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Hessi85,
I think Solomon is a visionary and extremely good at operations. I feel confident in his ability to steer the company forward in this regard, but there is also a lot of talk, always has been.
Now, I agree that the overall feeling was good. First time I listen to him IRL, but got a genuine good feeling about his abilities.
As Challe mentioned, he got a bit more quiet and modest in discussion on stock price development, could have to do with saving face, but even here he seemed optimistic. Now, not that this is anything new, but a sort of modest optimism was shown I believe, it really felt like it was something in the air reg. this whole listing thing, even though he could not speak about it.
Now, the last part is just pure speculation, but still like Pareto including them in their Emerging Markets day, especially when we now Pareto covers some Norwegian fish producing companies. What about the Norwegian JV now again? Oh, interesting stuff indeed! But, no explicit information reg. this in the pres
NJM,
I hear you brother. A lot of things has been said and not realized why we've learned to not get head of ourselves and review information provided with duly scepticism, rightly so.
Margin pressure from aussie beef seem credible, but can't help to wonder how, as I also heard (but forgot to mention)what Solomon said about a three to five year plan to restructure the breeding, it is going to be done without loosing on the margins meanwhile. Solomon said in the CC that margins won't be affected, and even though margin pressure never was up for questioning, he seem confident in that we will solve it. I wonder how? Might have to do with these new distribution centers and possibly receivnig a premium price in stores for the "chilled beef", especially through the structures with Tesco/Vanguard. We can only hope for the best here.
We know that they can only harvest a few times a year, but now I remember that he spoke of growing cash crops in order to produce even in low season for the unit.
Just came back from the SIAF presentation.
Overall a good feeling. Solomon was in a good mood and seemed relaxed, had his family with him.
We were given a booklet in the beginning with the usual SIAF stuff, numbers, divisions, revenues, economic outlooks etc.
Instead of a PP presentation Solomon talked about the company's history, it's current position and the future. He held a pretty short presentation allowing for Q&As from the conferencier thereon after.
Here are a few picks of what was somewhat new to me:
Targeting 300 000 head of cattle for SJAP 2017. The big issue as I perceived it with SJAP is human resources. For all slaugther and deboning they are in need of a lot of workes to process that kind of meat and training takes time, something they are lacking atm. But, important here is that he seemed confident in the ability to solve this, possibly through a partnership or similar, even though this was not explicitly stated (own thinking).
Furthermore he was asked about a possible spinn-off of SJAP, something he said would come probably in 2017, but emphasized that the timing needs to be right, value wise.
Reg. the new distribution center, they have found what Solomon referred to as a "white piece of paper", the market of chilled meats. This is a market in strong demand according to Solomon and something we are about to tap into which is right now relatively unexplored. In the new center they will be using a superior refrigeration technology allowing them to defrost meats through static electricity resulting in chilled, still fresh quality meat within 8 or 12 h, something very hard to perform with normal technology. They are then able to hold the temperature at a chilled 0 degrees from the centers to the stores.
More on the distribution center, the center was explained as another "demo" unit, targeting five in total throughout China.
He said that e-markering was a great opportunity here with reference to the strategic locations of the distribution centers.
Moving on to the talk on the Tesco relationship. Seafood is to be added so that Tesco stores can start being equipped with live and fresh seafood. The conclusion was made that the stores running right now are also to be viewed as demonstration of concept. He there and then referred to how manys stores Tesco had nation wide, and more importantly so, Vanguard, which is to be viewed as the ultimate partner.
Reg. the Mega farm. He stated that about 50 % will be prawns, the other half from other fish, eels and aquatic animals.
In terms of prawns he also spoke of the different types they are growing, apparently "glass prawns" takes two weeks faster to grow than the Mexican White or the other one, not quite sure. He stated that glass prawns were the future.
Said the Mega farm would be self-financing after initial investments of the first 200 000 0000 $. Is that even possible?? Would be awesome. But nothing was mentioned on a possible equity stake. Explained our roll as the contractor, nothing else atm. The ramp up of production for the first 2000 MT are targeted to begin in march/april next year.
Reg. the procurement of the 60 MUSD financing for the investors he thought it would be no problem after being able to show amble production at the unit.
Over to the stock. He said pretty straight forward that they wish to leave the US and that they are targeting Sthlm and putting a lot of effort on this. I got a positive feeling from this discussion, almost as if he is expecting positive news soon on this matter.
Moreover they spoke of an possible equity sale of the HU, but this wasn't on the agenda. They were more in the thinking of expanding the Immortal vegs.
He also spoke quite a bit reg. the China-Aussie free trade agreement, but nothing new here, rebranding our cattle breeding with the aim to target the premium segment of the rising middle class.
Madagascar is progressing fine, they are sending a management team down there to streamline and development the imports from there. There he simply said that there are things we can produce better/more cost efficient than them and vice versa why the relationship makes economical sense.
Cash flow positive per Q1 2015 in accordance with the five year plan which has already been commmunicated.
Oh, yeah, almost forgot that the company is working hard on further financing. This made very clear and Solomon stressed the importance of good terms.
Overall a good feeling, especially about what is to come. Solomon seemed confident in that there are good news coming, but could not be explicit.
/R
I'll ask them, hopefully there will be video and audio as it is a pretty big event with a couple of hundred attendants
Interesting. Look at the following article in Bloomberg today:
"The cost of U.S. beef for Japanese meat eaters doubled in the past year to the highest in a decade, eroding earnings as the yen weakened and global prices soared.
The wholesale price of frozen short-plate, the meat used for beef bowls in Japanese fast-food restaurants such as Yoshinoya Holdings Co. (9861 ? 0,08% 1 286,00), rose to 1,081 yen ($9.36) a kilogram last month from 555 yen a year ago, according to Tokyo-based Agriculture & Livestock Industries Corp."
... "Cattle futures on the Chicago Mercantile Exchange have rallied 27 percent this year, the second-biggest gainer among the 22 raw materials in the Bloomberg Commodity Index. (BCOM ? 0,81% 116,88) The price is headed for the sixth straight annual advance, the longest rally since at least 1965."
... "Higher prices haven’t hurt demand for U.S. beef as the appetite for meat in emerging economies grows with incomes, said Kazuhiko Saito, chief analyst at Fujitomi Co., a commodity broker in Tokyo."
Guess the first paragraph regards specials cuts which are hard to generalize price for? Also important with heavy demand from emerging markets. The article further spoke of us beef production down because of earlier draught and that full production was expected to be reached at earliest 2017, which is good news as we don't have a clue if/when the ban of us beef will be lifted or not, hopefully not.
If you want an interesting documentary on the "corruption" of the us food production system, look at Food Inc. really interesting. Another reason why owning Siaf feels like bulls eye in every way possible for the long term if they can get their sh*t together!
Anyone calculated how long the transition took from being dependent revenue wise on those sleepy cods to the scale up of the eel business?
It's like Darwin said, Survival of the fittest, with "fit" referring to "most well adapted to the current environment". Believe SIAFs adaptability in the fishery division is one hell of a sustainable competitive advantage!
Yes, but when will it begin to hit eps accounting wise? Think I remember some posts reg. this a while back?
I know this has been brought up before, but not sure I've seen/remember the outcome of the convertible note funding dilution it results in accounting wise per year? Could someone direct me to post reg. this? Or explain the effect on Eps coming 5-6 years?
Incorrect information earlier.
Hardly, SIAF is one of few exceptions due to the popularity of the stock among customers.
Reg. Nordnet vs Avanza.
At Nordnet you can only trade Siaf online via en kapitalförsäkring without any order depth as it's OTC. Atm you can't trade it online via the two other common account types. If you are at Avanza, think of the cost for calling a broker as well as it costs extra.
With that said Shareville is a new social network for investments at Nordnet with the possibility to look into and follow thousands of private investors. It'll be a really good tool for many!
Finally, depending on how much you trade at Avanza etc, maybe I could fix suitable commissions for you guys, but it is a big maybe. Let me know if any of you would consider changing, and I'll see what I can do
What about the statement reg. the 60 MUSD financing agreement for the mega project "on or before september 30th" what do you make of that? No PR kinda feels like going back to old times again, or do u think they'll announce it late?
Sustainability.com has a lot of interesting articles and studies, there's a recent one on water scarcity "Evaporating Asset. Water Scarcity and Innovations for the Future, August 2014" interesting indeed
Siaf is a special case, you can trade it electronically from all three different account types at Nordnet
Level two please, order soon
Please level 2 anyone, have an order in the market and might try revise depending on how it looks
Tell me about it. Been in the stock for three years, averaged down a few times and now decided to change broker, which was unlucky given the circumstances. Didn't see this rise coming.. How is level 2 looking compared to normally? Heavy buying pressure in low 50s, or does it seem thin?
Did a messy trade, changed broker and got out for a week, now look what happened. What is the reccomendation here? I know it's still cheap, but do you reccon it is a few big buyers right now and we can expect a drawback when they're gone? Or could things be starting to move, looking better than for a loong time now, kinda a feel the momentum in the company is changing but still eager to get back in as cheap as possible
Yeah, could tell but from what we saw on NJM's level 2, there is only one buyer at those levels, rest is around 0.4, what am i missing?
Please keep me posted at level 2 as I've got an order in the market.
My broker can't see more than one level bid/ask.
May be the explanation. Anyways, sent him an email, waiting on a reply..
Why has Jordanfund deleted all their posts of SIAF since 2012??
Jordanfund post today
"SEC in the U.S. today unveiled a Chinese company in the cattle feed industry for cheating in their accounting. Reasons, it wanted to achieve its goals.
When this became known on March 11, SIAFs share price sank(unjustified) -8%. Of course, the companies have nothing to do with each other, but SIAF still gets their portion of mistrust. Hopefully the share price will rebounce in the morning. What happened today was that buyers slipped away while small sell orders pushed the course downwards."
What is your take on the development of the dollar as the worlds reserv currency?
Just a bit worried as we are and have been seeing a number of events decreasing the importance of the dollar. Feel like the situation won't hold for ever with the US piling up debt and continuing to print money. Time to hedge ones dollar positions perhaps?
This is why SIAF can't access financing through the chinese credit system.
In regards to one of the last questions in the CC about SIAF's inability to access financing through the use of receivables as security, I asked one of Sweden's best and most reputable advisor, Frederic Cho, Special Advisor Asia Corporate Finance Handelsbanken for his thoughts on it.
Here's the answer:
"The Chinese banking sector is very underdeveloped and discriminates against small-medium private enterprises because of large state-owned enterprise dominance financed by Chinese banks.
Thus, it is not very likely that SIAF may use their receivables as collateral for financing from any bank. Many Chinese banks do not understand how such can be structured. it may
be that SIAF must turn to the "shadow banking system", borrowing at rates much higher than those of the Chinese banks.
I think that Solomon made clear in the CC that the "shadow banking system" is not an option.
Gives some understanding of the dilemma at least:p
Hi guys!
I'm responsible for JSA Investment Club's stock portfolio in Nordnet's service, 'The challengers and experts' in Sweden. We have SIAF in our portfolio. I personally have shares too, why I'm eager to cover SIAF extensively. I believe Nordnet's challenge constitutes a good platform for spreading knowledge as it has some kind of reach in primarily Sweden but also Finland, Norway and Denmark.
The article discussed here recently got me thinking that a new post is order in the challenge, bringing clarity to these issues directly by addressing them professionally and precise. Therefore I thought I would do a poll, what issues do you personally believe is most important to address in this post?
Sorry for bad English, writing from mobile. Exam tomorrow. Let me know what you think!
Regards
Some interesting information.
SIAF was the second most traded american stock among swedish investors this last month. Came in after Apple, but before Facebook, Bank of America etc.
I guess us Swedes still like it..
Came in late. Is there a file of the CC somewhere?
When is the report for Q3 released?
I'm nervous. Can someone please state why SIAF is real and not a scam? I'm in despair and need help to get over this anxiety to whether it is real or not.
And btw, do someone know what the norwegian partner is called?
Regards.
Missed the CC. What was the overall feeling? And Q&A's, was the answers satisfying? Please post the answers in the cc google.docs, would be glad to see them!
not getting any audio from the CC. Right now it's Q&A right?