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SeaDragon
Could not find thread for SeaDragon......hence this new one......
A $2.5 million cash injection has provided fish oil producer SeaDragon Marine Oils the scale to treble its capacity and expand into global markets, an investment research firm says.
An Edison Investment Research report on the Nelson-based company suggested a new fish oils plant, scheduled to be completed next year, would allow SeaDragon to diversify into omega-3 oils production.
The report said "the corner has been turned" for SeaDragon, with a $2.5m boost from an Australian bioscience investor providing the catalyst for expansion.
SeaDragon is the largest producer of refined fish oils in Australasia, but the report noted the company's historical financial performance was not promising.
Omega-3 oils were in strong demand worldwide, whereas the company's squalene production was predominantly sold in Asia, the report said.
The company produces hundreds of tonnes of refined hoki, and shark oil dietary supplements.
Last July, SeaDragon announced a three-way deal with Bioscience Managers and Auckland-listed investment company Claridge Capital.
Bioscience Managers agreed to invest $2.5m for 312.5 million shares in Claridge on the condition Claridge completed the purchase of SeaDragon.
Edison Investment Research analyst Jane Anscombe said the investment had seen the company recover from a long period of cash constraints and unprofitable numbers.
The company currently boasted net cash of $200,000 and a $3.75m shareholding in Snakk Media.
"SeaDragon is at a turning point, with a restored balance sheet improving profitability and strong demand from a large and growing market," Anscombe said.
"The real investment story is the potential for the group in the much larger omega-3 market."
Edison expected SeaDragon's revenue for the five and a half months to March 2013 would be $9.3m.
It said, however, that delays to the installation of the new plant, caused by supplier failure, had been frustrating.
The new plant was expected to be operational next year and at full production in 2015.
Edison's report said SeaDragon's outlook was tempered by caution over whether the company could consistently trade profitably.
"The strength of market demand is such that, unusually, SeaDragon's competition is for raw materials rather than for customers," it said.
"Its order books are full and we see upside to profit estimates."
Contact Hamish McNicol
Business reporter
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May the best Dragon Thread Win
As I said on the other one
Best Wishes
The Dragon Slayers Cat
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The reason I started this thread was because search did not throw up link.......now I see why.
Registered name is Seadragon NOT Sea Dragon!
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Is this the 'Real Oil' this time?.....it's been a long road > Regal Salmon>Queen Charlotte Holdings>Aquaria 21>AQL Holdings>Certified Organics>CER Group>Claridge Capital and now SeaDragon!
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Well things look like being on the up,at least for a while.They will probably beat their revenue forecast by nearly 42%.
Lets see what happens.Yep and a snakk holding to boot.
Last edited by kizame; 06-05-2013 at 12:17 PM.
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Next Big Thing on the NZX
And up to 3c on turnover of 300,000 shares ($9,000)
This, significantly, could see me in positive territory in the NZX competition .
Best Wishes
Paper Tiger
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Michael Jacomb
Originally Posted by ari
Is this the 'Real Oil' this time?.....it's been a long road > Regal Salmon>Queen Charlotte Holdings>Aquaria 21>AQL Holdings>Certified Organics>CER Group>Claridge Capital and now SeaDragon!
This can ONLY mean danger danger danger KW, SJ, JS, RG, BW etc give your money to charity and at least have a happy ending.
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Member
Looks
Looks like SP support around 3cents. Do you think it's share holding in SNK will drag it higher?
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Did you know
Originally Posted by Jasemc
Looks like SP support around 3cents. Do you think it's share holding in SNK will drag it higher?
Did you know that at $0.030 SeaDragon has a market capitalization of $36,951,997 ?
And did you know that at $0.136 Snakk has a market capitalization of $34,656,748 ?
and did you also know that SeaDragon have 25,000,000 Snakk shares currently worth $3,400,000, which is less than 10% of the market capitalization of SeaDragon ?
furthermore did you know that a change of $0.049 (4.9c) in the market price of Snakk changes the value of SeaDragons holding in Snakk by $1,225,000 which is equivalent to a $0.001 (0.1c) change in the market price of SeaDragon ?
So do you now know that a 4.9c change in Snakk affects SeaDragon by 0.1c ?
Finally did you know that Llamas are bigger than Frogs ?
Best Wishes
Paper Tiger
Last edited by Snow Leopard; 28-05-2013 at 10:38 PM.
Reason: picked up a few dropped'h's
om mani peme hum
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Member
Thanks for the info about LLamas. So sea dragon will sell snakk to fund their new plant. And ants are smaller than elephants !
Last edited by Jasemc; 28-05-2013 at 10:44 PM.
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