Great opening again today and with the fantastic response from the SPP, I cannot any reason why we cannot again achieve the .04 level again.
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New shares are up on Computershare site....I've got 'The Clash' song.... 'Should I stay or should I go now' ringing in my head!
I see mine are there, I think I will hold and hope it clmbs back towards 4c, a chance I might double my money over next month or 2.
I'm holding a third and have just sold two thirds. Once people get holding statements I expect there will be another selloff - tomorrow and Monday...then it's buy time again.
BC
Yes, I was picking it to drop further but then it plummeted 20% in yesterday afternoon's trading...which looked a bit suspicious given that the new issue was meant to be allocated after market close...and so it was unlikely to drop another 20% today. The sell-off first thing this morning was not very aggressive which is a good sign that people see value in holding their share of the company. Support is building nicely at 1.9c - let's see if that holds once holding statements arrive in letter boxes. Me thinks it could yet drop to trade at 1.8c. Waiting in the wings.
BC
new Edison research into Seadragon. Suggests a DCF valuation of 2.7c. Can access here (after free registration and login):
http://www.edisoninvestmentresearch....pany/seadragon
I do think there is considerable upside from 2.7c though.
Great news as many had questioned ongoing supply...
10/03/2014 09:13
GENERAL
REL: 0913 HRS SeaDragon Limited
GENERAL: SEA: SeaDragon signs significant raw material supply contract
SEA: NZX and Media Release
10 March 2014
SeaDragon signs significant raw material supply contract
Agreement overcomes historical supply constraints
Australasia's largest fish-oil refiner SeaDragon (NZX: SEA) announces a new
raw material supply agreement has been signed that will underpin its
Nelson-based squalene manufacturing operations, and enable the business to
seek new market opportunities in the pharmaceutical and cosmetic sectors.
SeaDragon has entered into an unconditional agreement with Pescarias Cayon &
Garcia LDA for the supply of shark livers and shark liver oil to be landed in
August and October of this year and in January of 2015.
The shipments will deliver quantities more than sufficient to cover the
squalene production SeaDragon has budgeted for in the 2014 calendar year and
beyond. The prices SeaDragon will pay for the shipments are linked to the
squalene content of the material and are internationally competitive.
The agreement, also envisages SeaDragon acquiring further raw material from
Pescarias Cayon & Garcia in the future.
SeaDragon Chief Executive Ross Keeley said: "The agreement locks in raw
material supply for the immediate future, overcoming the shortages that have
historically constrained the growth of our squalene operations and limited
sales activity into new sectors such as cosmetics and pharmaceuticals".
"This agreement will ensure the success of the existing squalene business and
will further strengthen our position as we prepare to expand our Omega-3 fish
oil activities. Our existing shark liver refinery will now be able to be run
at full capacity for at least the next 12 - 18 months."
The high volume of squalene will also enable SeaDragon to launch an
Alkoxyglycerol product onto the market. Alkoxyglyercols are found in the
co-product when squalene is fractionated and removed from shark liver oil.
There is a growing international market for these compounds, with a variety
of proposed health benefits.