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Member
The fishing industry seems beseiged at the moment, a lack of skilled workers, a strong dollar, foreign competition for a diminishing resource. With such natural advantages NZ should have two or three world recognised brands listed on the NZX. Add to this the governments lack of traction in sorting out aquaculture regulations and the situattion is not good. What's needed is government guidance, Jim Anderton should stop setting up superboats and superbanks and set about taking away the barriers to creating a fertile environment for a sustainable fishing industry.
As for SAN. This an important month for SAN technically during a time of real weakness in it's shareprice. At 3 year lows and still with considerable selling pressure. There seems to be some historical resistance @ approx 3.50 then I guess the NTA. After that well the reserve bank might have driven another company to the wall. One thing is certain when we get below 4$ SAN will become a takeover target for sure.
http://www.kittydashwood.com - advice from a small black and white house cat, who favours a gap up on a red doji.
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Been up every day since it hit that 400 ..... you been buying Jamp??
”When investors are euphoric, they are incapable of recognising euphoria itself “
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I have been thinking about buying Sanford shares for over 3 years but everything (and I mean everything) I read about the fishing industry from all around the world shows fish stocks of all spieces on the decline . Today I read that English fisherman had a quota of 800,000 tons of sandeels (sound tasty don't they) last year but could only catch 300,000. Are NZ's fish stocks in a similar state or are they sustainably managed? In the last 3 years Sanfords price has fallen (along with world fish stocks). Are Sandford shares really worth buying?
\"The overweening conceit which the greater part of men have of their own abilities [and] their absurd presumption in their own good fortune.\" - <b>Adam Smith</b> - <i>The Wealth of Nations</i>
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Junior Member
It's quite difficult to tell, as this stock moves quite a bit on very little volume. However, the last week of action doesn't really inspire much confidence imo.
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Junior Member
from what i gather from mates who work on sealord boats they cant catch the quota allowed for hoki this year anyway,and theres definately a major decline in the stocks out there
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Here is most of the article from the BBC online.
UK seabirds' breeding attempts in 2004 have been disastrous, the Royal Society for the Protection of Birds says, with industrial fishing largely to blame.
In a report the RSPB says 2004 has been the most catastrophic breeding season on record for seabirds along UK coasts.
It says industrial fishing to supply fish meal and oil is barely sustainable and imperils the whole marine food web.
The RSPB says climate change is making matters worse, with some industrial fish species starving as the seas warm.
Total failure
Industrial fishing catches millions of tonnes of small fish which congregate in dense shoals - species like sandeels, sprats and anchovies - to turn into meal and oil, much of it to feed farmed fish.
The fish caught are a key part of the marine food chain, but the RSPB says we know little about the effects of industrial fishing. But it is worried: "The UK has suffered serious seabird disasters this year already. In Shetland and Orkney, entire colonies of birds failed to produce any young because of severe food shortages.
"On top of that, hundreds of seabirds have been washing ashore having perished at sea. Again, lack of food is thought to be one of the reasons."
The report, Assessment Of The Sustainability Of Industrial Fisheries Producing Fish Meal And Fish Oil, was compiled for the RSPB by Poseidon Aquatic Resource Management Ltd and the University of Newcastle-upon-Tyne.
It investigated the sustainability of two of the world's largest fisheries, the Peruvian anchovy industry and the North Sea sandeel fishery.
It concluded that industrial fisheries globally are failing to meet crucial criteria for sustainability, with the sandeel fishery deficient on around 60% of the criteria tested.
\"The overweening conceit which the greater part of men have of their own abilities [and] their absurd presumption in their own good fortune.\" - <b>Adam Smith</b> - <i>The Wealth of Nations</i>
The information you have is not the information you want.
The information you want is not the information you need.
The information you need is not the information you can obtain.
The informaton you can obtain costs more than you want to pay.
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Member
winner69, my funds have not yet been released from the Access Brokerage fiasco. Needless to say I feel like I have missed the boat on this one.
Regards JAMP
NZX: MCH MFT RBD SAN SKX SPN VTX WRI
Unlisted: BRK
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Junior Member
JAMP
Missed the boat. You should feel like the guy who missed the Titanic!
I cannot understand why anyone would contemplate investing in an industry that is doomed, unless the world accepts a near zero quota, for sufficient time period. Surely, until that happens you cannot get rich! Refer to above posts.
If you are a trader, you may have brief successes. Refer to your TA!
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Basically fish is sustainably managed in NZ, (apart from odd hickup ie Hoki) so in long term this would put SAN in a better position than its international rivals. Main concerns are:
- current profitability (lack thereof) as take out FOREX gains and result is poor
- lack of security of tenure over marine farm assets, while govt bumbles along with proposed rule changes.
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Sanford shares are up 50 cents in 2 weeks and 17 cents today. Today there were two annoucements.
1) The purchase of Suminovich.
2) Investing in China.
1) Sanford finalising purchase of fishing assets of Simunovich
Sanford Limited is in the closing stages of arrangements to purchase most of
the fishing assets of Auckland based fishing company Simunovich Fisheries
Limited.
These assets include fishing and scampi quota, vessels, equipment, workshop
facilities and other operational assets. Operational personnel associated
with these and other assets will be offered ongoing employment in similar
positions within Sanford Limited but some senior positions will be lost.
It is expected that this purchase will be completed and be effective from the
new fishing year commencing on 1 October 2004 and that it will prove highly
complementary to a broad range of Sanford's existing activities.
These include inshore longline and trawl fishing in the northern area for
species such as Snapper and Tarakihi which will further enhance the supply of
product to the newly opened Auckland Fish Market.
The hoki, orange roughy, and other deepwater quota species will be a used by
our existing deepwater ice and freezer trawlers and freezer longliners.
Simunovich's and Sanford's scampi operations will be integrated. From the 1
October 2004 the management of this resource changes from Olympic style
fishing (the disruptive race for fish with all the negative quality, market
volatility and over capitalization issues) into individual transferable quota
fishing where area quotas can be harvested in a much more efficient manner
maximising quality and vessel usage and supplying the market in a more
orderly fashion.
2) Sanford invests in China
Sanford Limited has concluded a 25% investment in a wholly foreign owned
seafood processing company in China.
The company Weihai Dong Won Foods Limited (WDWF), based in Weihai in the
north eastern part of the Shandong province is majority owned by Dong Won
Fisheries Co Limited of Korea but has other Korean shareholders as well. The
Sanford investment is part of an increase in the capital of the company from
US$5m to US$7.2m and coincides with an expansion of WDWF's already extensive
processing facilities.
This investment is part of Sanford's long term strategic goals of securing
the full benefits through a limited seafood supply chain into high value
worldwide seafood customers.
Weihai Dong Won Foods Limited was established in 1998 to meet increased
demand for new seafood products in Japan and elsewhere. The company sources
various seafood raw material products from New Zealand and elsewhere as well
as purchasing seafood locally in Shandong province. It processes that
seafood into more highly valued finished products which is then exported to
various countries around the world.
Sanford's investment will allow it to participate actively in the growth and
development of the business as well as enabling us to offer our customers
more specialized processed seafood products in one of the most competitive
economies in the world.
Sanford's decision to proceed with this investment was further encouraged by
New Zealand's recent recognition of China as a market economy and the
resulting steps towards a New Zealand/China comprehensive free trade
agreement.
Sanford has previously contracted the plant to process products caught in
other areas of the world and has always been impressed with its strong
emphasis on quality and efficiency. We are excited by the opportunities that
this equity investment offers us.
Sanford and Dong Won operate the San Won Limited Coldstorage business in the
port city of Timaru which has a sister city relationship with Weihai. Sanford
also charters three Dong Won fishing vessels in New Zealand.
Dong Won Fisheries Co Limited was established in 1970 and is listed on the
Korean Stock Exchange. For further information see www.dongwonfish.co.kr
Sanford is New Zealand's only publicly listed fishing compan
\"The overweening conceit which the greater part of men have of their own abilities [and] their absurd presumption in their own good fortune.\" - <b>Adam Smith</b> - <i>The Wealth of Nations</i>
The information you have is not the information you want.
The information you want is not the information you need.
The information you need is not the information you can obtain.
The informaton you can obtain costs more than you want to pay.
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