SANford Chart

[iceman]

https://whatsoninvers.nz/sanfords-co...-salmon-farms/
New forms of aqua culture are the way to go to feed the worlds appetite for seafood apart from just keep raising the prices for the wealthy .

No question aquaculture is an increasingly important part of seafood protein supply to the World in the future and so is wild fish harvesting.

[Ricky-bobby]

The new CEO doesn’t excite me. Farmlands haven’t returned anything to shareholders for the past 3 seasons... have just bumbling along with no direction

[iceman]

Spoke to a person in the industry yesterday that told me that some of the big fishing companies have up to 20% of their frozen product ready for shipment in recent weeks, sitting in refrigerated containers in storage due to lack of shipping options. That will be chewing into the profit margins !

[Aaron]

Sanfords stock on hand jumped $36,910,000 from $48,558,000 to $85,468,000. $85mill of fish is a lot of freezer space, I hope it has all been sold by now. I guess the $85nill is at cost so using the 2020 margin of 17.6% retail it is $103,723mill or 22% of the 2020 turnover.

Sanford might get worse before it gets better, depends on their marketing department and supply chains. At least they aren't selling quota, I hope. Haven't heard of any plan to nationalise the quota, although as a shareholder in Sanford I would be dead against this idea but as a NZer wouldn't it make more sense for the nation to own the quota and lease it to the private companies to fish. Then the country as a whole gets something for the resource extraction.

[iceman]

Sanfords stock on hand jumped $36,910,000 from $48,558,000 to $85,468,000. $85mill of fish is a lot of freezer space, I hope it has all been sold by now. I guess the $85nill is at cost so using the 2020 margin of 17.6% retail it is $103,723mill or 22% of the 2020 turnover.

Sanford might get worse before it gets better, depends on their marketing department and supply chains. At least they aren't selling quota, I hope. Haven't heard of any plan to nationalise the quota, although as a shareholder in Sanford I would be dead against this idea but as a NZer wouldn't it make more sense for the nation to own the quota and lease it to the private companies to fish. Then the country as a whole gets something for the resource extraction.

Aaron me old positive mate :-) Sadly, SAN has been selling quota, both in NZ & Tasmania. Silly as far as I'm concerned.

You as a shareholder in SAN and a taxpayer in NZ, are a winner. SAN's quota does not give them an ownership of the resource, it only gives them a permission to harvest a certain percentage of it in the form of an ACE https://www.mpi.govt.nz/fishing-aqua...h-entitlement/

To make it even bette for you as a tax payer, you receive a significant amount from SAN every year in the form of
:
https://www.mpi.govt.nz/fishing-aqua...rvices-levies/

[Aaron]

Thanks Iceman, although the levies only cover the cost to manage the quota and fisheries conservation so they are paying for their govt mandated monopoly on fishing. Still can't understand why you would sell quota, I should go to an AGM and ask what possible reason they have for selling it.

Still holding my shares I am still hoping the share price will continue to fall. I am near my original buy in price which I thought was expensive at the time with a 7% yield. Not a growth company but the 2020 result was to Sept 2020 so pretty much covered the entire lock down. If trading returns to normal over the next couple of years it might justify the current price but not prices it was at. Possibly should have sold out at the top if I had known it was a top. Taking my covid hits with this company but may buy more if the price continues down further.

The loss of a $20million dollar boat would wipe out the 2020 profit.

[Ferg]

Just pasting this here being the non-paywalled version of the Sanford mussel export issue in its Havelock facility:
https://www.stuff.co.nz/business/124...ade-suspension
(credit to mondograss in the ATM thread)

Do we know any more details about this issue? Was it something like a lack of masks by workers? I'm speculating but am curious.

[Balance]

Poor ole Sanford seems to be getting into a fair bit of strife currently?

One bad news after another.

[Ferg]

For sure Balance. That's why I'm curious to know more. Was it a case of overzealous auditors, something open to differing interpretations or poor management? Some might say 'bad luck' but one tends to make their own luck.

[Aaron]

Just pasting this here being the non-paywalled version of the Sanford mussel export issue in its Havelock facility:
https://www.stuff.co.nz/business/124...ade-suspension
(credit to mondograss in the ATM thread)

Do we know any more details about this issue? Was it something like a lack of masks by workers? I'm speculating but am curious.

Audit was in January so previously posted wild speculation by me was total bu**shirt. Have edited out previous post as I was embarrasing myself.