HQ Sustainable Maritime Industries (fka HQSM)

[MarkV]

I don't understand your english dude.
What in god's name are you trying to say???
LMAO

[luisalmeidapt]

Here a good articule http://fis.com/fis/techno/newtechno.asp?id=36008&l=e&ndb=1
about these Stock.

Let's see if the CEO's objectives are met

HQ Sustainable Maritime's President and Chief Executive Officer. "In 2010, we believe our efforts to reposition our Company behind higher margin product categories combined with increased operating efficiencies from our vertically integrated operations will enable us to realize an exceptional period of strong sales, margin expansion, and long-term profitable growth."

I have these stock in my wallet, what you think about that?
Thanks

[zsvq1p]

Maybe 6.25 was better...

[zsvq1p]

I think $6 might be the good entry??

[zsvq1p]

Still on my watch...

[zsvq1p]

Almost ready to buy again...

[DodgeFan1]

The next earnings conference call here in May is going to be a good one. This will take us higher. We need to fill the gap from around the high $11.88. GLTA..

[zsvq1p]

Not a bad run since March!

[novicetrader]

I didn't know that HQS sold at Sam's Club,that's great news!Gives them a lot of exposure,Sam's is a sister concern of Walmart.Is this something that started recently,or have they been selling at Sam's earlier too.Also does anyone know if they sell at Walmart too?

[stanu78]

Nice run today for HQS. here's the link to the sams club website where HQS sells their tilapia products..

http://www.samsclub.com/shopping/search.do?searchtype=simple&catg=1&simplesearchfor=TiLoveYa&simpleitemtype=0&x=15&y=3

[a_251cadence]

I saw that Zack's mentioned the company...must have been the right audience...

http://www.tradingmarkets.com/.site/news/Stock%20News/2069234

[novicetrader]

What's up with our HQS?Been having a great run last few days.Anyone have any ideas why?
Thanks

[a_251cadence]

above average volume the last couple of days and the price shows strength ...any ideas why???

[DodgeFan1]

HQ Sustainable Maritime Industries Inc. (HQS) At 2:09PM ET: 5.36 Up 0.02 (0.37%)
Upgrades & Downgrades History
UPGRADES & DOWNGRADES HISTORY
Date Research Firm Action From To
11-Nov-08 Roth Capital Initiated Buy
16-Jun-08 Cowen & Co Initiated Outperform
This stock is up while the Dow is having a horrible day! Now is the time to buy. It helps that we just just coverage from Roth Capital Its a buy!

[a_251cadence]

morning giff ... what's your take on this company now that it passed your $6 support and went down and touched $4.90...fuel costs expenses should be coming down ...will the food expos help ? tia

[a_251cadence]

stanu78 congrats on the MOD job ...hope things pick up

[stanu78]

I wonder why those institution bought them at the private placement . I wonder if they know the result iwll be bad or they are also clueless just like us..

HQS tends to delay things / projects... and dilution (private placement)... a lot of talk and less result also...

I think if they don't make much progress in the next 6 months, it is hard to trust management competency

[stanu78]

any take on the most recent earning/losses

[stanu78]

I'm thinking of adding .. anyone like the price currently...

[stanu78]

I didn't sell at $15.. didn't realize the result will be so bad after completing the private placement (the buyer must have een pissed)

and I also can't believe that the day before earning the stock seems to move like there's a leak on the news.. was thinking to sell but I thought this company has great future..

still above my purchase price but not sure this will hold..

Stan

[zsvq1p]

Yes, I think the sell off was extreme... IMO likely came from one of the funders IMO...$6.00 conversion so that will be the bottom IMO..

so.. "Gross profit declined due to increased prices for live tilapia as a result of shortages caused by severe winter weather in China, as well as increases in labor and energy costs and a continued softening of the US Dollar." Same with health products.

The only thing I don't like about this company is the Trade receivables, net of provisions $29,078,328... CFO once told me due to "the way China does business"... I think that is bad business. I track another China food company, ALRC.OB, and they too have high AR. http://www.sec.gov/Archives/edgar/data/1117057/000120445908001071/alorain10qcomp.htm

Do I think this pops again? Yes... I will come up with new target again when I get a chance to think about it some more...

[zsvq1p]

HQ Sustainable Maritime Reports Results for the Second Quarter of 2008
Wednesday August 13, 6:08 am ET

SEATTLE, WA--(MARKET WIRE)--Aug 13, 2008 -- HQ Sustainable Maritime Industries, Inc. (HQS - News) ("HQS" or the "Company"), a vertically integrated aquaculture producer, processor and distributor of toxin free and organic tilapia, and processor and distributor of marine-bio products with operations in the People's Republic of China ("PRC"), today announced its financial results for the quarter ended June 30, 2008.

Second Quarter 2008 Highlights


-- HQS sales were $14.5 million, up 6.4% from the second quarter of 2007,
and up 57.8% from the first quarter of 2008

-- Gross profit was $5.0 million, a decrease of 24.0% from the second
quarter of 2007

-- EBITDA was $511,348, compared to $3.4 million in the second quarter of
2007

-- Net loss to shareholders was $993,438 compared to net income of
$832,081 in the second quarter of 2007

Second Quarter 2008 Results

Our sales in the second quarter of 2008 were $14.5 million, an increase of 6.4% year-over-year from $13.7 million in the second quarter of 2007, and an increase of 57.8% from $9.2 million in the first quarter of 2008. Revenue from the aquaculture segment was $9.6 million for the three months ended June 30, 2008, up 8.6% from $8.8 million in the second quarter of 2007. Revenue from the Company's marine bio segment was $4.9 million for the three months ended June, 2008, up 2.2% from $4.8 million in the second quarter of 2007.

Gross profit in the second quarter of 2008 decreased 24.0% to $5.0 million (34.1% of sales) from $6.5 million (47.8% of sales) in the second quarter of 2007. Gross profit declined due to increased prices for live tilapia as a result of shortages caused by severe winter weather in China, as well as increases in labor and energy costs and a continued softening of the US Dollar. Gross profit margin for the aquaculture segment was 15.0% for the second quarter of 2008, compared to 28.0% in the second quarter of 2007. Gross profit margin for our nutraceutical and personal health care products (marine bio) segment was 72.0% for the second quarter of 2008, compared to 86.0% in the second quarter of 2007.

"HQS' sales rebounded in the second quarter of 2008 from our traditionally slow first quarter. But, while we did not directly suffer from the severe winter storms that hit mainland China beginning of 2008, we were subsequently impacted by dramatic cost increases due to decreased tilapia supplies and increased cost of feed, fuel and labor. Although through the avoidance of long term fixed price contracts we are usually able to pass along price increases to our customers, the rapid rate and scope of cost increases outpaced our price increases. The situation has since stabilized and current prices reflect expected profitability," said Norbert Sporns, CEO of HQ Sustainable Maritime Industries, Inc.

"HQS sales were below our expectations as many buyers delayed or reduced purchases due to expected substantial price corrections at the end of the summer," continued Mr. Sporns, "however, our direct sales increased markedly during the quarter. The benefits of these sales is being felt now as costs stabilize and new, higher margin products are introduced to more buyers directly in touch with new consumer preferences. This relationship led to the declaration of our 'Tilapia Bill of Rights,' which allowed our more direct buyers to address consumers' food safety, environmental and health concerns, building further the relationship and the reliance on HQS quality. Health product sales were also affected by increased costs as some raw material costs experienced substantial increases. A new price structure reflecting these increases and continuing historic profitability has been announced for September 1 of this year," continued Mr. Sporns.

Operating income in the second quarter of 2008 was $148,840, compared to operating income of $3.1 million in the second quarter of 2007, including an increase in doubtful accounts for both business segments of more than $600,000 in 2008. EBITDA was $511,348 in the second quarter of 2008, down from $3.4 million in the second quarter of 2007. Finance costs during the second quarter of 2008 were $803,219, down from $1.5 million in the second quarter of 2007 and $1.6 million in the first quarter of 2008. The decline resulted from gradually phasing out the non-cash costs relating to warrant amortization costs and the embedded conversion option on the promissory notes issued in 2006. Included in the finance costs for the second quarter of 2008 is a non-recurring legal settlement of about $702,000. Financing costs are expected to remain in the range of $200,000 per quarter for the rest of fiscal year 2008. Net loss available to shareholders in the second quarter of 2008 was $993,438, compared to net income of $832,081 in the second quarter of 2007. The Company had foreign currency gains of $1.6 million in the second quarter of 2008, compared to a foreign currency loss of $9,019 in the second quarter of 2007. Loss per diluted share in the second quarter of 2008 was $0.083, compared to earnings per share of $0.09 in the second quarter of 2007.

Six Month Financial Results

Revenues for the first six months of 2008 were $23.7 million, up 10.4% from revenues of $21.5 million in the first six months of 2007. About 75.0% of this increase in sales revenue came from increased sales for the aquaculture product segment. Gross profit was $8.9 million, down 2.8% from gross profit of $9.1 million for the first six months of 2007. Gross margin was 37.3%, compared to 42.4% for the first six months of 2007. Operating income was $872,917, down 69.2% from $2.8 million for the first six months of 2007. Net loss was $2.0 million, or $0.172 per fully diluted share, compared to a loss of $734,414, or $0.103 per fully diluted share, for the same period a year earlier.

Financial Condition

As of June 30, 2008, cash and cash equivalents totaled $42.9 million, down from $47.0 million as of December 31, 2007. The Company had current assets of $75.0 million, up from $73.4 million at the end of 2007. Current liabilities were $9.2 million as of June 30, 2008, and the Company's long term debt consisted of $3.9 million of convertible promissory notes outstanding, excluding the current portion of that liability. Shareholders' equity was $75.6 million as of June 30, 2008, a 9.9% increase from $68.8 million as of December 31, 2007. There was a net decrease in cash and cash equivalents of $7.9 million during the first six months of 2008 mostly due to $4.6 million being used in operating activities and $3.0 million for the acquisition of plant, property and equipment, and construction.

Outlook for 2008

A new feed mill is being constructed that is scheduled to be completed in 2008. Once fully operational, the new feed mill will be able to produce at least 100,000 metric tons of feed a year. All of the feed mill's planned production will ultimately be used by HQS in its aquaculture business.

Current tilapia processing plant has been expanded from 20,000 metric tons live weight of annual production capability to 30,000 metric tons live weight of annual production capability or an increase of 50%. This expanded production is now operational. A new processing facility is planned that will double processing capability to 60,000 metric tons live weight per year.

Additional expectations moving forward:


-- Sales to increase as cost levels stabilize;

-- Increased emphasis on the importance of vertical integration as large
institutional buyers consolidate their traceability, food safety,
environmental and social impact standards;

-- Total shift to direct sales with 'consumer first' innovations of
products especially value added and high end organic products to capture
high end differentiated product opportunities;

-- Complete feasibility study of shift to pond ownership to enhance
vertical integration;

-- Expand marketing and branding of fish by-product health products,
branded under the "Omojo" label;

-- Continue to educate investors and increase understanding of the
roadmap of the Company moving forward

Use of Non-GAAP Financial Information

This press release includes certain financial information (EBITDA), which is not presented in accordance with GAAP. EBITDA was derived by taking earnings before financing costs, taxes, depreciation and amortization. The Company's management believes that this non-GAAP measure provides investors with a better understanding of the Company's historical results by focusing on its core business operations. Non-GAAP information is not meant to be considered in isolation or as a substitute for GAAP financials. The non-GAAP financial information that the Company provides also may differ from non-GAAP information provided by other companies. A table included at the end of the attached financial tables provides a reconciliation of the non-GAAP financial information to the nearest GAAP measure.

Conference Call

HQ Sustainable Maritime Industries, Inc. management will host a conference call at 11:00 a.m. Pacific Time on Wednesday, August 13, 2008 to discuss financial results for the quarter ended June 30, 2008. The conference call will include Mr. Norbert Sporns, Chairman and Chief Executive Officer; and Mr. Jean-Pierre Dallaire, CFO. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: [phone]. International callers should call [phone]. The Conference Passcode is 98542138. If you are unable to participate in the call at that time, replay of the conference call will be available from 11:00 a.m. Pacific Time on August 14 through Wednesday, August 27. To access the replay, please call [phone]. International callers should call [phone]. The Conference Pass Code is 53198765.

[a_251cadence]

hey, giff...do you think the sell-off down to $7.01 was a bit extreme ? will it bounce ?...I know you called the $15 pps...what's your new target? glad you're still around

[zsvq1p]

6:11AM HQ Sustainable Maritime Industries reports Q2 (Jun) results, misses on revs (HQS) 11.93 : Reports Q2 (Jun) loss of $0.02 per share, excluding legal charges, $0.26 worse than the First Call consensus of $0.24; revenues rose 6.4% year/year to $14.5 mln vs the $16.2 mln consensus.

[a_251cadence]

wow...never thought we would see these prices again

[zsvq1p]

Added to Russell 3000
close of the market June 27

http://www.russell.com/indexes/membership/reconstitution/recon_3000_additions.asp

Just finished reading... Ugly Americans.

[boomerstock]

cowen just put out an OUTPERFORM on HQS..eom

[zsvq1p]

$15... Not exactly as thought but got it...

Must say this is a good one!

[boomerstock]

hqs prints 14.73 high for the year..yowser bowser

[boomerstock]

China Fish Supplier a Full-Scale Ag Play
Norbert Sporns, CEO of HQ Sustainable Maritime Industries, says his company is growing by supplying farm-raised fish to American retailers like Wal-Mart, Kroger and McDonald's.
Sat 05/10/08 17:59 PM EST -- Gregg Greenberg

yipeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee

[boomerstock]

an excerpt from the Auer fund,

HQ Sustainable Maritime Industries
The fund managers went looking for exposure to the food sector and China. Auer thinks he's landed both in HQ Sustainable Maritime Industries (HQS:hq sustainable maritim ind i com new
News, chart, profile, more
Last: 12.00+0.44+3.81%


A month ago, the Seattle-based firm received a large order to supply frozen tilapia fillets to a major U.S. fast-food operator. Auer believes this could be a supply-contract with either McDonald's Corp. or Burger King.
HQS didn't name the customer in a press release. But, it said the deal would have a "material" impact on its finances and said its frozen tilapia fillets replicate the taste and texture of Alaskan Pollack, a fish used in fast-food sandwiches.
For Auer, other attractions to HQS include the increasing U.S. imports of tilapia, a consumer movement toward eating toxin-free fish, and the declining stocks of ocean fish.
HQS reels in its tilapia from a network of at 1,500 fish ponds off the southern coast of China, on an island known as Hainan, where the company is ramping up its operations.
Shares of HQS closed Thursday at $12, up 44 cents, or 3.8%.

[zsvq1p]

LOL.. Not yet, but they're on my mind!

[a_251cadence]

hey giff, glad to see you are still here..the pr doesn't seem like a strong enough item that even if leaked would cause a spike..it did help the sliding pps today, tho ...did you ever put your "art" to a presentation or review of HQS...sorry if I missed it IMO

[zsvq1p]

News... HQ Sustainable CEO Named to Import Safety Panel at International Boston Seafood Show 11:54a ET February 7, 2008

HQ Sustainable Maritime Industries, Inc. (AMEX: HQS) ("HQS" or the "Company"), a leader in toxin-free integrated aquaculture and aquatic product processing with operations in Hainan, PRC, today announced that the Company's president and CEO Norbert Sporns will serve as a panelist of "Improving the Safety of Farmed Seafood," a conference program of the International Boston Seafood Show. The roundtable session, organized by SeaFood Business Magazine, is scheduled for 2:00 p.m. on Monday, February 25.

"Aquaculture is the fastest growing segment of the seafood market; safety and quality must be guaranteed, wherever we operate," said Sporns. "If we do what's right for the customer and the environment, we'll also be able to meet demand, assure quality and provide long-term food security."

The panel will focus on the recent FDA alert report of certain farmed imports from China and address strategies to prevent the use of banned drugs in Asian aquaculture and restore consumer confidence in farmed seafood.

"Improving the Safety of Farmed Seafood" is scheduled for Room 153AB of the Boston Convention and Exhibition Center, located on 415 Summer Street.

For additional information on the Boston Seafood Show (Feb. 24-26), please visit http://www.bostonseafood.com.

Think it was this???

[a_251cadence]

giff...are you still around ? what's your take on yesterdays volume and the overall view of the company and stock price...tia

[boomerstock]

where is everyone....the fun is ready to begin

[boomerstock]

just as i guessed :) eom

[zsvq1p]

Wild ass guess...

Go here and you might win some money.... almost crunch time..

http://investorshub.advfn.com/boards/board.asp?board_id=1594

[boomerstock]

giff: what is "WAG", thanks...eom

[zsvq1p]

Stan.. I got a nice spreadsheet on this one.. but need to update.. As for PPS.. It would be a WAG...

I'll say if they really look forward $10 mil at 13 mil OS, thus EPS $.77, I think at some point it will hit $15

[stanu78]

giff, theoritically it does make sense but I dont think you will see $4M X 4 as the annual earning.

one can argue they will grow too so $4M x 4 quarters might be conservative.

but I wouldn't bet my life that HQS will have $16M annual earning in the next 4 quarters..

i'm guessing it will be a lot lower.. some quarters are seasonal and actually the earning might be a lot lower in some quarters...

If they earn $10M a year in the next 12 months, I think we should be lucky.. (just take a look at the last 9 months earning)..

I might be conservative but I;ve seen so many people lose so much money and get dissapointed for doing exactly what you just said (annualize this quarter earning). I've done that myself in the past and I enede up losin gmoney as well (for setting expectation too high)

obviousl for a company that is stabile, and no seasonality, annualizing earning does makes sense..

hope this makes sense..

what's your target price of HQS btw.. (12 months target price)

Stan
PS: also I don't think HQS will get PE of 21 long term.. they are based in china (emerging risk) and has additional risk for being microcap.. probably PE of 15 is more than good enough. but if they can continue grow earning or make $16M per year i nthe enxt 12 months then maybe tey should get at least 21 PE as well..

[zsvq1p]

gonna gap...After Hours: $9.00 +1.35 (17.65%) as of 4:36PM ET on 11/14/07

I have not look at all this good lately.. but does this make sense?

Net Income $4 mil x 4Q's= $16 mil

"Common stock to be outstanding after this offering 12,549,295 shares", thus Still makes for $16 mil/13 mil for EPS $1.23... thus $9/$1.23 = Forward PE of 7.3 in a sector of 21....

does mkt cap make sense?

[stanu78]

very nice indeed.. should be in the top gainer list tomorrow..

but IMO when they announce the seocndary placement the stock will drop again.. hope they will use the money wisely though..

I;m holding long term. (I've sold some at $10+ to get my cost back)

Stan

[zsvq1p]

10Q out.. EPS $.38 diluted...

Very good

http://www.sec.gov/Archives/edgar/data/857073/000119312507247300/0001193125-07-247300-index.htm

[TwoEdgedSword]

10-Q Expectations

I expect quarterly revenue to be around $14m. Overhead will probably be increased disproportionately (slightly) from last quarter.

IMO - the share price will hover around $10 for the rest of the year.

Positive IR events should coincide with the seasonally light sales period followed by price ascension. Next year about this time I expect the stock to be $20.

All IMO

[steeledge]

Seems like this stock should get some attention with all of the other Chinese brethren. I like the niche, for in niches there are riches!

[stanu78]

Thanks twoedgesword for the explanation

we'll see what happen.

bottom line is:

1. How much are they going to get for each shares that they sell. It ain't going to be $10+ as stated in the filing. I'm guessing it will be about $7-$8 range.

2. what they are going to use the money that they will raise for. (which will help us determine whether EPS will drop or not)

Stan

[TwoEdgedSword]

Stan

Couple things:

This dilution is nothing more than the same dilution that was announced, registered and retracted before. If you're staying upon DD with this stock you'd know that they do not have such an abundance of cash over operating capital to pay for the feedmill and for expansion.

Exactly what they're doing in terms of expansion is not specifically known (and I have not asked) only that there's some 50 percent increase in total output in it.

The specifics of the prior PP were obviously not to the liking of Sporns - thus the retraction. But you had to know that it would be refiled (again, they need cash to pay for expansion and money doesn't grow - fast enough anyway - in ponds).

It should be understood by now too that there's a large difference between registration and effectuation. There's a decent change (IMO) that we will not see a full 4.5M shares dilution. We definately should not expect those shares to be distributed all at once. Quite possibly, that was part of the reason for the retraction in the first place.

The word "dilution" has always been an interesting word as, like many words, is used within different contexts (or without context at all) to paint a particular picture. SO apply an adjective Stan.

Is this "unnecessary" dilution? "caustic" dilution?

What is "dilution" anyway? For me, it lowers the percentage of the company I own. Not something I favor. If you own, say 1/2 percent of the outstanding stock or even less, that is a far different context than if you own say 6 percent (like would be typical where institutional investors are involved).

Considering where this company is in it's evolution, and what the capital is being used for - this "dilution" is not a negative. I the case of many micros, especially those in development, shares distribution for R&D or for payroll (ouch) now that's painful to investors. But for a company who routinely turns profit which is consistently rising who's using the money to facilitaye organic growth?

COMPLETELY different context.

So if you're still wondering why you're still in this stock at this point - then wonder no more and sell.

Afteall, I assumed yesterday (with a smile) that this might crate a buying opportunity. However, I doubt it. There probably are not enough shares held by those who have put the shares distribution in the wrong context.

We'll see. And if so, I'll buy the dips here.

[zsvq1p]

Looks like RW'd 4.2 mil then added these...

with different funder...

so what's da difference?

[stanu78]

wow. 4.5M dilution (PP), that's equivalent of 90M shares before the 20 to 1 reverse split. I'm wondering why I haven't sell this stock yet

---------------------------

WASHINGTON, Aug 21 (Reuters) - HQ Sustainable Maritime Industries Inc. (HQS.A: Quote, Profile, Research) filed with regulators on Tuesday to sell up to 4.5 million shares of common stock.

The aquatic product producer and processor said in a filing with the U.S. Securities and Exchange Commission that Roth Capital Partners and Ladenburg Thalmann & Co. Inc. would underwrite the offering.

It will use the proceeds from the offering to construct a processing plant, complete an organic feed mill and for general corporate purposes