Aquatic Food Share Discussion Threads

[brwo349] 13/11/2016 14:50

Miracle Yap non-exec director. Where have I heard that name before. Oh yes, Camkids.

[brwo349] 13/11/2016 14:36

galeforce
I now believe that any Chinese businesses that subsequently list on AIM are frauds. That should be the default position of all investors. Why? Because no-one with a great business would list on AIM after seeing the financial carnage wrought on these companies. If you were a Chinese businessman who owned a great, profitable business would you try and get it listed on AIM. Absolutely not! Therefore there is only 1 conclusion here.

[galeforce1] 13/11/2016 09:55

BRWO

Oh dear, you seem to have a real bee in your bonnet about this one!

But all input is welcome, even if it's a bit one-sided.

The mackerel contract is with 2 Scottish companies - Pelagic in Peterhead and Lunar Freezing of Frazerburgh. Combined, these are for over 1200 tonnes of mackerel a year, and this represents more than 1% of AFG's turnover. 1200 tonnes of mackerel is hell of a lot of fish. In fact, AFG is one of the larger customers for Scottish fish. The wholesale price of mackerel is around £1200 a tonne, I believe.

This is a decent, solid business. If you think China is systemically corrupt then don't invest and take a look at something else. There are lots of great UK companies to invest in instead. Pity that so many of them are up to their ears in debt, pity that they may be about to leave the Single Market, but there you go. Some investors are more comfortable investing close to home, and I can understand that. Chinese companies on a PE of 1 are not for everybody.

[brwo349] 12/11/2016 17:54

hxxp://www.shareprophets.com/views/18767/aim-china-fraud-aquatic-foods-chinese-water-torture

[brwo349] 12/11/2016 17:49

hxxp://www.shareprophets.com/views/13734/aquatic-foods-group-plc-yet-another-aim-listed-china-norfolk

Why have the shares crashed, with only good news in trading updates – and, indeed, a ‘know-of-no-reason’ RNS in the face of the share price decline? Why has Mr McLean stepped down from this poster-boy for all that is good about AIM-listed Chinese companies (apart from the share price)? Why is the company trading at a substantial discount to cash, and (at worst) on a par with net unrestricted cash, yet is awash with the stuff in ever growing proportions and company growth is around 25%?

Could it be that as with, say, Jiasen (JSI) nobody believes the numbers? Given the recent history of AIM-listed Chinese outfits, who would take the risk here? Given the lack of action by the FCA, AIM Regulation, the LSE and all the other regulators which could have stepped in over Naibu (it is not as if they weren’t warned) and now the quiet delisting of Sorbic and Gate in the wake of unexplained Nomad resignations, what reassurance is there for investors that this is not just another Norfolk?

Aquatic just could conceivably be the bargain of the decade, but as with Jiasen which currently trades on a discount to (claimed) cash of about 80% and sitting on an historic yield of 80% plus, who would take the chance? Are the numbers presented just codswallop, shoal upon shoal of red herrings presented by a shiver of sharks? (ok, enough cheap fish gags…)

But In the absence of the LSE showing any sign of taking its responsibilities seriously (other than to grab as much money as possible in the short term, and allow the crony capitalists to do the same) this has to be yet another AIM-Casino China bargepole stock.

- See more at: hxxp://www.shareprophets.com/views/13734/aquatic-foods-group-plc-yet-another-aim-listed-china-norfolk#sthash.yGf5joqp.dpuf

[brwo349] 12/11/2016 17:36

There is the other obvious question. Nearly every Chinese stock that lists in London has been a financial disaster for shareholders. The shares tend to start falling immediately after listing. So why would any legitimate Chinese business ever consider listing on the London market? Why? Why? Why? If you owned a successful, profitable Chinese company the last thing you would do would be to list on the London markets because you know the company will never be properly valued because of the dozens of previous Chinese frauds. Why not list on the Chinese markets or another Asian market. The reason you list on the London AIM market is because of the light regulation. It's far easier to list a fraud there and it seems there is little risk because no-one seems to get prosecuted. AIMHO. DYOR.

[brwo349] 12/11/2016 17:36

There is the other obvious question. Nearly every Chinese stock that lists in London has been a financial disaster for shareholders. The shares tend to start falling immediately after listing. So why would any legitimate Chinese business ever consider listing on the London market? Why? Why? Why? If you owned a successful, profitable Chinese company the last thing you would do would be to list on the London markets because you know the company will never be properly valued because of the dozens of previous Chinese frauds. Why not list on the Chinese markets or another Asian market. The reason you list on the London AIM market is because of the light regulation. It's far easier to list a fraud there and it seems there is little risk because no-one seems to get prosecuted. AIMHO. DYOR.

[brwo349] 12/11/2016 17:28

27 grand? If Quirk had bought ten times that amount I may take some notice. My guess is this guy is there for window dressing only. I doubt he will know that much about what is really going on. He'll know what he is allowed to know.

The Peterhead contract was for $850,000 which is less than 1% of last years revenue.


Look at Asian Citrus this year. It had been listed for years. It was always very cheap but there seemed to be a perception it was probably one Chinese stock that was legitimate. Lo and behold its now suspended with major discrepancies noted in its financials.

I advise you to check out ShareProphets and their "filthy forty" Chinese Aim stocks.

[galeforce1] 12/11/2016 10:24

Cottoner

At the AGM a shareholder thanked one of the NEDs (Jonathan Quirk) for buying shares and helping to 'steady the ship' at AFG.

Quirk made quite an interesting reply to this. He said "there's no need to thank me. I haven't bought these shares out of a sense of duty or obligation. I have bought them because I believe they are going to make me money".

Jonathan Quirk has a decent holding - 200,000 shares. He has paid £27,300 for them and his average price is 13.7p

[cottoner] 11/11/2016 20:40

One final point from me.

There have been a number of RNSes issued for Jonathan Quirk a Non-Executive Director buying shares.

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 Jonathan Quirk as Senior Non-Executive Director.

Jonathan Quirk has over 40 years of experience in the financial services sector. As a qualified Chartered Accountant, Jonathan previously held positions at Morgan Grenfell and Deutsche Bank in their capital markets divisions. In 1997 Jonathan became a Founding Director of Cairnsea Investments Ltd, an investment company, where for the last 15 years he has specialised in investing in quoted and unquoted small companies, particularly in the financial and natural resources sectors and more recently has focused on China.

[galeforce1] 11/11/2016 20:33

Brwo

The contracts for mackerel with 2 different Scottish companies accounts for much more than 1% of turnover.

I haven't got time to look up the details now, but will post over the weekend.

Great to have your input. Doesn't matter that we disagree.

[brwo349] 11/11/2016 19:50

galeforce1
This is exactly the same fraud as Naibu, Camkids and the rest. We've seen it all before many times. It does not seem to stop people thinking that this one is different. There is a small real business here but nowhere near the size being reported. The guys at the top, the criminals, are the ones publishing these financials which are frankly comical.

[brwo349] 11/11/2016 19:47

cottoner
That contract with the Peterhead company is for less than 1% of the stated annual revenues. It's peanuts. I don't deny there will be a legitimate, very small underlying business here but the financials are fictitious. Revenues, profits, the balance sheet are all fabricated. Of that I am 100% certain. The reason I know that is because of the share price. Insiders would be re-mortgaging their homes to buy shares at anywhere near this price.

[galeforce1] 11/11/2016 18:42

brwo

I can completely understand why you think that. The company is crazily cheap. The first reaction of any investor has to be 'there's something wrong here'.

But after looking at this company for more than a year, attending the AGM, checking out its UK fish suppliers, talking to the NEDs, etc, I'm convinced this company is for real and its accounts are genuine. It's definitely NOT a fraud.

Whether the chairman and CEO are honest people I don't know. And that's the real risk here - that if they behave like the management of Camkids and Naibu and various others, then investors get shafted.

But in view of the embarrassing scandals in 2015 of Chinese companies on AIM, and the dim view that the Chinese authorities take of them, I think the danger of those things being repeated now is quite low.

But I completely understand that this kind of investment is not for everyone.

My target is the IPO price, which was 65p. But even that would be very cheap.

I like the fact that the CFO comes from West China Cement, one of the most profitable small company investments I've ever made. There's no way that a CFO of this calibre would have taken a post in a 'fraud', putting her whole career at risk.

[cottoner] 11/11/2016 18:41

So, if it's a fraud are those contracts listed below (inc with specifically named Peterhead companies) made up?


As a result of increasing popularity of English and Scottish fish products and to satisfy this increasing demand, the Group has entered into the following new contracts with English and Scottish based suppliers:

a US $850,000 purchase contract with Peterhead based supplier Northbay Pelagic for the supply of 615 metric tonnes of Atlantic Mackerel per annum.
a contract with Scottish based supplier Lunar Freezing & Cold Storage for the supply of 575 metric tonnes of mackerel
a contract with Seychelles based supplier Flying Fish International for the supply of 162 metric tonnes of mackerel

[brwo349] 11/11/2016 17:06

It's a fraud guys. There is no doubt about this. Legitimate businesses are never as cheap as this. The same fraud has been done a dozen and more times on AIM over the last few years. The accounts are a work of fiction and having read today's statement I do not believe a single word of it.

[futuredlighter] 11/11/2016 16:17

Just need some confidence

[futuredlighter] 11/11/2016 16:14

Yes. All good Still believe that there is money to be made here. Have a target of 24p Good luck

[galeforce1] 11/11/2016 16:05

Future

It's interesting to look at the option package awarded to Lo Ping (the new CFO) when she joined AFG from West China Cement in August this year. She was given 500,000 options in total, exercisable as follows:

200,000 shares at 20p
150,000 shares at 35p
150,000 shares at 50p

That's encouraging, I think

[futuredlighter] 11/11/2016 13:11

you said it gale

Chinese fall out but it also think the risk/reward here is top drawer.....

the spread is a real put off but there are not that many shares on issue...relatively speaking

I just think a run of buys and this would bag very easily for early entries taken

I have read and followed up ...i really like it.

a strong buy for me good luck

[futuredlighter] 11/11/2016 10:33

am i missing something obvious here....

51M in the bank cash mcap of just 15M

Strong sales / turnover

?????????

[mister md] 29/9/2016 08:31

Just look at the shareholder register and see if any reputable large investors. Reminds of RCG, NBU, etc Bid Offer spread also hints at something not being quite right here. I'm sure newbie investors will have a punt but others will not touch it. Seen the dividend thing before too, pay out a nice dividend to build confidence before trading results suddenly become unfavourable... Imho dyor etc

[brwo349] 28/9/2016 18:20

China fraud Aquatic Foods Trading Update: drip, drip, drip - the water torture continues in a sea of Red Flags
By Nigel Somerville, the Deputy Sheriff of AIM | Wednesday 2 March 2016

hxxp://www.shareprophets.com/views/19139/china-fraud-aquatic-foods-trading-update-drip-drip-drip-the-water-torture-continues-in-a-sea-of-red-flags




China Fraud Aquatic Foods - drip, drip, drip the torture continues
By Nigel Somerville, the Deputy Sheriff of AIM | Tuesday 16 February 2016

hxxp://www.shareprophets.com/views/18788/china-fraud-aquatic-foods-drip-drip-drip-the-torture-continues