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We get confirmation after confirmation that the RAS concept and SIAF´s development and implementation of it is great. Handling the disease challenges in the open pond shrimp industry: This is also something our CSO Dr Tony Ostrowski will be addressing with selective breeding and sales of certain pathogen free fingerlings to farmers in the region. A giant market that nobody really has taken into account. There is many companies providing feed for the Aqua culture industry but there is only one major player providing fingerlings right now as I understand it from my visit in china and talks with Tony. From the article below its apparent that impact on production from diseases is a big problem in the industry. Not a problem for SIAF though since there has been no outbreaks of diseases, according to Tony and Solomon in SIAFs RAS facilities so far.
So Solomon take some advice from those trying to help you and start respecting the shareholders so we can get the return you promised so long ago...
https://www.undercurrentnews.com/2016/05/03/sixth-tars-meeting-to-focus-on-shrimp-disease-mitigation-in-asia/
Amen to that. I totally agree with everything. I just think that they have to have some sort of corp gov in order for them to get that loan. The reason for that is that I don't believe anybody else have such great trust in Solomon either. He has to be forced to terms by the strong stakeholders that have the ability to come up with the solution. And I think this will happen when Solomon has his back against the wall. Maybe Solomon doesn´t feel that he is there yet, but I´m pretty sure he will be in that position soon.
Sooner or later he will be forced to make a deal, at least that is what I believe will happen. Maybe it has to get even worse before it can get better. The turning point will be when such a deal is being made, in my opinion. Until then I presume we will have more sellers than buyers.
What I know is that we have major stakeholders with deep pockets and ultimately competent consultants with the relevant experience of these kind of actions. They know that there success is dependant on the spinoff working out. I think they have the competence and experience together to pull it off if Solomon does´t obstruct the process. I guess nothing is a sure thing, and if this would of been a sure thing the share price would of been 4 times the current share price. So I guess the market does´t think its a sure thing either. But I do have some insight on the competence of these stakeholders and that makes me optimistic about the probability of success, at least for now.
We all know that Dan is a temporary solution.
I think its great that you are digging and getting questions ready for the call but some of your questions are due to the fact that you have not been arround for so long.
There are a lot of people that know who I am that is posting on this forum. If you knew about my historical postings you would of known that I've been very critical about the lack of work being done by Mr Grossman historically. At the same time I know a lot is out of his hands since everything has to go through Solomon.
I met with Hyperboy aswell on a number of occasions, a very dedicated airline pilot that is trying to help increase his and fellow pilot colleges pension fund through investing in Siaf. He has made many trips to China and the Nordics at his own expense to try to stay on top of things. I suggest you do the same if you want better info.
I don't know what you claim to have digged up, check your findings with Erik Ahl, he is familiar with all historical numbers. He also gets back fast. Just tell him who you are and I'm sure he will give you info at the best if his knowledge. In my view he is very well updated on everything. He has a master of business aswell and solid financial background so I'm sure he can clear some of your questions.
Empty - you know I don't have much confidence in many of the ways Solomon is conducting business and not giving shareholder interest priority but I do believe in the business opportunity that the Aqua spinoff is presenting. There are strong stakeholders with financial muscles and knowledge that is pushing the agenda and I don't think failure is an option. But I'm not arguing with you even though I don't think it's realistic to hope for buybacks at the same time as the company us squeezed for cash due to previous commitments.
Don't confuse my posts with defending Solomons behavior. Everybody could hear that I wasn't his favorite person on the call. I have been very direct with my critique at same time as I kept a close dialogue with others likeminded beside this forum. Change will not happen through actions on Ihub!
I know you been active aswell and I have the greatest respect for your frustration as it obviously is shared by many of us beat up shareholders.
Empty.... don't you think the IR team has told S about the general stupidity about us shareholders getting to wait weeks for the call. They don't control when the call is going to be and how long it should be.
On the last call, we actually ran out of questions and we did´t get cut off. Everybody that wanted to ask questions got through. Not that I´m happy with the answers I got. To unspecific for me to be pleased... but than again you already knew that..:) If people has questions they should get on the call...
There is a lot of things that I´m critical about where most things is a direct consequence of the A-share structure that actually is preventing Solomon from needing to take advise from stakeholders and advisors with greater experience than him when it comes to the financial market place, IR/PR, corp gov, and ultimately the creation of shareholder value...
Having that said there is also a few things that has been analysed over and over by legal firms, the jv-structure, the options and the company set up etc and those are areas where SIAF has actually passed some very competent eyes so in this respect I have no doubt that the company is for real and that the structure is legit.
When it comes to the RAS technology that is owned by SIAF it has also been tested in smaller farms, (not that small really) fish farm one that also is owned by SIAF. But it has also been very well analysed by our CSO which I have met on the investor trip to China last year. We talked a lot and he is a very knowledgable person with great Aqua culture experience. He actually thinks that SIAF is bringing something unique to the table. Not when it comes to every technicality but in the way that SIAF is working this technique and implementing it for example in the very short cycled partial harvest concept with prawns. The RAS system has been tested and optimized and production levels are in fact very strong. There is apparently a lot of value in that research and how SIAF has implemented this technique.
Attending on the same trip we had Bjorn Myrseth a nestor and founder of Aqua culture companies in Norway and ultimately a very respected man within the Aqua culture industry in Norway. He was very impressed with the technology and how it was implemented to such an extend that he wanted to be a part of the Aqua culture project by being willing to serve as a board member in our company. He is independent and highly respected and if he thinks that the RAS technology and the implementation is being done in a great way, Dr Tony Ostrowski shares his view which by the way is the view and vision by Solomon, maybe this is one area that we have the least reason to question. There are other things to question but this is not one of them according to me.
Another big value is the network and the relations with government officials that ultimately has given SIAF the opportunity to construct and later purchase up to 75 percent of the, by far, biggest indoor Aqua culture development in the world. This is not something on paper this is up and running even if it still is in a small scale. This is where we have our opportunity. There has been highly qualified consultants in China on behalf of big stakeholders analysing operations and the company so there is no doubt that the company is for real. Even if I´m not fond of the SJAP operation as an asset in the company we still have to igknowledge the Dragon head award which actually is a credibility stamp when it comes to operations and how that company is run in many aspects. So lets be sharp with the critique and not say that everything is bad when actually some operations actually has some very strong indicators of credentials.
Looking at the value and SJAP as an investment case is a totally different question. In that respect I share most shareholders view on where the company should invest and focus their resources, that being within the Aqua culture operations and making the spin off happen. I think that development of the import business and value added processing can be great but other than that I don't have great hopes at this point for our own production of cattle. Maybe I´m wrong and the new cattle can change that but, I strongly doubt it. ROI is to low in my opinion.
Back to the MF: In that respect we should be aware that the partners in the MF project has agreed to let part of this asset be a part of the spin off. This is very much concrete. Big stakeholders are pushing and helping out with this process. I know this since I´ve talked to them. Progress is always slower than we would like.
But than again that is another of Solomons problems: He likes to do things his way, he is in control of most things, he has a problem with delegation, as a see it. So things takes time even now when we actually have a roadmap going forward. But as always when he is in financial tight spot, as he always has a tendency to get in due to his uncontrolled (to aggressive) investing. He will be forced into some sort of a deal to develop and build the company into that world class asset that he wants. Hopefully that deal will involve some restrictions on his ability to make unfinanced investments decisions going forward without the consent of other qualified independent bod members or financial committee members or in whatever way this will be set up.
So I think there will be a solution to this because Solomon cannot continue to print shares. He has covenants in the convertible bond deal with ECAB that prevents him from printing. Meaning that ECAB could default the company by claiming their money back if he does´t comply. So I think there is actually some mechanisms preventing Solomon from continuing to finance the company through printing. He has to strike a deal that the major stakeholders find acceptable. This is beside the fact that Solomon actually has said that he understands that dilution is not the way to go and that he is committed to spinning of the company with one share class etc.... It is besides the fact that he has said that he is looking eye to eye with FD and others on how to move along for the best creation of shareholder value.
What we are waiting for now is the financial set up that will make this happen, and we can be sure about that this is being worked on as we speak. The bad part is that imploding share price is counterproductive for all of us shareholders when it comes to deciding the terms of that deal so Solomon certainly cannot look away from what is happening right now. The pressure is there to create the results, failure cannot be an option for either big stake holders or Solomon, they are to close to actual big production at the MF to fail now.
Thats how I see it!
Its ok to be negative but we also have to stick to the facts. There is a lot to be critical about but not everything. There is certainly a few bright spots and its those that we will hopefully capitalise on when we get this company split up.
Below you find the Swedbank analysis. Lets not be upset about the things we already knew.
Like meat prices and import restrictions etc. I agree with Swedbank that the issues at hand is not
EPS or sales and definitely not consulting income..... The focus should be on the carve out.
Are they making progress or not. In this respect I know that the big stakeholders are still on it.
And for those who wonders, FD has not left for Rio....:)
Another focus area should be the need for financing to make the carve out work and Solomon agreeing to some proper corporate governance like an financial committee overlooking and having veto when it comes to unfinanced and major investment decisions. A PR giving us that news would be the biggest credibility boost we could have and would work miracles for the share price, in my opinion.
Production numbers and sales in SJAP should not be a major concern at this point since its not implying any value in our current share price anyway.
_____________________________________________________________________________________
By Swedbank Equity analyst: Marius Gaard
Sino Agro Foods just issued an trading update ahead of the Q1 report which is due May 16th, providing information about revenues, gross profit, volumes and average selling prices in some segments, i.e. aquaculture and cattle.
Q1 revenues will be USD 72m versus our USD 86m estimate. A higher share of fish and meat with lower average selling price (i.e. tilapia is a low-value species while eel is a high-value species) and a large drop in sales of cattle (due to a drop in prices) seem to explain the revenue decline.
However, the gross profit will be USD 19m, which is above our USD 18m estimate and in line with management's signals at the Q4 conference call (Q1 = Q4). The gross profit would have been USD 1-2m stronger was it not for Chinese New year and weather challenges, reducing working days for the project development company.
Hence, the EBITDA for Q1 will probably be aorund USD 14m, or USD 56m annualised. The current EV is approx USD 140m, working out to an EV/EBITDA 2.5x. And on our etimates, Q1 will be the lowest quarter in 2016.
The aquaculture segment sold 1,900 tons of seafood in Q1, which is spot on our estimate. However, we do not have details on the mix of species (prawn, eel, trout, tilapia, other).
The cattle business is still challenged with lower selling prices due to China relaxing trade restrictions on beef imports (prices dropping from 25MB/kg to 15RMB/kg).
With gross profit more or less in line we make no estimate changes for now. Q1 report and further details and outlook comments are due on Monday.
Keep in mind that the main focus in this stock is the carve out and separate listing of the Aquaculture segment (in Oslo) - maybe during 2016, and growing the prawn Megafarm (~200,000 tons potential over the next 10 years).
For full disclaimer please go to: http://www.swedbank.no/om-swedbank/vilkar/general-disclaimers/index.htm
Sino Agro Food
Rating: Buy
Target price: USD 13 (13)
Share price: USD 5.65
Please find below a link to our latest research product: Sino Agro Food
Q1 trading update - gross profit in line
If you have any questions, please call sales or the analyst
Sales Sweden
+46 8 700 95 00
Sales New York
+1 212 906 0820
Sales Norway
+47 2323 8030
Sales Baltic
+372 613 1657
Marius Gaard
Analyst
Swedbank AB (publ)
NO-0115 Oslo
Phone: +47 2323 8000
research.swedbank.se
At situations like this when the share price is crashing the most common question is of course why!
Its easy to think that somebody must know something since the price is going down. I´m afraid that is not the case though.
I believe there was a lot of people including myself that was very disappointed with the lack of specifics in the last cc. At least we got info that the first two quarters would be "about like q4" as I understood it.
I guess many felt frustrated and had a desire to decrease their position in SIAF. I also think that is what we seen in the past weeks. What happened in the last days is an accelerated movement as you often get in situation like this, now partly due to the fact that investors think somebody knows "something"....
I have tried to look into the facts about this "something"...
First of all, their should of been no financing shares (printing) hitting the market since the company has to report that to Merkur. No such report has been filed. If the company would´t report such action they would be fined.... Solomon has also had a history of being very thorough when it comes to following SEC protocol, consulting with his legal expertise before he public
I´ve talked to Erik Ahl and asked him if they have started to work anything with the Q1 yet and he said no that means that neither IR in the states or IR in sweden has received any numbers. Meaning Solomon is still holding on to that. Usually the IR department starts working on the report a week or so before its published if I have understood it correctly. This also means that it can't even in a theoretical way be info about the report known to any other than Solomon. At the same time I would like to emphasise that I have the strongest respect for both Erik Ahl and Peter Grossman when it comes to not leaking any information. I have opinions about other issues when it comes to IR but none in that respect.
I have also talked to a major representative of one of our big institutions about his take on the situation.
We have a good relation and I put a lot of trust in what he says. His take was that there were no new information out there known to anybody that would be the catalyst of this latest share price movement.
He also said that historically there has been some buyers out there to pick up some extra shares when the share price has come down but those are not buying at the moment. Buyers are reluctant to buy, before they see results/progress indicating that the spin off is moving forward.
So my take after of talked to these people is that we have had some overweight of sellers lately, buyers are taking it easy. And the share price drop has triggered new sellers because of the uncertainty share price drops creates. It has some major impact on the psychology at almost everybody. I´m no exception.
You want to make sure. I think I have done that and my conclusion is at least that there is nothing new to be frustrated about.
I have also written to Dan about my concerns and the actions I feel the company needs to take to start restoring the credibility in the marketplace and first getting the uncertainty levels down from where we are today.
I know that there are a number of institutions pushing for the Aqua spin off. FD is one of those active stakeholders. So he is not gone. I know this from talking to them. From the information I have, I also feel that Solomon is committed to the spin off but his schedule is packed. Delegation hasn't been something that he has done very well now or in the past. He is the boss and apparently everything runs through him. My critique remains when it comes to his focus and the total lack of visibility and proof of progress. The way the company communicated this time arround without any specifics is nothing but a total communication disaster. At a point when we needed it the most. That is the main reason for the uncertainty and selling pressure dominating despite our extremely low valuation, in my view.
There is no legal problem what so ever to give guidance, every listed company is doing it to help the market with its expectations.
On the other hand, what they shouldn´t do is to talk about investments that they are going to do without having the financing in order. I´m of course thinking about the "canning factory". If the company is short on cash at the same time as we need cash for the spin offs (and we all know that its only the spin off that can boost the share price right now) Solomon should make sure he keeps the cash that he needs to fulfil the spin offs first. With the spin offs in order he will have fundamentals in place for proper financing so until that happens he should go easy on any new endeavours. Let SJAP invest in that can factory after they have been spun off and set up in an order where they hopefully could attract some proper financing for themselves. If he wants to make soup, he can buy that service from an contractor or just wait until he has the financial means to do it.
Everybody knows you can't spend money that you don't have or that its stupid to spend money on nice to have things when you should spend them on what you need to have.... Right now we have more pressing issues. He just seems to have an extremely big problem in saying no to an opportunity or that we have to wait with that for a while.... Unfortunately this is very counterproductive for the shareholder value.
Its pretty clear given the share price action today that most investors (not only me) didn´t think they got the answers they wanted. Uncertainty is a killer...
Having said that I think there are many positive steps/actions ongoing within the company but the communication around them is very poor and its hurting us.
Don't get fixed on the percentage number in my question etc, that was only one way of trying to get an answer on if some actual progress had been made. I wanted examples of substantial progress. One thing that has been done is that Solomon has worked out a plan for the listing. On that very detailed plan (4 pages total) there are a number of actions that need to be worked on. When did he come up with the plan? have they started to execute on that plan? who is doing the work? From talking to other major stakeholders I know that there are professionals working on this, but I think everybody has a right to know since we all are owners. What exactly is being done right now. I´m certainly looking forward to Solomon making relevant parts of the plan public and following up on the progress in that same spreadsheet. Maybe than some investors will dare to believe in his vision. Right now its apparent that we don't have that many buyers for the obvious reasons of lack of visibility....
When you have a project with a specific goal you make a plan and you stick to it. You make it happen, you work more or harder if you run in to problems, but you make it happen, you don't come up with excuses.
So I don't agree with you on your exemplification. At least its not the way I do things/make things happen. Things may turn up but you deal with it when that happens. You make sure you have the adequate resources to solve the task. Otherwise you have an leadership or organizational problem. There are consultants and other experts that knows what needs to be done. There is no need for us to try to find excuses for Solomon. He started talking about this spin of a number of months ago but for some reason he does´t want to show for much concrete action, at least he didn´t want to tell us about it.
I think this depends on the fact that he has´t given this priority, in my view he has been focusing on SJAP and other segments given the actual actions that was communicated. Solomon is only one man and he keeps most things to himself, which is one of the main reasons for why we need a management dedicated on the Aqua business. I guess that is one of the action points on his plan.
I have respect for the fact that it can be a somewhat hard question to answer but he should of been able to exemplify better than he did. "The process has started....." what does that tell you?
When you are in a situation where credibility is very low, meaning the market doesn´t really believe what he is saying until they actually see it. You have to understand that you have to show the market solid progress for the market to believe.... If he had a super track record on delivery according to plan, it would be different. But you have to adjust to the ball and the reality in which the company has to face when it comes to their shareholders. This means you have to be specific and really show that you are actually doing what you have been saying. You have to commit to numbers, when we will benefit from the different ongoing actions and how that they are projecting the impact affecting not only topline but also EPS.
You have to have an opinion about these things when you are running the company. How can you have an opinion about what projects you are about to invest in if you can't have an opinion on how much money (cash flow and EPS) that you will have to your disposal....
Shareholders and investors need solid facts and how they will impact the business for them to be able to make their investment decisions. Without that there will be no buyers meaning it only takes a few worried/frustrated sellers to put pressure on the share price.
At least that is how I see it.
I thought he actually said that they where trying to do that, but that he could´t promise anything....
Thats at least how I understood him.
Solomon did not take the chance to be specific and tell us in detail when he expects progress/and what progress he expects, quantifying it in a credible way. A lot of words and visions but very little examples of how "everything that is going on" will impact the business in the short term.
Right now I think management is misinterpreting the saying "under promising and over delivering".
I think they actually think that its under promising to be unspecific.... I guess they haven´t figured out that shareholders want specific informations on whats going on since that gives you the best fundamentals to evaluate the risk/reward in the business going forward.
There is a lot of very good things going on but given the history of the company the unspecific presentation is a very poor way of communicating with the market, since they aren´t giving any commitment in time. Given the company history, this tends to manifest uncertainty rather than highlighting whats actually going on..... It´s apparent that management really don't understand the psychology of the financial market. They really have improvement potential when it comes to communicating in a credibility enhancing way.
Respect to Tony though, since he gave us honest and straight answers. His answers really indicates potential to increase the communicated production numbers by about 100 percent.
The company say that they need 7 million dollar to finish Prawn farm 3, how hard can it be to allocate this and a 10 million dollar down payment from within the group cash flow. How can they even hesitate on the answer on how they will allocate generated positive cash flow going forward.
Yeah its kind of sad that he can't be specific and still he tries to plan for yrs to come.
I think we got some good and honest answers from Tony though.
Solomon does´t want to commit to anything at the same time as he is presenting new investment opportunities even though its pretty clear that we are constantly squeezed on cash.
To me it does´t build credibility to present unfinanced investment plans.... I guess that is pretty clear to everybody but Solomon, since his top priority obviously is to grow the business. I would prefer him slowing down and focusing his efforts and the company cash flow on the spin off and with that the creation of shareholder value. Showing progress in that area is the fastest way to get into a position where the future of the Aqua segment both can flourish operationally at the same time as it creates shareholder value, potentially on a massive scale. Given his answers or lack of them, he doesn´t seem to be able to really connect those dots as it seems.
He did give us some guidance on when we can expect EPS growth, which wasn´t this first half year anyway.
Also interesting for everybody to hear about the plan for the spin off, even though I thought it would be more interesting to hear about some concrete progress to that plan.... He does´t like when shareholders demands concrete answers from him. He got frustrated with me a few times in China swell, he will get over it though...:) At least you know that you are stepping on some sensitive toes. I´m not the only one demanding that he shows progress on the spin off of course, that was easily concluded from his reaction.
And now its High Yield..:) A very smart and knowledgable long timer.
Obviously an typo mistake, should should say 28,4 millions.
Come on empty, the eels are outside his control. He can't produce a specie with a as high kg price.
SIAF FY15 numbers out, beating expectations according to Swedbanks analysts.
# group EBIT beat consensus by 10%
# EBIT in the most important Aqua division also came in at 10% above consensus numbers
# Aqua production in tons up by more than 20% (most important indicator)
# Cattle business (SJAP) saw >40% increase in production, evidencing that focus on value added processing paid off and company expects it grow more (important for value of rest of SIAF when Aqua spun-out)
# company saying that they have started to consolidate Aqua assets into subsidiary Triway – meaning that Aqua spin-out is getting closer
# SEC filing says Aqua company will have one single share class (good Norwegian corporate governance)
# 1.2m more postlarves stocked in Mega Farm during March
[# New big-20 auditor signing off on the annual report kills the argument there is something wrong with the figures]
Net net, decent results from SIAF. We knew that Q4 was going to be tough due to worse business in eels and import restrictions from Madagascar (98% of weakness comes from here), but company manages to mitigate this well and prawns (the future) was up 50%. Most important news is that roll-out of Mega Farm continuing (will be transformational to earnings) and that Aqua spin-out is happening and that Aqua will be ridded of corporate governance issues that has plagued the company.
I think we should be happy - in my wiew, consolidate rights and contracts in triway first, then spin off and then you will have excellent fundanentals in place for a financing solution securing full speed at the MF.
Given the regulatoric challenges in 2015, we should be ok with this - most important action is on the move, at least that is what I focus on. Its all about the spinoff moving forward. The market will receive this report well in my wiew.
SIAF FY15 numbers out, beating expectations in relevant parts looking at Swedbank.
Important take on the report.
# group EBIT beat consensus by 10%
# EBIT in the most important Aqua division also came in at 10% above consensus numbers
# Aqua production in tons up by more than 20% (most important indicator)
# Cattle business (SJAP) saw >40% increase in production, evidencing that focus on value added processing paid off and company expects it grow more (important for value of rest of SIAF when Aqua spun-out)
# company saying that they have started to consolidate Aqua assets into subsidiary Triway – meaning that Aqua spin-out is getting closer
# SEC filing says Aqua company will have one single share class (good Norwegian corporate governance)
# 1.2m more postlarves stocked in Mega Farm during March
[# New big-20 auditor signing off on the annual report kills the argument there is something wrong with the figures]
Net net, decent results from SIAF. We knew that Q4 was going to be tough due to worse business in eels and import restrictions from Madagascar (98% of weakness comes from here), but company manages to mitigate this well and prawns (the future) was up 50%. Most important news is that roll-out of Mega Farm continuing (will be transformational to earnings) and that Aqua spin-out is happening and that Aqua will be ridded of corporate governance issues that has plagued the company.
We should be pleased given the fundamentals and the regulatoric challenges we've been facing in 2015.
I meant with today's share count, 700 000 corresponded to 7 000 000 retired shares at that time.
Solomon diluted shareholders in the Ironridge deal. He than gave up about 700 000 shares to compensate shareholders if I remember correctly. I believe It was back in 2010... Don't have time to check it now though!
That is true but this will not be the case in the spinoff.
At least that is the no 1 segment for most of us.
That set up will also be the ultimate proof of credibility that
Solomon can do. If he would hesitate to get the corp gov straight in
the spinoff, it would be a totally different story. But I see no signs of that
as of now, on the contrary.
There has actually been quite a lot of actions lately. The PR is obviously not intended as new information to well informed shareholders at this forum. It's part of strategy to educate the marketplace about what is going on in the company. Dr Ostrowski attending and speaking in Norway followed by a lot of "one on ones" is telling/educating the same story. Everything is setting us of for the spinoff and the apparent need to raise capital following that action to ensure full speed ahead.
When the spinoff is a fact and Corp gov issues are solved within the Aqua segment. One share class, new board, normal Corp structure for a listed entity that's when we will have the shareprice movement. This will also increase credibility in the rest of Siaf. Right now nobody seems to want to take the bet before this materializes. My best guess is still that the spinoff will happen, since there are to many strong shareholders actively pushing for this for it not to happen.
I don't think the problem lies with the auditor. Its rather about how much time SIAF requires to get the "accounting" in order for audit.
As I have understood it, the challenge lies in optimizing and getting integrated system in place between SIAF and Jvs and the other unincorporated companies.
The other problem is our organisation, where everything still pretty much runs through Solomon and he only has 24 hours per day and that hasn´t changed since last year...:) Therefor I think our limitations more are organizational and structural when it comes to the reporting systems and the lack of integrated communication solutions when it comes to the financial reporting.
On the other hand its nothing strange about the time required for the annual report. Another thing is quarterly reports, where we should be able to be faster in my opinion.
I think it would be one thing if the just reported quarterly but they are actually reporting audited results.
Audited results usually comes in later for a lot of big and serious companies.
I didn´t notice before that the fact that they now are a accelerated filer gives them a couple of weeks less to file the annual report. My bad! If they would need the same time as last year they should need approximately another two weeks to finish the work this year, requiring an extension. Given all thats been going on since year end. I don't think its realistic to expect them to on top of everything else be able to finish the annual a couple of weeks faster than last year. But I think they should be able to do it with the same amount of time as last year.
Since we entered the Merkur market facts are that we got some great coverage and that we have gotten some major new shareholders onboard. This means that we have more competent people using and accessing their resources to help push SIAF in a shareholder value creative direction. This is being done as we speak in Norway through the communicated focus on carving out the Aqua culture business.
The aim is to list our Aqua segment on the OSE. Last week was a great step towards that goal.
Dr Ostrowski, Mr Bertil Tiusanen and Mr Erik Ahl were presenting the company, having many one on one meetings with brokers, analyst and corporate representatives of different relevant financial institutions and of course giving interviews that has transformed into interesting articles.
Awareness is growing about RAS and how SIAF is putting this technique into use. This is all being done in the Norwegian market place. The biggest market for fish industry in the world. To be present on the Merkur market is increasing awareness and giving potential investors an easily accessed unmanipulated electronical stock exchange plattform to manage this investment opportunity. On this "roadshow" in Norway the company has really taken the opportunity to educate analysts brokers and corporate representatives. That is building credibility in our business model which is highly relevant since its creating the essential and basic fundamentals for both long term financial solutions in this market and of course the coming listing on OSE.
I don't think you are stupid, you just want to manipulate the market in a direction that serves your interest which is pretty clear to most people following this forum. In the recent 6 months a number of capable and highly successful investors has both visited the sites in China and after that taken som major positions in our company. On our investor tour I had the honor to meet Mr Björn Myrseth, an extremely knowledgable person with great credibility in the industry. He liked what he saw and he has later accepted to enter the BOD (as we could read in the Intra fish article the other day) when the Aqua company structure is set up. All of these factors will mean a lot for our credibility and I know you realise that to of course even if it does´s serve your purposes to admit it.
Most of this has started with the intention and dedication from the company to adress the Norwegian market..... so you can laugh all you want. But the rest of us shareholders, that are not shorting or having as a greater goal to hurt Solomon or the company, we are smiling but for totally different reasons than you.
We are not blind to the obvious progress made right now by the company in the fish industry in Norway.
Assumptions, assumptions and guess what... more assumptions....
The pace of construction is pretty much proportional to the financial
solutions the company can get in place.
The future will tell, speculations not necessary, especially from you since you don't stick to the facts presented by the company in the recent PR and the now public presentation by Tony.
I would say Petrejus have very good reasons to maybe be surprised on the positive side in the future if offensive financial solutions will be presented.
But then again we don't know that. The only thing that we no for sure is that major stakeholders don't want to wait longer than necessary for shareholder value to be created and that they are working/helping with the intend to make it happen asap.
Great video! Bra jobbat!
So true, well put!
When you are a selfmade billionaire (like Fredly) by investing in the stock market, you are per definition a great investor. In todays paper "Finansavisen" he says: the company is "ridiculous cheap". Whos advice will people likely to take, yours or his.... He has been to China aswell to educate himself at the same time as he has a staff of people to support him in his decisions. Humble yourself, please!
Your speculation on the auditor is ridiculous as usual, the only indication we have when it comes to our new auditor is that they bring increased capabilities and credibility to the company for us to be better prepared for the growth to come.
We have been suffering from a "to good to be true complex" for a long time. The companies that you are referring to...... that are supposed to be 5 times cheaper at the same time as they have lower risk, one can only imagine what they suffer from but that is of course an discussion to be had on a different forum. The only take one can get from that statement, is where you are currently invested.
Today we can enjoy good news and awareness spreading through the market. Hopefully this article will get some writers going in Sweden, now when they don't need to be the first ones to "hausse" the company. Its the same thing with writers as with investors, nobody wants to be the first one to risk make a fool of themselves. There will be much easier for them to write now with the back up from the Intrafish article and today the very positive article from Finansavisen.
The comparison with Marine harvest production will work out great and create a lot of interest going forward and its also an exiting topic to dive into for different papers. IR has an exiting job now to use the coverage lately to push others to write pieces and continue to educate the market/industry on our project and unique use of our technology.
Exciting times indeed. So be happy for us shareholders RD. Today is a good day.
No it does´t say anything about him becoming chairman in the original norwegian version.
It also actually says that he is waiting for the Aquaculture company set up before he will join the board of that company. Hopefully Solomon can accelerate that process when he has finished the work with the annual report. There is no doubt that a man like him would bring a big portion of credibility to the Aqua business. That he is being interviewed together with Dr Ostrowski is also a step in getting our CSO in a position where he will be the "king of RAS", the go to guy when papers wants to explore "the paradigm shift" that our RAS and partial harvest concept of Prawns represent.
Mr Myrseth was present on the investor tour in september and made a extremely knowledgable impression to say the least. His experience is truly great and he is very highly regarded within the industry.
It was also clear that Solomon treated him with the greatest respect.
He can also be observed on some of the pictures on the website for the observant one. Me and Vilgot also made an interview with him at the end of the trip about his impressions of SIAF and mainly the Aqua business. I will try to make it public now since the article is out and we all can read that he has accepted an offer to join the bod even though he is in a waiting mode. The interview, by the way, was done by me and Vilgot on our own initiative. Its not professional so you will have to bear with the lack of quality at times.
What is your problem RD:
We have met with Dr Ostrowski.
The designed capacity per tank is 2 million fingerlings according to the PR.
Right now we are stocking 600 000 fingerlings per tank, according to Tony this is 60 percent of what Solomon historically has stocked. And he has historically stocked 40 percent of designed capacity. All according to Tony. This is a level that Solomon has been very comfortable with when he has made his deals with partners etc. There has been no risks of not delivering what he has promised at the same time as the cashflow has been good enough. He has´t pushed the limits of his production. This was also implied by Tony many times during the investor tour. There is still a lot he can do to increase and optimise production in many different ways. There is just no need to focus on that since we are not even getting the production and business we actually have valued even remotely close to what the actual return suggests. First credibility and delivery on what we actually have got ready now. A good way to go about it, in my view by the way.
This fact mentioned by Vilgot was an explanation he got from Tony after the presentation.
There will likely be a recording public soon from the presentation in Stockholm and there will likely also be a audio file from Tonys presentation in Bergen. Vilgot has spend hours with Tony both in Stockholm and on the investor tour so maybe you should treat him with some respect. He is one of many that has invested both his time and money to get his facts straight. I suggest you do the same instead of hiding behind your computer guessing, assuming and judging everybody involved.
After biofilters are ready, which takes 3 months, the plan is to increase the stocking to, 1 million per tank.
That would be half of the communicated designed capacity. The figures in slide 16 is not made up to be a theoretical comparison with salmon, as you suggested in an earlier post. The numbers are made up to simulate the actual production as it would be with a stocking level of 600 000 fingerlings per tank when they are in a position when they can fulfil the partial harvest concept within this first stage. This information comes straight from Tony. He is currently working out of an office at the MF so I guess his got it pretty well figured out, how they are going about the coming production when all three buildings are finished. Everybody can misinterpret facts, but at least some of us got some actual information from the people involved.
Tony has spend days in the nordics explaining the RAS concept and the partial harvest concept that goes with it and all the different opportunities SIAF has to capitalise on this in the different stages. There are interesting opportunities that has´t even been commented here on this forum.
So can you please just hold your breath for a while. You are constantly simplifying and now you are implying that everybody including Tony is wrong. There is a lot of things that you don't get since you don't have the full picture. And you never do since you don't make it an habit to find out the truth, you seem to feel that your assumptions will do, but they lead you wrong all the time. And the worst thing is that there is a lot of people in here that actually listens to you.
Cannibalisation is not a problem when you have a partial harvest concept. As long as you keep the prawns pretty much the same size they all grow very good. Its important that the bigger prawns are sorted out since they can otherwise dominate the other prawns in a way that is negative for the growth.
Just another aspect of the partial harvest concept.
Almost:) they sell after stage 2,3,4.
I would say; introducing and marketing the company to the market. When brokers and analysts gets the picture of course this highlights the investment opportunity and the challenges as welll. In my world it's great so potential of value increase is greater than the risk that follows with the challenges. It's a great risk/reward case and I think most analysts will come to that conclusion when they get to know the company in meetings like this.
Bertil is also attending the one on ones with Tony and Erik.
So there is some additional power there. A very strong and credible trio in my view.
Super great that there has been so much interest and positive response.
Of course they add new prawns every 3,5-4 weeks but they are coming fr.o.m. the earlier stage.
They retstock the first 36 fingerling tanks 14 times a year.
The question fr.o.m. the beginning was if the 36 fingerling tanks were stocked with 600 000 fingerlings to reach a partial harvest volume of 6 000 tons or if it was 2 000 000 as RD said. It's pretty obvious that they need a lot more than 36 tanks going to perform the partial harvest concept. Where would they otherwise put the prawns when they move them from stage to stage. RD understands this to but can't admit he was wrong due to prestige, it's just sad and it doesn't bring clearity to this forum.
I will make sure to ask Dr O to elaborate further on the meeting in Stockholm today. Or maybe I should ask him to call RD so he can explain the business to him...,
Well it's not like you are adding new prawns in each stage when you calculate production. If that would of been the case in the example, there would of course be a subtraction. But this is not the case. Everything is as normal, RD has just assumed parameters that is wrong just to be negative when the PR in fact had some great news regarding potential production.
There is nothing strange and Dr O doesn't seem to have any problems with the math either. You start with 600 k, partial harvest after stage 2,3,4. After each stage there are less prawns but bigger ones left and the only thing counted us the prawns being sold of course.
We all no that the prawns sold as river prawns after stage 2 doesn't bring the same price per kg but I guess that shouldn't be anything new to anybody.