff to process. Maybe the future looks better with the recent supply announcements.
The iceman seems pretty clued up on this sort of thing.
OK - for every company there is the consolidated statement of comprehensive income which can be divided into two parts, the profit and loss bit up top and then the other comprehensive income beneath.
SEA is rather unusual (but not after this FY) in that the bottom has dwarfed the top in size and comprises of the movement in the current value of their investment in that other much maligned company SNK.
SEA correctly reported that the value of their SNK holding went up $3M65 at last full year.
SEA correctly reported that the value of their SNK holding went down by $2M69 at this half year.
Both appeared as other comprehensive income.
SEA also reported a profit of $810K on the SNK shares they sold (they bought them for a tenth of the price they sold them for).
Best you get your head round all this sort of stuff, go learn.
Best Wishes
Paper Tiger
in 2013 FY report, SDMO business only, I can't work out >$1mil of NPBTDA, for them to get earn out shares.
I just emailed their acting CFO, hope he will tell me how, I should ask him before.
[QUOTE=bobbells;476705]
You seem to be confusing sales decline/failure with processing issues. Often the two are unrelated. In any case, how can they not get stuff to process? Everywhere you turn in their releases they tell you they are about to cut a swathe through the US$30b omega-3 market. Yes, that's right, there's US$30b equivalent of raw materials out there. Everyone else is jamming their plant full of the stuff ... Mr magoo could find it. "
Bobbells where do you get that figure from ? My experience is that Omega 3 fish oil demand is very high and supply is not likely to go much higher than it currently is, due to most fish oil producing fisheries being fully utilised. This is keeping prices high for raw material for the likes of SeaDragon.
According to some industry information, the worldwide market for human use Omega 3 fish oil PRODUCTS is estimated to reach around 25.5 B Euro in 2016, up from 18.9 B Euro in 2011. Very different from your claim highlighted above !
I suspect he may have asked this lady to find it...
http://m.youtube.com/watch?v=u8QGAJjGQbM
Confucious say "very unwise to grab a tiger by the tail"
Nothing unwitting about it. I have been saying consistently since I started following this thread that I think supply is the biggest risk to SeaDragon and I remain of that view. The industry is actually talking about "fish oil supply crisis" http://www.nutraingredients.com/Indu...ce-hike-at-DSM
True and untrue at the same time. Yes there is plenty of fish waste, as there are many fish filleted onboard vessels and the other stuff is wasted (as in not used for anything else). At recent shareholder meetings, Keeley acknowledged at only fairly recently are the fishing companies/vessels , ie Talleys, Sealord, becoming aware there is value in the fish organs. So now they have gotten a more secure supply of fish livers (primarily Hoki) etc as commercial fisherpeople in NZ have realised value in otherwise garbage.
Also you blabber on about IP... I understand value add... but what does ?intellectual property? have anything to do here?
Thanks for offending the population of people who actually bother to attend shareholder meetings - as if it is somewhat unusual to do so... Also I wouldn't bother responding about my IQ, cause I'm confident enough about it and don't feel the need to prove it. Same goes to whether I actually work at Macca's or not.
I ask that question because clearly from your explanation, intellectual property wasn't really what you were referring to. You are referring to product differentiation, which IP might or might not contribute to - but are different concepts altogether.
Symantics aside, does Seadragon command any sort of product differentiation? Well depends on whether you want to believe it or not.
1. Balance noted above somewhere that there's a NZ clean green factor. Is this significant? Who knows. There might be an impression that NZ waters are not as polluted as waters elsewhere, leading to a lower concentration of heavy metals... I won't linger here, because I personally don't think it's that significant - but then again what is the reason why China likes NZ milk powder?
2. Sustainable fisheries. With a big environmental-sustainability push in people's mindset these days: perhaps this matters. The Hoki and Tuna catches that is used by Seadragon is certified by the Marine Stewardship Council as sustainable catches - it is said that no country has achieved such certification for 3 years in a row for which NZ has.
3. The majority of omega 3 that is produced by Seadragon is from hoki. Most of the omega 3 oils elsewhere are made from anchovies (from memory), which inherently is darker in colour - hoki oil is much lighter which is desired. Another point of differentiation.
I'm not sure I've convinced you of differentiation. But one only needs to go to the supermarket isles to see that a similarly sized bottle of Coca Cola sells for more than a bottle of Pepsi cola - they are inherently the same product, but differences are perceived rather than real.
In any case, differentiation of the oil is only one aspect of analyses. At the moment, Seadragon does not sell its oil to final consumers (other than to staff and shareholders) - but will in the future under its own brand. The value add (excl costs of going about adding value) seem quite attractive as you move down the chain. I will not put it on record here because I do not have perfect recall, and I don't think is mentioned anywhere to prove definitively. Again you might think I'm making this up - so be it.
The other thing is that the fish oils don't all go into pills or fortified food. There is also a substantial market in the form of cosmetics.
And regarding gullibility... well unless there is real reason to doubt it, there's no reason not to believe it. It doesn't seem all that implausible to me that commercial fishermen discard their waste. Although valuable to Seadragon, this waste is worth little to the fishing companies and hardly 'hidden gold'. I don't believe the raw material costs Seadragon all that much to buy given the value it generates - though I cannot substantiate this. When you finish eating a banana, you're going to chuck the banana skin away - despite the fact that you could potentially 'sell' it to someone who uses it to make fertiliser... not an overly implausible scenario. Anyway, the situation regarding raw materials is getting better as these fishermen are aware there's value in it.
OR maybe I'm just overly gullible and naive.
There appear to be a couple of new members to Sharetrader posting on this thread in rather a personally abusive manner. Please stick to the issues and refrain from personal abuse. Most of us are interested in divergent views and welcome them.