Home' InDaily : March 5th 2010 Contents Investors in South Australian
aquaculture research and
development company Clean
Seas Tuna Ltd have been urged
to be more cautious about the
company s prospects.
The call follows unexpected
dumping of Clean Seas shares after
the release late last week of its half
year result for 2009-10.
"At the end of the day it s a
research company and it s still very
early days," Clean Sea s managing
director Clifford Ashby said this
"Perhaps some people had
expectations that were too high and
The company lodged its H1
result with the stock exchange
late last Friday and then watched
shares plummet almost 60 per cent
from 21c to 9c as a million shares
By midweek they had recovered
to around 13c.
The company had reported a
worse than expected loss of $14
million, following on from its $12.6
million loss in 2009.
Corporate expenses had risen 80
per cent and the report included
an auditor s statement noting "the
existence of a material uncertainty
which may cast significant doubt
about the company and consoli-
dated entity s ability to continue as
a going concern.
"The company and consolidated
entity will require additional funds
for the continued development of
their existing projects and working
capital," the auditor s wrote.
Shares analyst Stephen
Henderson, director of Insight
Financial said he was surprised so
many investors had bailed out.
"It's a fully speculative stock --
there s no dividend and no profit,"
"But I was a bit surprised people
Clean Seas listed in 2005 as the
corporate vehicle for Port Lincoln
tuna magnate and entrepreneur
Hagen Stehr AO trading as high
as $1.75 in 2007 and 80c as recently
as August last year. It includes
a kingfish division and the SBT
aquaculture development project.
The hype went up a notch in June
2009 when the company announced
Mr Stehr was "travelling to Oslo,
Norway, at the invitation of global
aquaculture experts following
Clean Seas breakthrough earlier
this year in breeding Southern
Bluefin Tuna at its onshore breed-
ing facility at Arno Bay in Spencer
Gulf, South Australia.
"International fisheries experts
are keen to learn from the Clean
Seas experience in a bid to boost
stocks of Northern Bluefin Tuna,
which cannot meet the escalating
demand for seafood in the northern
hemisphere," the announcement
"Clean Seas development of
sustainable breeding processes to
close the SBT life cycle is the way of
"In March, Clean Seas success-
fully spawned SBT for the first time,
paving the way for commercial
aquaculture production from the
company s next scheduled spawn-
ing in October/November this year
Then, in November, Time
Magazine boosted the company s
reputation when it named its work
on breeding SBT in captivity as
the world s second best invention
of the year (behind a NASA Ares
1 rocket) almost at the top of its 50
Best Inventions of 2009.
In January this year the com-
pany announced to the exchange
that "Southern Bluefin Tuna
bloodstock commenced spawning
late last week and larval rearing
"It is anticipated that resultant
fingerlings will be transferred to
sea cages at Arno Bay for com-
mercialisation grow out trials in
But the spawning season showed
"intermittent results" and the
company found itself up against
the reality of nature.
"It wasn t as prolific as last year,"
Mr Ashby said.
"The number of eggs wasn t as
great as the previous spawn and
sometimes that s just nature.
"Will they spawn again this
season? Who knows -- Hagen is
confident they will spawn again in
March," Mr Ashby said.
Urging investor caution he
repeated the contrast between
research and commercial reality.
"Do be cautious. It is research
and development and you do hit
"Most people in the company see
the vision and I m confident we ll
overcome the stumbling blocks.
"The company is doing every-
thing it can."
Stephen Henderson said the
share plunge might have reflected
overall investor nervousness
combined with profit taking.
"The market overall is very
jumpy and companies which come
in under expectations are getting
thumped," he said.
"This company is like any other
research and development stock.
"If it works it works, if the
technology doesn t stack up and
they run out of money, then you
"That s speculative investing."
Southern Bluefin Tuna harvested offshore at Port Lincoln -- onshore farming is proving more difficult.
Clean Seas: sink or swim
Investment of $150 million dollars at the Port is going begging because The Rann Government does not want to allocate the land to the
Adelaide Motorplex Consortium, which would bring back drag racing in Adelaide and generate many jobs and associated tourism for our State.
I am calling for a complete overhaul of the current Land Tax burden which is outrageous. I am constantly reminded how the excessive taxes in
SA are such a huge disincentive for future investment in this State.
This issue is one that is continually swept under the carpet and it astounds me that the Rann Government, who stands for Social Justice would
even consider using that slogan in the way they are treating people with Mental Health Issues and to even think of selling off the Glenside facility,
instead it must be kept and expanded for the benefit of the people with mental health problems.
Independent Commission Against Corruption (ICAC)
I have been in favour of an Independent Commission against Corruption for many years and it amazes me that both the Attorney General and
the Rann Government are so opposed in having an independent umpire investigate matters of State.
This is also another issue where both the Attorney General and the Rann Government have transgressed throughout their term in office, where
they have interfered with the Judiciary, therefore breaching the three separations of power.
Vote 1 Independent Joe Ienco above
the line in the Upper House Ballot Paper.
Authorised by Joe Ienco Westcorp Real Estate, 176 Grange Road Flinders Park.
Independent Joe Ienco
Motorsports, Land Tax,
Mental Heath and ICAC.
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