Something is getting fishy on this company
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Balance - It looks like what they were hoping would be their first commercial run was not successful, thats been fixed so they have now their first "successful" commercial production run. other than being a bit overly optimistic, I dont think this is quite a big a deal as you are making out.
Ahhhh....finally - some objective level headedness!! I agree Harvey. If the two subject announcements were read properly and, in their entirety with the big picture in mind, it is no big deal. But, as per usual, the sensationalist and convenient type of "selective" quotes were nothing more than mischievous by those that should know better. It is clear SEA is a long term play (which, IMVHO, is where the real returns will be) and those trying to trade on "tenths of a cent" do so at their own risk.
I can tell you Comvita's CEO doesn't seem at all worried...judging by what I read over the weekend! In fact, a quote from Mr Coulter was "There's no reason why we can't replicate the manuka honey story with fish oil".
I think SEA needs to do what SNK did and conduct a huge reverse split. The sooner they get it out of the way the better!
No big deal but for the fact that the announcement of commercial production was price sensitive, and the company was caught out and had to admit that the plant was actually not in commercial production.
Then we have directors selling because they breached takeover threshold - but again, all quiet until the company was placed under scrutiny.
Goes to the heart of management integrity in keeping the market informed.
Quick with the 'good' news releases but very slow and reluctant to keep the market otherwise well informed, unless caught out.
Re the commercial run, not a biggy and they weren't far off based on the recent announcement (I assume if it wasn't xmas, it would have been done sooner).
Re the Director sales, they are muppets. Someone should have been looking after this. Probably the CFO's fault but he could probably pass some blame onto which ever advisor they were using too. You cant really pass blame though so ultimately the Directors are at fault as they should have been aware of how much they were allowed to buy in all situations.
Don't you like the blatant sp manipulation almost everyday on SEA?
$560 to make the price close 0.1c higher.
Some sucker may pay up tomorrow, see?
It's actually volume of 560k for $7k.
Yeah fair call. I just looked at the volume of 560k on watch list rather than clicking on detail and thought a mistake on $ vs volume was made as they are both 560, with what you are referring to. Obviously not paying as much attention as some to this one.
Interesting - there are now only 657,000 on the bid at 1.3c and 20.8m on the offer at 1.4c and 1.5c.
Sellers are moving down a notch and the big volume on the bid side has disappeared.
Will the next bit of news be what has been alerted to by Apathy - an official mel-culpa that forecasts are not going to be met?
https://www.nzx.com/companies/SEA/announcements/278609
Sell down by director(s) continues.
Director or Senior Manager. What exactly is his roll now? Companies Office shows he ceased as Director last Sept.
If I'm not mistaken, Keeley is a FORMER director, not a director.
And he has sold approximately 4 percent of his shareholding, for a paltry $2,800. Is that really a significant event? What is it supposed to signify, apart from the fact that ne needed a coupla thou in a hurry?
That's right guys, Ross is a "Former Director" - which means he is effectively on the same level as the rest of us....just a normal shareholder.
So Balance, all he was doing was selling a few shares....just like you did not too long ago. The difference is, I suspect he made more of a gain than you did!
I wish you would stop being so mischievous in your comments.
"Both Mr Keeley and Mr Macintosh have confirmed their on-going commitment to SeaDragon and they have advised that they will both retain ownership interests in SeaDragon following these share sales". 26 Jan 2016
I like to keep track of what directors, management and insiders do. Have served me very very well over the decades.
A few examples :
THL - been up and up since directors and management bought. See some more buying in recent times.
SCL - likewise.
PEB, Snakk, PPL - down down down after directors and management sold.
https://www.nzx.com/companies/SEA/announcements/278675
And more share sales - come and get 'em, boys!
Gee, if I had the dosh, I would approach Ross and do a "one-off" off market transfer.
At this rate, he'll still be here next year trying to offload them. Imagine the paper work piling up at the NZX by then....:eek2:
Update should be very soon.......could be interesting.......no idea which way to place my bet! Positive or crap - positive with some more BS - or just more BS. I'm picking expenses have rocketed with plant changes at Xmas costing more than budgeted!
Its an easy bet - will be horrific - with the usual BS - one off stock write downs, delayed commissioning, unexpected cost over runs and market down turn - maybe they can do a Fonterra and blame terrorism as well... maybe the Zika virus too...
Won't get within a $1 million of forecast which should trigger a please explain and censure from NZX and then FMA will want to look at the share disposal by directors. Chairman twice emphasised on target to hit the EBITDA surplus - if they don't even get close and directors have been selling ...... will be interesting times.
Very quiet...last news in late January was 'that the first commercial production run through its new Omega-3 factory has been completed' ....... wonder whether they produced anymore????
they are back in the news.... http://www.stuff.co.nz/nelson-mail/n...inery-incident .......
tried this a bit late to use for a year end excuse.
The trickle down effect...http://www.nzherald.co.nz/business/n...ectid=11620048
The facts about the medical importance of Omega-3 (EPA/DHA) haven't changed ....
http://circ.ahajournals.org/content/106/21/2747.full
http://www.mayoclinic.org/drugs-supp...g/hrb-20059372
Nor have the facts around increasing demand for top class medical based products. See Exhibit 3 on page 6....>>>
http://www.comvita.co.nz/_assets/Inv...ita_Report.pdf
Nor have the facts around our fish stocks...
http://www.seafoodnewzealand.org.nz/...ing-into-2015/
The obvious important benefit of having a corner shareholder who has already been successful in providing high end products to the overseas medical related market AND who already has established contacts in that market cannot be overstated.
With a consolidation of fishing company providers, I suspect SeaDragon can negotiate new (& better?) product delivery contracts with more certainty/confidence.
To coin a phrase..."Too many cooks spoil the broth" - so consolidation can be a good thing.
In the meantime, let's hope the source of last week's "overheating" in the factory was just healthy discussion around the Board table on new markets!
The only heat around the board table will be the discussion on directors liability and who has been responsible for failing to meet ongoing disclosure requirements. $18m of accumulated losses will soon be nudging $20m and it will just keep getting uglier. You can put all the lipstick and pretty dresses on this pig you want to but it still ain't going to fly.
try these ones :-
http://www.seafoodsource.com/news/su...-drop-in-sales
its been in decline for years - not that they tell you that:-
http://www.nutritionaloutlook.com/om...consumer-trust
Yeah yeah - thanks Apathy.
Rebuttal? Unfortunately, the keyboard doesn't emanate the "tone" of a word Apathy, it just produces the alphabet....hopefully creating words in an order that makes sense.
I'm not interested in opportunities to participate in "nah-nah, nah-nah, nah" moments mate. Like most others on here, I just pop down my comments and thoughts in respect to Companies that I am interested in. Whether they might prove to be correct or incorrect is irrelevant and don't really matter at the end of the day. I do admit to looking for the positive side of any situation though.
I try not to be a keyboard warrior that spends their day patrolling threads, searching for opportunities to attack Company Officers and Board members.
If your sage like comments turn out to be accurate .... Good on ya mate!
I think that is a refreshing if somewhat unusual approach - you really don't care whether what you say is correct or incorrect but will always look for the positive spin..
Actually don't have an issue with that but you can't expect to turn up and spout positives without expecting to be called on it.
For those genuinely interested the current question must be where is the new CEO??? All the existing team gone or going end of month and no announcement on replacement? Can imagine it would be very hard to fill as anyone decent would want to look at books.
Last year they published Trading update 26/3 and Investor update 1/4. Only thing this year was confirmation of first production run in new plant.......where's the news!!!!!
Yep - not even a comment on the plant evacuation. They are all sitting around trying to work out who is going to put their name to the next announcements and/or see if they can stall till they are out the door and leave it to the next poor schmuck...
"On track to meet FY 2016 EBITDA target of $144,000" November and reiterated December
"successful commissioning" January
'delay commissioning won't impact forecast'
In fairness to the likes of Dentie if you take everything at face value then if the repeated what they did in first 6 months of the year and added two months of the new wunderplant operating then things should be looking good... (though $144k EBITDA is not exactly good news given original forecasts)
My guess - won't get within a $1m of that and - unless they can package it up as audit identified write-downs or similar they will have a please explain from NZX (at a minimum) in terms of continuous disclosure.
Board meeting tomorrow.
At least they won an award - good effort in amongst the other news
https://www.nzx.com/files/attachments/234265.pdf
I am guessing that was tongue in cheek!? I just checked NZTE site - no mention of them even on a short list for an award. More fiction... https://www.nzte.govt.nz/en/how-nzte...015-finalists/
The joke continues - high stock, low cash, can't find a CEO and still planning expansion. Seriously the people that were supposed to know what they were doing and worked there couldn't get it right so who is making the decisions now on capital expansion??
Its just a smokescreen to do another capital raising for operating expenses under the guise of capital investment.
And how about this comment from the Chair to inspire shareholder confidence "Once achieved, we anticipate that additional orders will follow" seriously - 'we anticipate' !?
Doesn't go nearly far enough in terms of a market update to mitigate ongoing notice failures.
Directors selling in the last few months (which we are now advised were very soft) - dangerous territory.
Apathy - they did win an award - it was sonsored by NZTE
http://www.naturalproductsnz.org/201...wards-winners/
Even a photo
Spose worthy of noting in an announcement?
Seemed to have won something though
http://www.naturalproductsnz.org/201...wards-winners/
He He you beat me to it Winner !:)
So ebitda to be 'lower than' $140,000
Hope they allowed to capitalise those expenses they mentioned
and the other comment...."SeaDragon believes the quality of the oil produced through its new Omega-3 refinery is of a high standard".... that's the easy part, now convince everyone else!
There is a massive difference between putting out an announcement claiming you are the "NZTE exporter of the year" when the truth is you won an industry award which was sponsored by......... these guys have always been shady with the truth - nothing changes.
Would like to know how they could even be considered?? Given increase in stocks and offshore sourcing they were probably net importers (is there an award for that?) and having stuck the knife in --- exporting at a loss is hardly an award worthy occupation.
Embarrassing for all concerned.
I am sure they will have capitalised everything they possibly can and rounded it off with all sorts of wonderful 'one off write downs', non continuing losses. Soon it will be the one off restructuring costs, the exit costs from Omega 2 factory, etc etc etc
What I do give them credit for is mastering the understatement. The release when you read it carefully manages to signal...
Margin issues (Price pressure Omega 2)
Demand issues (Omega 2 and 3)
Stock issues (everything?)
Cash issues (increased stock no sales and CAPEX blow out)
CAPEX blowout ($1m)
All setting up the annual result disaster without really giving anything away,,,,,
....... But we won a prize
Despite continual dissappointing announcements, what I dont get is why a smart company like Comvita would get involved if they dont smell an opportunity? Surely after all is said and done perhaps we are seeing the birthing pains of a future flier and at these prices it could be the bargain buy of the decade. Shoot that one down Apathy, I enjoy your insights and will take into consideration any reasoning why this company is doomed before making it bigtime.
It is hard to fathom but my guess is that they were prepared to accept an element of risk and struck a pretty good deal. Of course all depends on the quality of due diligence and information provided.
On the face of it - SEA are the only NZ producer of fish oil and it is obviously capital intensive so they should end up owning the market (in theory) in a country which has a very good reputation internationally.
But..... clearly they aren't efficient enough to pay the price to local producers to supply and/or there isn't enough supply and/or it is too low a quality so they are dependent on imported material - Sardine, Shark, Tuna etc. That model won't stand up - no possible way you can import to NZ refine and ship back north and be competitive.
Comvita are hungry for NZ material they can take to China - repackaged imported product isn't going to tick the box.
Comvita isn't being mentioned much at present and without going back through the releases I am pretty sure they were committed to putting more money in if targets were met. Based on today's release it is hard to believe they will have been which means should they want to put more money in they will do so at more favourable terms than last time (that weren't bad at the time)
So for the shareholders - there is probably good money to be made if you want to have a flutter. Price has held up well so I would be looking to dump and wait till actual release and the terms around next Capital raising - when it is hit next bottom grab some and get ready to dump them on the back of the next bullish press release announcing more money from Comvita.
Therein lies the next issue - the more Comvita end up owning the less attractive they become as a supplier as who wants to buy of a company largely owned by a competitor......
Its not doomed - someone will make a dollar out of it some day but it isn't going to be current shareholders.
IMHO
Bang on as usual, Apathy.
Capital raising definitely on the cards soon as the net cash position of $4.3m after the Oct successful $10m capital raising must be now down to bare minimums with capex, stock and losses all in the wrong direction.
No self respecting capable CEO is going to take on the job without the company being properly funded - it is already a hospital pass with all the missed targets, deadlines and costs overruns.
17 million shares traded in the last two days - those in the know getting out before the year end release this week....
SeaDragon raises $3.0 m from Comvita; confirms exit from Omega-2 market
Comvita convertible loan to provide liquidity as SeaDragon to focus on significant Omega-3
opportunities.
SeaDragon (NZX.SEA), New Zealand’s largest refiner and blender of high quality fish oils and
fractions, announces its cornerstone investor Comvita has agreed to advance $3 million via a
convertible loan to assist the company through its staged exit of a currently difficult Omega-2
market and gradual build-up of the Omega-3 business.
SeaDragon Chairman Colin Groves said: “Over the last 12 months SeaDragon has transformed
its business. With the completion of our new Omega-3 refinery, we have lifted the company’s
processing capacity from just over 200 tonnes to 5,000 tonnes per year.
“We now have the production capability in Omega-3 to look to firm up both supplier and
customer agreements to deliver on our strategic objectives. The new refinery is performing well,
we are steadily building Omega-3 raw material supply relationships and we are encouraged by
the response we have received from potential customers.
“As we signalled in late April, volatility in Omega-2 markets has overshadowed these
achievements, with SeaDragon experiencing an extension in the Omega-2 sales cycle, and a
build-up in inventory. This has resulted in a slower transition from that market and a run-down
of cash reserves.
“Comvita’s agreement to advance $3 million via a convertible loan allows this transition from
Omega-2 to Omega-3 to occur in a smoother way. “SeaDragon’s Board is delighted with today’s
agreement, it represents an extension of last-year’s strategic partnership, which saw Comvita
subscribe for $3 million of new shares and agree to partner with SeaDragon to add value to the
New Zealand fishing and aquaculture industries. Comvita’s continuing support is very valuable”
Mr Groves concluded.
Comvita CEO Scott Coulter said: “Omega-3 fish oils are a core ingredient platform for Comvita.
We are committed to an on-going investment to establish a unique New Zealand sourced range
of high quality fish oils and are happy to continue to partner SeaDragon to realise this
opportunity”
The convertible loan will be subject to SeaDragon shareholder approval at the annual meeting
scheduled for in August 2016. SeaDragon will update the market as soon as a date for this
meeting has been set and additional information will be provided to shareholders in advance of
that meeting.
SeaDragon expects to release its preliminary unaudited results for the year to 31st March 2016
on 30th May 2016.
For further information:
Investors:
Typically poor reporting which attempts to put more lipstick on the pig before Mondays dance..
CVT had options @.08 for $3million - had SEA hit targets they would have been compelled to exercise. The fact they haven't indicates 1) SEA missed targets (no surprise there) and 2) the terms of the convertible note must be even more favorable to CVT than the .08 !
Obviously cash burn has been horrific and it should now be of great concern they are exiting the traditional business for the pipe dream.
Motivation for 'exit' will be the ability to remodel the accounts to something more palatable.
How does CVT have to exercise its options. The fact it hasn't could be seen as a material event.
I exited today (only had 300K, so no big deal ) my thinking being
- Were supposed to announce results today (my theory being if news was good, they would be in a hurry to announce it )
- To me it was a bad signal that terms of issue of proposed notes to CVT were not disclosed (my guess is that will need to be a heavy discount factor )
https://www.nzx.com/companies/SEA/announcements/283215
Nothing inspiring here - just more excuses and no information of terms of Comvita's convertble note issue yet.
Meanwhile, note that it coast SEA nearly 10% in fees, commission etc to raise the $10m last year! Desperate stuff!
its a total (predictable) disgrace. There is no excuse - certainly not accounting systems - they could have used a pen and paper or cash register at volumes they were shipping.
Furthermore they have written off more stock than they had at half year - no doubt they will claw it back in next year as margin (same as Snakk) write it off as non continuing, hold the stock and nil value and ship it out as continuing to make the balance of the business look better.
Lots of talk about supply and production - clearly no sales. Anyone know who new CEO is??
There is no possible way this can meet any of the ongoing disclosure requirements and if it isn't investigated and dealt with then NZX is a joke.
And what are CVT thinking getting involved with this embarrassment? Surely they have a good enough business to not want to be tarnished.
Too late for Comvita - roll with pigs (even with lipsticks) and you will be covered in mud and dung.
Agree FMA and NZX need to have a look at this absolute nonsense from SEA in terms of disclosure :
27 Nov 2015 :
"Releasing its results for the six months to 30 September 2015, SeaDragon also announces it is on track to meet the forecasts given during its $10 million
capital raising earlier this year.
In July 2015, SeaDragon forecast sales for the year to 31 March 2016 would rise to $10.1 million from $6.3 million a year earlier. It also forecast
EBITDA of $144,000, reversing the prior year's EBITDA loss of $2.2 million."
30 May 2016 :
Actual sales = $5.6m (yes, $5.6m) - $4.5m below forecast. In other words, SEA sold a staggering $300,000 of products in the second half of FY16! So second half sales were 93.75% BEHIND forecast.
NO DISCLOSURE WHATSOEVER BETWEEN THE TWO DATES of how badly they were tracking against forecast. An absolute disgrace.
WOW, I agree, this is just silly stuff, to be 93% behind forecast & no prior market disclosure. (so much for an informed market )
Disc: I first purchased a few shares about a year ago, as I thought they would be a nice "bolt on acquisition" for the likes of SAN
Yes, I also ignored the negative comments by Apathy while I held my shares, "Sorry, you were right" !!
PS: Sure glad I sold earlier today ! ( Gut feeling is a wonderous thing )
Yes, thanks to Apathy - I also took notice and took my leave from this company last year.
Apathy has not only read and assessed this company correctly and accurately but is prepared to share his views and information - despite the arrows and poisonous darts thrown in his direction by some ill-informed and ignorant posters.
Thanks - it won't change the opinions and I am sure Dentie will be back to tell us that CVT aren't stupid they see the potential, its a longer ride but the fundamentals are there and if you look at the non recurring impairment it is actually a huge improvement with normalised profit $1.8m ahead of last year etc etc.
The fact is they have just announced they are exiting the only business they have ever sold anything in - thats $5.6m of revenue off next years books already.
This is the business that was constrained by supply - that they raised the money for is now non viable? In simple terms they have closed the business and reopened April 1st (appropriate) with a new plant and no sales... and if you read the release they are talking about 'interest and inquiries' not sales - so 4/5 months of fully commissioned plant and still nothing significant?
Convertible note will make interesting reading --last one was paying 18% and you can rest assured the conversion price will be market related.
Lot of shares have changed hands recently - would imagine that there will be some disgruntled purchasers and rightly so. The release of the CVT announcement was nothing short of cynical manipulation of the market prior to dropping the hammer.
Exactly, Apathy. This company makes Rakon look good!
This is what the company stated a year ago to a day : "SeaDragon's Squalene operations are in a strong position following the conclusion of new raw material supply agreements, which should see a further growth in sales. Existing customers have indicated a strong desire to enter into new agreements with increased volumes and prices. The Squalene operations performed well in the 2015 financial year despite a backdrop of intense competition for raw material supply."
So is the old plant now mothballed? New plant was going to be a nice add on.
No - they are keeping that for 'boutique lines'. Its a pretty desperate play but consistent with their track record.
No stock has been disposed of its just been heavily discounted by way of impairment. They take the big hit and put it down as exiting a business/discontinuing a line. Next year they have product that is saleable sitting undervalued that they can sell at a profit which will be shown as evidence of the 'added value/ higher margin' return from the new plant. It is exactly the game they played with the Snakk holdings - revalued it to cost(Not market) took a hit and then proceeded to sell at a profit the following year. Obviously all netted out but they manipulated the normalised numbers.
What is more incredible is that they are exiting a business that had gross margin in first half of 32% but when 'corrected' for year end was actually contributing 48%!? On what basis do you want to exit that business? and on what basis can you justify a 50% impairment!?
Talked to an industrial chemist in the beauty care industry whose firm sources raw materials like jojoba oil from South America. He said that Omega 2 and 3, derived from fish, are very unstable and prone to spoilage unless properly handled, stored and used. Beauty care companies require very high quality omega 2 to mix in with their other ingredients and all ingredients are tested for quality and content before mixing.
Wondering if SEA had to write off their Omega 2 due to spoilage? Which begs the question whether they know what they are doing!
BTW, the chemist cautioned that most of the omega 3 capsules on sale in shops have bugger all nutritional value as the omega 3 content has long been compromised by inappropriate storage and handling - heat, light etc.
yes there was a news item in January well publicised regarding and Auckland Uni study that demonstrated very little active omega 3 in the supplements sold in NZ due to degradation and instability to light and temperature. this was seen across a range of tested brands. this was suggested to occur enroute from south America and via poorly managed storage in ports etc.
discl- never owned Sea dragon shares
WOW, share price unchanged, despite yesterdays announcement.
Mr Market sure can be irrational, or maybe I need psychiatric counseling ?
Some people have a very very big incentive to make sure there isn't a collapse given timing and content of announcements... just saying...
Controvertible note actually looks reasonable - last one was 18% this is at 12% and drops to the heartland rate once approval in.
Doesn't change the fact that the conversion price stays at .8.
CVT will be happy enough though - given entry price it will still be sitting on their books well in the black. Maybe its like the jousting sticks - "tell him he's dreaming and offer them half' ... ' what do we want with jousting sticks hun?' .... ' be silly not to at half price'
Either that or Dentie is doubling down ..
It is something of a surprise, pleasantly surprising for some I'm sure. Plenty of volume on the buy side at 1.3 and a comparatively modest amount on the sell side at 1.4. Are shareholders taking a 'may as well wait and see what happens' approach now that Comvita is part of the long-term picture ?? Another 6 months of holding is probably not too much to ask, given what has been endured in recent times.
Yip. That "window dressing" starting to become expensive. VWAP 0.014 for the day.
Lifes rich tapestry - SEA firms - CVT drop 20 cents ($8m in capitalisation) clearly one group of shareholders more excited by the deal than the others.
It is pretty hard to get your head around what's happening - company was for all intents insolvent, can't get bank funding, issue convertible at almost half current price and price firms on the back of $4.9m loss (and its not like its an unusual occurrence - its never made a profit and has accumulated losses approaching $23m).
I would love to understand what the thought process behind today's buying was.
Ha ha ha...I'm starting to think you are stalking me Apathy.
I'm enjoying reading your posts from Prague during my morning coffee - after your day's trading. Have seen lots of interest in Omega 3 through Europe actually.
I am sure you know I am an investor so these short term issues are of no interest to be honest. I admit your comments may have relevance to the traders though.
Happy days are ahead......
Dear Apathy
Look at the positives (from 30/05 press release)
- Seadragon has "transformed"
- The board has been "refreshed"
- Minor technical things like "Inventory systems not being fit for purpose" have now been addressed
But to be honest, I'm stunned by today's buying !
Not sure stalking is the right word but I do genuinely miss the levity you bring to the forum - your insights are comedic genius and I always leave with spirits lifted. I mean 'investor' and ' short term issues' are just pure gold. It brings back happy memory's of John Clarke and Bryan Dawe in their heyday! https://www.youtube.com/watch?v=wETpW43WYjo
Volumes on both the buy and sell side are at elevated levels. Will be interesting to see exactly how many shares have been traded by the end of the week. would love to know who is buying, obviously. Demand for omega 3 in Asia, particularly China, is also at high levels.
I'm quoting from other sources. As is, I assume, Dentie, when he says there is plenty of interest in Europe.
" Window Dressing " A new term used by the happy ones when the share price does not plumet as they were expecting / hopeing. ;)
My pleasure Apathy old mate. Starting with your pseudonym and continuing with your unrelenting negativity based comments, I have felt concerned for your ongoing financial well-being for sometime now. It borders on being obsessive to be honest and I wonder what is driving this type of behaviour....a regretful share purchase perhaps? Your comments in respect to SEA are almost "Doomsday-ish". Serious question...do you believe SEA will be still around in say, 5 years from now?
There is absolutely no possibility they will be around in 5 years. At best they have 18 months but that is the outside. Let's be honest if not for the hail Mary from CVT they would have been gone by now (and lets remember that came at a massive discount). Take out the profit made from the Snakk shares and it gets worse. The completed plant isn't to an international standard - should be cGMP and without a fractionation plant it produces nothing the market wants (as sales show). At the end of the day its longevity depends on how deep CVT's pockets are as it isn't going to be cash positive anytime soon. I wouldn't pick on it so much if the management showed even a modicum of honesty but its a farce. New guys got benefit of the doubt but they are just as bad if not worse.
Give me one undertaking they have delivered on? Seriously - how can you keep a straight face and repackage a $4.9m loss and $300k of sales in 6 months as anything other than a total disaster.
Plenty of things out there I am very positive about - NZR (this is cheap) on NZX, MET, MFT, MEL and FRE have been very good to me.. good time to buy on ASX - BHP, VIT, and ANZ has cleaned BS,,
Some big calls there .... I think if you asked Comvita whether they expected SeaDragon to survive through to the end of next year, they might have something other to say than 'at the outside'. They would certainly have a different view as to whether they are in the habit of throwing out a hail Mary as part of their business plan.
There are some massive hurdles ahead, no question, but with unrefined tuna oil supply in place for 12 months and added capital secure (shareholder approval pending) one would have to think they have a better than 'outside' chance to see another year or more, with CVT in partnership.
Perhaps you have more knowledge about fish-oil refineries than you are letting on? Or have you seen a report on the standard, or lack of, that the rest of us have not seen? Again, big call. While management may no longer have your benefit of the doubt, the refinery deserves more than 6 months to prove itself, surely?
Thanks for stating what shares have been good to you. It does put more definition into why you are giving SEA such a thrashing. All your "good to me" companies are either in the top 50 or have been around for quite a while .... SEA was a back door listing ( how dare they!) which is embryonic in comparison. Like most fledgling startups, they will go through periods of struggle while they sort out what is the best way to go and where they should be etc. This means they will have disclosure issues, working capital issues, supply issues and a lot of today's top 50 would very likely have endured the same things in their early stages.
If SEA has been your first foray into the "penny dreadfuls" then you should try and learn to analyse and critique them slightly differently than you would a top 50 company. If not, then you are naturally going to get a distorted comparison, which will equally naturally lead to the comments you currently display.
Most SEA holders would be disappointed with some of the outcomes to date, but I think it is premature to jump ship just because the management are making management decisions. I think they should be applauded for taking the brave decision to jettison the Omega 2 play. Plenty others would have stayed until that boat sank to the bottom.
Personally, I really enjoy playing with the penny stocks. Much more exciting and certainly not boring. I must also add that I do not put any dosh into the stock market that I can,t afford to lose and of course, if things turn out well for the company....then what a pay day! I still fully expect SEA to provide me with a nice pay day in the not too distant future.
But you keep reminding us you are an investor? This isn't investing it is speculating and I have no issue with that. Have said before there has been money made here just on volatility. Likewise find one post that has criticized their back door entry? Totally irrelevant to me.
Not sure why I would critique any listed company differently? Only thing I critical of here is the level of dishonesty and misinformation and that has nothing to do with whether or not they are a 'penny-dreadful'.
The exiting of Omega 2 is classic - there is no exit, the plant is there, the stock is there - it was $5m of sales a year for the last 3 years (at least) with a 50% gross margin last year. Unless the capacity is going to be used with new products are we really to believe that they have decided to walk away?? We aren't talking about a business doing $100m walking away from a fringe activity - it is there core business - there only business!
The truth is it made a good story - a sacrificial lamb to slaughter so they can prop up next 6 months.
If they can't liquidate the stock they are going to need at least another $3m by year end and each $3m is 375 million shares. Year end they could be close to 4 billion issued (funny in its own right) so at a share price of .8 cents its $32m....... PE 18 (generous) is $2.5m before tax (accept they have a lot of losses to use!) there is no possible way you can make the math work.
Note they are not even talking about forecasts anymore!?
So with no likelihood of dividend anytime soon Capital Gains must be the only reason to buy/hold - and if anyone can see a reason that might happen feel free to share.
So what you are saying is that the background that a stock comes from does not matter?
Which means that parents who spend big bucks and put in huge efforts to put their children through good schools and universities are wasting their time - they are going to be assessed the same way as a graduate from a school/university well known for producing criminally inclined individuals.