Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Another one bites the dust.
Another one bites the dust.
Zacks had a $6.00 Target now they rate UMAM a Sell...
A ship without a rudder in a sea of uncertainty. Stock now rated a sell. Dropping coverage.
May 09, 2013 | Comments : 0 Recommended this article: (0)
UMAM
By Ian Gilson, PHD, CFA
When Umami Sustainable Seafood Inc. (OTC: ( UMAM ) reported its second quarter results it stated that there was insufficient cash flow to meet its requirements over the next six months. The company is also in default on $30.0 million of debt due on Dec. 31, 2012, which has not been paid as of April 16, 2013, and debt due in one year is $56.6 million. There is also $16.9 million in receivables from Atlantis that is probably worthless.
Excluding the write off of $2.08 million (a provision for doubtful accounts) the company made a profit of $1.2 million and $0.02 a share. However, as shown below, gross margins declined on a Y/Y basis. Cash on the balance sheet declined from $10.8 million to $$4.3 million and that included borrowings of $25.2 million.
The tuna catch in the first quarter was a record. Tons sold over the six months were well below the prior year numbers. Given the significant amount of tuna in inventory in the 60 to 90 Kg range ($31 million) at the end of the first quarter it is surprising that sales were not higher in the second quarter. Also, by our calculation (which is not the one the company uses), growth of the fish stock was a record in the first quarter and for the six months of the current fiscal year.
Ads by Google
Online Trading AcademyLearn to Trade Like a Pro with a Free Trading Class Near You! www.TradingAcademy.com
Despite a record price paid for the first tuna sold at the Japanese auction (which, in our opinion, has, in the past, been a reasonable guide to the season's pricing) the company recorded a significant decline in selling prices in the second quarter, as shown above. Part of this was due to a decline in the value of the yen versus the US dollar but the company recorded a decline in selling prices per kilogram.
On Dec. 20, 2012 Daito Gyorui acquired, by purchase, 13 million shares in Umami, representing close to 22% of the shares outstanding at that time. Daito Gyorui was the largest buyer of tuna from Umami in the 2010 fiscal but did not buy any fish in the first six months of fiscal 2013.
Effective Dec. 8, 2012 Oli Steindorsson, CEO Board Chairman, resigned from Umami and all of its subsidiaries. Subsequent to his resignation the Board of Directors determined that his resignation should be deemed a termination for cause, and all of his vested and unvested options were cancelled. Since then Mr. Steindorsson and The Atlantis Group, which he controlled, have declared bankruptcy.
Mr. Steindorsson was replaced by Mr. James White, a member of the Board since Jan. 2011. Mr. White has significant experience in the mining and gold industries. The company has stated that they are conducting a search for a new CEO. The company does not currently have a board member with the experience and knowledge of the Japanese tuna business of the previous CEO.
Given the cash flow problems of the company and the apparent problems in appointing an experienced CEO we have decided to rate the company "Underperform" and discontinue coverage.
Please visitSCR.Zacks.comfor additional information on our research and coverage universe, andSubscribeto receive our articles and reports emailed directly to you each morning.
http://www.zacks.com/stock/news/99007/a-ship-without-a-rudder-in-a-sea-of-uncertainty-stock-now-rated-a-sell-dropping-coverage
$2 to 2 cents:
For years, people in the fish industry have been pursuing the elusive goal of breeding bluefin completely on farms, from eggs all the way to mature fish. Clean Seas Tuna, an Australian aquaculture company, has been one of the leaders in efforts to breed tuna; Time included the company’s breeding tank in the magazine’s “50 Best Inventions of 2009.”
However, Clean Seas announced right before Christmas that it was suspending its breeding program for southern bluefin tuna (SBT). “The volume and quantity of fertilised eggs produced to date has been disappointing compared to other seasons,” the company said in a statement to the Australian stock exchange. “Whilst the Company continues to believe in the commercialisation potential of the successful closure of the SBT lifecycle, investment beyond the Company’s current financial resources will be required for this goal to be achieved.” Clean Seas stock traded at 2 Australian dollars in 2008 and now trades at 2 Australian cents.
Clean Seas isn’t the only bluefin-focused company facing some hard times. Oli Steindorsson, the chairman and chief executive officer of San Diego-based Umami Sustainable Seafood, resigned from all his positions at the company, “effective immediately,” Umami announced on Dec. 10. The new chairman, James White, serves on the boards of several resource companies, including PC Gold (PKL) and Auriga Gold (AIA). Umami “believes that Mr. White is qualified to serve as chairman of the Board due to his financial background and experience in the debt and equity markets,” the company said.
I interviewed Steindorsson in 2011 and he warned then about the need for patience. Given the challenges in trying to breed a fish that can easily weigh over 300 lbs., he said, Unami’s program would need five to seven further years before there would be results. “This is not an Intel (INTC) chip, these are biological creatures,” he said. “No matter how fast we want to do this, we always have to respect the laws of nature.”
Well it looks like UMAM went On Sale today.
Good job, Chuck. You're getting there! LOL
first volume was 100 shares. at least we're seeing minor volume
Interesting. Someone(s) put a Bid under the stock at $1.70 after being down at $1.49. Bid $1.70 X Ask $1.79 now.
an amendment filed- exhibits 31 and 32 corrections which I don't think we see anyway: http://secfilings.com/searchresultswide.aspx?link=1&filingid=9226895
Looks pathetic. What a horrible Q over Q. No wonder the CEO is no longer there.
I would have thought Dec would have been a solid Q for them when looking at last year.
What a Sucking Q.
The only good thing I could find is that Inventories are up 50% which should bode well for sales going forward.
caught up, lost money, increased assets though http://secfilings.com/searchresultswide.aspx?link=1&filingid=9225487
What is going on with UMAM? Geez, they must have made so much money it's taking them forever to Count it. I can't believe it's taking them this long post their earnings. Perhaps they need to hire a new CFO! Come on umami sustainable seafood get your filings caught up!
I love the growth rate of Earnings on UMAM.
2010: Loss of ($46,000)
2011: Earnings of $1,035,000
2012: Earnings of $14,797,000
2013: ??? Who knows for sure but I believe the earnings continue to improve.
Of course, they have got to File Their Earnings for us to know. So far they are sure taking a very long time to do that with the December report.
Come on Umami, post your earnings.
A little volume on UMAM today but still unable to break through $2.00.
My goodness,the Offer keeps getting adjusted (right now at $1.90). When one trade goes off then someone adds more shares back to the Ask. Looks to me like someone has a lot of shares and for some reason just doesn't want to sell them above $2.00.
Seems weird they wouldn't want to take a better price on the shares possibly above $2.00.
Nice volume relative to the average volume though over the past few days/weeks.
Nice volume today, I may pick up some shares myself tomorrow.
can't say under 10K volume is steady great, but at least someone's buying, LOL.
I agree, also it looks like were beginning to see somewhat of a steady UMAM volume.
all I can say is we're not seeing huge spread, that's in our favor
First thing out of the box today, UMAM gets some nice Ask Hitting trades. Bid moving up. What surprises me is that those Offers seem to be understated. It sure seems to take a lot more shares to move through those Asks than the Size being shown on Level 2.
8,372 UMAM Bid at $1.90
I picked up a few more today myself
I bought a few more UMAM this morning
Hoping for news of the future and a new CEO soon.
with all the auditing that went on before turning company over, you'd think it would have gone smoother.
They always seem to be late.
financials will be late: Although management has been working diligently to complete all the required information for its quarterly report on Form 10-Q as of and for the three and six months ended December 31, 2012, the Registrant requires additional time to finalize its financial results. Such delay could not be eliminated by the Registrant without unreasonable effort and expense.
http://secfilings.com/searchresultswide.aspx?link=1&filingid=9097396
good day if we hold that near 9% gain.
Some really nice UMAM buying coming in today.
I was able to pick up a few more UMAM at $1.84
I agree, the UMAM silence is deafening. However, those big bids look very interesting.
it would be nice. Need to hear news from company
UMAM looks ready to move up. 11,900 Shares Bid at $1.83
at least someone wants in, LOL. New CEO should have his stuff together by now
Nice Bid for UMAM at $1.81
new on the Tuna front-DRONES. Boeing. Boeing has moved to acquire its UAS partner, Insitu Group--a firm that began by using surfboard makers to build a basic UAV platform for tuna spotting. Yet Insitu's turnover in 2008 surged to over $150 million, up 70% year-on-year. Retaining the small company's innovative spirit within the larger organization will be challenging, though Insitu will certainly benefit from Boeing's political heft and wider resource base. Boeing intends to build its unmanned business to over $1 billion in sales over the next five years.
It's amazing how a fish story attracts the bugs right into to the bug zapper! LOL
Wow, I hope UMAM sees some business like this: http://www.huffingtonpost.com/2013/01/05/bluefin-tuna-sells-for-incredible-record-tokyo-fish-auction_n_2415722.html?icid=maing-grid10|htmlws-sb-bb|dl35|sec1_lnk3%26pLid%3D253290
I agree and all of these UMAM Filings must mean something.
We've made it back above $2, very promising indeed.
Good things coming to UMAM Longs I believe.
got tie up here .. so no worry good thing coming>> better more prfit for the co. cheer"s
good luck to U . here is need more volume.. and need more rader on umam$$$$$$
You do know that most pos means something different on IHub than position, LOL? You keep throwing me off.
this pos is long term > this will takes time> every year will demand more/ more (( china be more demand coming)) tuna for sure to come>
green will be coming > patient on this one> more commercial tuna farm are increasing world -wide. this is very good sart up ahead of the game by this co. bug and hold. yes.. coming year will be more prosper on umam > good luck to all . g/wkend>>>>>
I hope so. Looks like they are gaining financing. Things are moving fast.
gm > happy new year and bring us prosper year
another 13D and a form 3 for 13M Shares by Daito Gyorui Co., Ltd.
2-1, 5-CHOME
TSUKIJI, CHUO-KU
TOKYO, M0 104-8436: http://secfilings.com/searchresultswide.aspx?link=1&filingid=8989321
13D-http://secfilings.com/searchresultswide.aspx?link=1&filingid=8989310
21.8%(1)
14
TYPE OF REPORTING PERSON*
CO
(1) The percentage owned is based on 59,515,543 shares of common stock outstanding as of November 21, 2012, as reported by the Issuer in its Form 10-K/A filed with the Commission on November 21, 2012.
another 13D. Could be a correction, thought Garcia already had 13D yesterday:http://secfilings.com/searchresultswide.aspx?link=1&filingid=8978992
Followers
|
4
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
559
|
Created
|
10/27/08
|
Type
|
Free
|
Moderators |
Umami Sustainable Seafood Inc. is a holding company of fish farms, supplying sashimi grade bluefin tuna to the global market. Umami seeks to produce and distribute healthy seafood of unrivaled quality, satisfying the world's growing protein need in an economical, efficient and environmentally friendly manner.
The Company owns and operates two Northern bluefin tuna farms, in Croatia and Mexico.
Croatia:
Located near the millennial city of Zadar, Kali Tuna is a Croatian-based aquaculture operation raising Northern bluefin tuna in the unique surroundings of the Adriatic Sea.
Mexico:
Baja Aqua Farms operates three concessions of tuna farming cages in the marine area surrounding the burgeoning city of Ensenada, Mexico.
Umami intends to become the leader in the Northern bluefin tuna industry by acquisition and internal growth. The growth of the Company will be founded on the sustainable management of resources and economically sound practices, seeking opportunities resulting from market consolidation and scientific progress in the industry.
"Sustainability, in a broad sense, is the capacity to endure. In ecology, the term describes how biological systems remain diverse and productive over time. For humans, it is the potential for long-term maintenance of wellbeing, which in turn depends on the wellbeing of the natural world and the responsible use of natural resources." - Wikipedia
Bluefin tuna farming - Sustainable or not?
It has been argued that farming carnivorous species such as the Bluefin tuna can not be sustainable.
Umami argues that it is in fact very much so. The case for sustainability in the production of Bluefin rests on two very important questions:
The two main resources for Bluefin tuna farming are live bluefin and small pelagic fish.
With the Atlantic bluefin tuna stock down 75% from its highest historical point, it is paramount that steps are taken to restore it to a secure level. As no commercially viable way of breeding has yet been developed, the bluefin tuna farms remain made up of live fish, caught in their proximity and towed to the cages.
The management of Umami is aware that the bluefin production could not become sustainable while fishermen in the Atlantic and the Mediterranean were over-fishing the stock. That was the case until 2010, when ICCAT's first Total Allowable Catch was lowered into a range, supported by scientists.
The other main resource, essential to bluefin farming is feed; small pelagic fish, such as mackerel, herring, anchovies and sardines. All feed used in the operations can be traced back to abundant stocks. Most of the feed used is fished in close proximity of the operations.
In regards to the second question it must be noted that for every kilo of bluefin, 14-20 kilos of small pelagic fish are used as feed. This might seem an outrageously unsustainable practice, were it not for two important facts.
Hence, the food conversion ratio for fish in captivity should be lower than it is in nature.
Umami's farm only uses feed, caught from ample resources, therefore caught in a sustainable manner. UMAMI's R&D team continuously seeks to decrease the Food Conversion Ratio.
Furthermore, the management of Kali Tuna has made a considerable effort in past general meetings of ICCAT to lobby for lower quotas, and will continue to support the organization in every effort to control the catch.
Closing the Lifecycle
A great improvement in the sustainability of Umami's practices might be at hand in the near future.
Breeding the bluefin tuna is the future of sustainable practices in the farming of the species. The R&D team at Kali Tuna has worked vehemently at creating a commercially viable way to domesticate it. In the summer of 2009 a breakthrough discovery was made. The fish had spawned in captivity. Fertilized eggs were taken to a laboratory in Split, Croatia, where they hathced and were kept alive for days.
The research will continue in the summer of 2010. The commercial implications are yet to be seen, and years will pass until the Life-cycle will be closed. However, the fact remains that the cages of Umami's subsidiary have become a spawning ground for Bluefin tuna, as most of the fertilized eggs are discharged into nature.
Scientists in other parts of Europe, Australia and Japan are on the same quest and the R&D team at Kali Tuna will follow the research closely.
Traceability
For the sake of sustainability and quality, Umami embraces traceability technologies in every aspect of the production cycle.
While traceability in itself does not guarantee safety, quality or sustainability, it is essential to pinpointing problems - should they occur - throughout the entire production chain. Not only limited to the production, the traceability encompasses suppliers, processors and distributors.
Umami's traceability tools are continuously being improved and extended into other operational fields.
Guilt-free Bluefin
The aim of UMAMI is to supply the world with seafood of the highest quality, produced with minimal impact on the eco system. Enhancing our breeding techniques always involves the goal to lessen the environmental impact of our operations. We introduce: Guilt-free bluefin for all.
For most people Tuna is just Tuna. Most people know the canned version of tuna, a household item in most parts of the world. Many enjoy tuna as a sushi topping or sashimi. However, few people know that there are more than one species of tuna. The fact is that there are several species of tuna swimming in the world's oceans.
The many types of Tuna
Most common is Skipjack Tuna, mostly used for canning. Skipjack accounts for about 60% of all Tuna caught each year. Yellowfin is the second largest at about 24%. Bigeye Tuna is at about 10% and Albacore 5%.
Sashimi grade Tuna
The species most commonly used for Sashimi and Sushi are Yellowfin, Bigeye and Albacore tuna.
The remaining 1% is Blue Fin Tuna; the giant of the Tuna family. It is the world's most sought after and the most delicious Tuna for sashimi and sushi. It is traditionally consumed raw for sashimi or sushi but is a fantastic tasting and healthy as seared steak.
Two major species of Blue Fin Tuna exist, Southern Blue Fin Tuna, found in oceans in the Southern hemisphere and Northern Blue Fin Tuna, found in the Northern hemisphere.
Blue Fin Tuna is especially sought after by the Japanese who traditionally consume over 80 - 90% of all supply.
Northern Blue Fin Tuna (NBT)
The northern bluefin tuna is an important commercial species, especially for sushi and sashimi. This commercial importance has led to significant ranching of the fish.
This fish provides the finest sushi topping there is available in the world, but in order to fetch the best price, the fish must be in optimal condition.
General Overview
We are a leader in long term farming of Northern Bluefin Tuna in the Mediterranean with farming facilities located in Kali, Croatia, along with a processing plant, freezing storage and wharf. We cultivate our tuna with special reliance on technology and experience to grow the tuna for two to three years following their capture in the wild.
Our operations include farming, feeding and harvesting Northern Bluefin Tuna that was caught in the Mediterranean and the Adriatic Sea.The fishing process is outsourced to an affiliated party. During the past three years, we have been increasing our carry-over stock of tuna to increase output quantities each year. We will seek to expand our operations by acquiring additional licenses, vessels and/or companies in the years to come both in the Mediterranean and other regions suitable for sustainable catching and farming methods.
Our objective is to create a self sustaining farm environment where tuna fish spawn, and the resultant eggs are hatched, in captivity without having to rely on the capture of fish in the open seas thereby depleting the natural stock of Bluefin Tuna.
We have marketed our products mainly in Japan through our parent company, Atlantis Group hf (herein sometimes referred to as Atlantis). In addition, during the past year, we have increased sales of fresh tuna to Europe and the U.S. We intend to increase our total production worldwide to 5,000 metric tons per year which will be marketed into Japan, US and EU.
Recently, Atlantis has entered into an agreement with Daito Gyouri of Japan (the "Daito Agreement") for the sale and delivery of at least 500 metric tons of frozen Northern Bluefin Tuna annually. Immediately following the completion of the offering contemplated hereby, we will enter into an agency agreement with Atlantis providing for the sale of Bluefin Tuna by Atlantis to Daito Gyouri on our behalf. As a result, up to 500 metric tons of tuna to be delivered under the Daito Agreement by Atlantis will be filled by fish that was farmed by us. We have agreed to pay Atlantis an agency commission of 2% of all sales to be made under this agency agreement.
For more investors information regarding Umami Seafood please contact our head office
Umami's subsidiaries are recognized for the best farmed northern bluefin tuna in the world with an excellent recognition in our main export market, Japan over the past 14 years.
LATEST FINANCIAL RELEASE (2/10/2012 http://secfilings.com/searchresultswide.aspx?link=2&filingid=8396452
Umami Seafood
1230 Columbia Street Suite 440
San Diego, CA 92101
(619) 544-9177
website: http://www.umamiseafood.com
Email:umami@umamiseafood.com
Umami Sustainable Seafood Confirms Natural Bluefin Tuna Spawning at its Farm in Croatia | |||||||||||||||
| |||||||||||||||
Umami Sustainable Se (OTCBB:UMAM) |
Market Value1 | $122,006,863 | a/o Dec 27, 2012 |
Shares Outstanding | 59,515,543 | a/o Nov 09, 2012 |
Float | Not Available | |
Authorized Shares | Not Available | |
Par Value | No Par Value |
Shareholders of Record | 95 | a/o Oct 12, 2012 |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |