NZK - NZ King Salmon

[Recaster]

Looked at the interims back in early Feb. Massive negative EBIT and a 13.5 mn forward contract closure producing a positive operating cash flow when it would have been negative.

Put the unrealised gain on biologicals $30.7 mn further down the revenue statement.

Fish deaths are way up apparently which is why even though GAAP allows it you don't put unrealised gains on biologicals above the EBIT line.

The signs were there.

The announcement points out positive pro forma EBITDA. This is really a nonsense measurement IMHO although it's popular (for obvious reasons). Depreciation is real.

Will have the annuals' analysis up a few days after they publish the financial statements.

In the mean time here's Feb's very basic interim analysis:

https://recastinvestor.substack.com/...aland/comments

[winner69]

$60m to be raised ..... 2.85 for 1 at 15 cents

Says TERP is 33 cents (last close 86 cents)

Seems pretty desperate stuff

Maybe a punting opportunity coming up

[percy]

$60m to be raised ..... 2.85 for 1 at 15 cents

Says TERP is 33 cents (last close 86 cents)

Seems pretty desperate stuff

Maybe a punting opportunity coming up

Take care,you do not want to end up dead in the water too.

[Entrep]

First decent bid at 50c.

[Rawz]

First decent bid at 50c.

LOL - love the gif

[iceman]

I don't think the problem for NZK are low demand or low prices ...

Of course not. NZK has been a disaster in the making for several years and record market conditions make little or no difference. This has been uninvestible for several years.

[Joshuatree]

And yet Craig's kept picking it!

[nztx]

$60m to be raised ..... 2.85 for 1 at 15 cents

Says TERP is 33 cents (last close 86 cents)

Seems pretty desperate stuff

Maybe a punting opportunity coming up

How do reckon this one would fly if someone taped wings on it ?

or if Robbo could find a half full pot somewhere to give it a large loan it could never ever hope to pay back ..

[Recaster]

They actually lost around $114.5 mn for the year and then mitigated this with a $41.3 mn unrealised 'fair value gain' on biological assets (fish).

Subtract off a tax credit (might never be used) of $14.4 mn and we're looking at a loss of $128.9 mn.

A total blood bath in other words.

Another forward contract early closure to bail out the operating cash flow. How does that work I wonder? Seems to come to the rescue every reporting period.

Jarden's are underwriting. Can't find any information on their fee even in the offer document. I bet it's huge.

Rights at a record discount to heads at 15 cents.

Receivership might be a better option.

[Balance]

They actually lost around $114.5 mn for the year and then mitigated this with a $41.3 mn unrealised 'fair value gain' on biological assets (fish).

Subtract off a tax credit (might never be used) of $14.4 mn and we're looking at a loss of $128.9 mn.

A total blood bath in other words.

Another forward contract early closure to bail out the operating cash flow. How does that work I wonder? Seems to come to the rescue every reporting period.

Jarden's are underwriting. Can't find any information on their fee even in the offer document. I bet it's huge.

Rights at a record discount to heads at 15 cents.

Receivership might be a better option.

Receivership?

No wonder NZ as a country has completely lost control of the banking & forestry sector into foreign hands.

All short term thinking.