Aquatic Food Share Discussion Threads

[colin12345678] 09/8/2016 12:04

bumpylane
Posts: 73
Observation
Opinion: No Opinion
Price: 16.00
RE: Agm19 Jul '16I went to the AGM.
No Chinese management there. Just the NEDs Jonathan Quirck and Richard Sweet. Quirck chaired.
Not that many investors but we haf a useful discussion about the company.
An Irish investor who'd come over specially asked a lot of detailed questions about the company's operations, and about current trading and margins. NEDs said they couldn't comment as the company was in closed period. This investor was in the fish business, and definitely knew a lot about AFG's ops/markets. He thought the debtors figure was high..
I criticised the corporate governance - in particular why was there no new CFO appointed after 6 months?
Lots of blustering and apologising in explanation. They said they had been trying hard, but getting the right candidate v difficult, bla bla. But suggested they were almost there.
I said that no CFO in place put out a terrible message to investors. They agreed.
I asked why no Chinese board members present. They said they'd advised them not come now. Better to come later this year or next and attempt a relaunch when market is more favourable, cfo appointment made, Brexit turmoil diminished.I think that's quite sensible.
I asked about board's commitment to London listing. They said company was committed to London listing.
I said I appreciated NED j Quirck buying shares - £40k's worth according to my calcs.
He said he'd bought them because he thinks they will rise, not from duty.
He said the value of the listing to AFG is because its suppliers are mainly outside China, and it gives the credibility with these suppliers.
I'm reasonably encouraged by this meeting. If this company can remain listed it will do well.

[someuwin] 09/8/2016 11:06

New CFO today from West China Cement (valued at £375m)

Options granted at 50p.

AFG valued at £14m @ 12.5p

Cash £39m

Revenue £102m

Profit AFTER TAX £14.6m

EPS 12.9p

Dividend of 1.4p this year

[cottoner] 09/8/2016 09:18

From final year results have contracts with fishing related companies from the major Scottish North-East fishing port in Peterhead.

' As announced in the Q1 trading update, due to increasing popularity of British and Scottish fish products, the Company's sales of mackerel in the period in China increased by 10% on the previous year. To help satisfy this demand, the Company signed a US $850,000 purchase contract with Peterhead based supplier Northbay Pelagic in February 2016 for the supply of 615 metric tonnes of Atlantic Mackerel per annum. Since then, two further purchase contracts for mackerels, including a contract with Scottish based supplier Lunar Freezing & Cold Storage and a contract with Seychelles based supplier Flying Fish International has been signed.'

Northbay Pelagic Ltd - Kirk Square Peterhead

Lunar Freezing & Cold Storage - East Quay, The Harbour, Peterhead AB42 1JF

[someuwin] 09/8/2016 08:52

I'm starting to think this might actually be a genuine company after all.

Certainly getting the CFO from West China Cement Ltd is a big positive.

(And if AFG is the real deal - then it is extremely cheap!)

[someuwin] 09/8/2016 08:01

Aquatic Foods Group Plc

("Aquatic Foods" or the "Group" or the "Company")

Appointment of Finance Director

Aquatic Foods Group Plc (AIM: AFG), a leading Chinese marine foods and seafood processor and producer, supplying to export and local markets, is pleased to announce the appointment of Ms Po Ling Low as Finance Director.

Po Ling has over 18 years of experience in the corporate finance, audit and investor relations sectors across the UK and Asia. As a Chartered Certified Accountant, Po Ling has previously held positions at PwC (Kuala Lumpur), BDO (Singapore and London), PKF (UK) LLP, and Goldenway Capital, a private equity and financial advisory firm in Beijing. In 2008, Po Ling became CFO of West China Cement Limited (HKEx: 02233), which had previously been listed on AIM before moving to a Hong Kong main board listing in 2010.

Po Ling will sit on the main Board of Directors of Aquatic Foods and its AIM Compliance committee.

Pursuant to her service agreement, Ms. Low has been granted a total of 500,000 warrants over Ordinary Shares and are exercisable as follows:

200,000 warrants exercisable at 20 pence whereby 40% (80,000 shares) are exercisable after the first anniversary of the Service Agreement, 30% (60,000 shares) are exercisable after the second anniversary of the Service Agreement and the remaining 30% (60,000 shares) are exercisable after the third anniversary of the Service Agreement;

150,000 warrants exercisable at 35 pence whereby 40% (60,000 shares) are exercisable after the first anniversary of the Service Agreement, 30% (45,000 shares) are exercisable after the second anniversary of the Service Agreement and the remaining 30% (45,000 shares) are exercisable after the third anniversary of the Service Agreement;

150,000 warrants exercisable at 50 pence whereby 40% (60,000 shares) are exercisable after the first anniversary of the Service Agreement, 30% (45,000 shares) are exercisable after the second anniversary of the Service Agreement and the remaining 30% (45,000 shares) are exercisable after the third anniversary of the Service Agreement;

Each warrant entitles Ms. Low to subscribe for one new ordinary share of nil par value in the share capital of the Company at the prices and subsequent to the periods set out above.

Li Xianzhi, Chief Executive of Aquatic Foods Group, commented, "I am pleased to welcome Ms Po Ling Low to the Board. Po Ling brings significant financial and commercial experience as well as an understanding of Chinese markets having worked in China and South East Asia for most of her career. Her AIM experience at West China Cement Limited, now listed on HKEX main board with a market capitalisation of approximately GBP375 million (HKD $3.80 billion), will be strongly relevant for assisting Aquatic Foods to execute its growth strategy.

"Aquatic Foods is confident that Po Ling's appointment as Finance Director will be invaluable to the Company as we continue to improve our operational efficiency and expand in both the local Chinese and international markets. Ms. Low will also be fundamental in building and developing the Company's international investor audience."

This announcement sets out the disclosures required pursuant to Schedule 2, paragraph (g) of the AIM Rules for Companies.

Po Ling Low, aged 41, currently holds or has held the following directorships and partnerships in the last five years:

Current Directorships Past Directorships
Oxygen 8 Limited West China Cement Limited

[maytrees] 19/7/2016 12:01

Spread now back to an absurd 22%+ but at least the share price is currently heading N.

[maytrees] 19/7/2016 10:35

Greetings Rope1958

The spread has improved slightly but still at 17%+ so hardly attractive.

On the other hand only few buys seem to send the share price N quite speedily.

I hold and have added - dyor.

[rupe1958] 12/7/2016 15:18

An amazing intra-day spike. Just looked at the trades for today. Went up to 20p this morning, then fell back. The thing to look for a is a falling offer price. If you see it coming down, then snap up some some shares. The spread as I look is an unappealing 11-16.

I don't think there has to be a specific reason for the bounce up from the 6p-8p range a week ago. It's a mixture of things - investors overcoming fear, or forming an opinion that it has bottomed out, etc etc. Also, some investors may be buying for the dividend (10% if you can buy at 14p).

Although volume is a lot better than it was, it's still very low. It's going to take a long time for any smaller Chinese company to get the confidence of the market.

Personally I see this as at least a 2- year hold, and my target is a return to the IPO price. In the meantime there is a good dividend, which has plenty of scope for increase. The annual divi payout, although about 14% now, only distributes about 10% of net profits.

[apfindley] 12/7/2016 14:28

Ah that's a nice spine this morning.Shows how well it reacts to a few trades as availability is tight.The same applies to GWMO which reacts similarly. And it's moving fast since I told you about its potential.

[maytrees] 12/7/2016 11:32

An apparent sell of 1 share followed by the offer share price being increased to 17p. RNS due perhaps?

[shwetal] 12/7/2016 10:40

Since it got listed, the share price fall has continued until the recent bounce back for last few days.What could be the reason, having said the strong demand in Fish Market !!!

[rupe1958] 12/7/2016 09:58

maytrees - I don't think it's fish shortages! More likely stock shortages on the market maker's accounts. Not that I'm any great market expert, but it looks as though the market makers got caught napping this morning, and panicked. They pushed the offer price right to stop buyers, who then paid way over the offer.

Will these rises hold? All depends if sellers appear. Until the bid price is quite a bit higher I think most holders will hold on. This is still v cheap. IPO was at 60p.

AGM next Tuesday. Ex-div 26/8.

[maytrees] 12/7/2016 09:46

Good morning Rupe1958 and blomers

Being a novice in fishing companies I am amazed at the 50%+ jump in the share price this morning - so far at least - especially after the huge rises (hit 60% up at one point) of yesterday though as I type the share price today has fallen back to only a further c.30% up.

Is news expected or is the share price gain being caused by investors being aware of fish shortages?

[blomers] 11/7/2016 18:15

I spent a long time looking at this over the weekend, scratching my head and trying to decide whether to pluck up the courage to buy more.

I bought at 35p before I was aware of the past history from some Chinese AIM companies, because this looked really exciting and stupidly cheap. Watching the price plunge to 10p has been very depressing, but I held onto the hope that if this company is for real, 35p will one day seem like a bargain.

The thing that sparked my interest over the weekend is that after months of practically no trades, apart from the occasional welcome purchase by a director, there was a lot more activity last week, and some big numbers. The problem was, most were showing as unknown.

It made me think something was going on, but I couldn't tell what. Unfortunately I didn't top up, so missed a chance to undo some of my loss, but as each week goes by I'm feeling less worried about the possibility of AFG de-listing and more hopeful this company could be a good investment.

[rupe1958] 11/7/2016 16:49

Maytree - no problem. It's good to have someone else take an interest in this one. Great day today. Still not many buyers about, given how cheap it appears to be. We rose about 60% today on £30k of transactions.

One of the NEDs has spent about £40k on AFG shares in the last 6 months, starting at 28p.

Also, I was looking at the archive of the Investor's Chronicle yesterday and that magazine had AFG as a 'hold' in May 2015 at 45p (from memory).

[maytrees] 11/7/2016 16:18

TX Rupe1958

Very interesting.

[rupe1958] 11/7/2016 15:39

maytrees - there are only 2 market makers, and it could be there have been a few buys and they have found themselves a bit short of stock so have pushed the offer right up.

The fundamentals look amazingly cheap with this company, if they are to be believed. But as it is a small Chinese company on AIM there's a lot of scepticism. I guess that's how a company making £25m a year ends up with a market cap of about £10m.

The AGM is next Tuesday. There may be a bit of buying before that. There might be a trading statement, and the company might announce the appointment of a new CFO.

I like 2 things here: (1)non-exec director buying in reasonable quantity over the last six months and (2) AFG is one of the biggest buyers of mackerel from companies based in NE Scotland. Over 1000 tonnes per year. That's verifiable and makes me think that this outfit is for real.

The downside risk is that the company might decide one day to de-list (requires a 75% vote) and in that situation the minority shareholders can find themselves holding shares worth nothing.

[apfindley] 11/7/2016 14:58

meanwhile, take a look at GWMO Great Western...
HIGH Levels Of copper-gold Mineralisation























GWMO


.

[maytrees] 11/7/2016 14:12

Good afternoon

I bought a few AFG earlier today as it seemed a good buy but the share price gain of nearly 40% now seems a little surprising. Is news expected or is this just a co which has been undervalued for too long?

[rupe1958] 01/7/2016 12:29

Ignore the spread. It just means the price is wrong. Probably too cheap in this situation.

The worry here is that the Chinese management behave like the management in so many other Chinese companies that were on AIM. I can completely understand why no-one would invest in it for that reason. There's an appalling track record.

But the NED buying is encouraging. And if management is respectable, this is the bargain of the century. But that's a big 'if'.

[wstirrup] 01/7/2016 12:09

tbh, Except for the spread, tempted to top up myself given I only have a few.

W.

[wstirrup] 01/7/2016 12:07

Given how cheap he got them... 6.75p... HOW did he nix the spread, which has been commented on here with monotonous regularity?

W.

[cottoner] 30/6/2016 20:13

He's bought several times.

[rupe1958] 30/6/2016 14:49

Interesting to see a director buy here.