I highly rate David Head, I think he is someone you want to steer the ship. He is an excellent communicator and displays great knowledge about the product and the industry.
But as much as I like CSS, and as much as I want to see it’s success, I think it’s stuck in a corner right now.
Only a few months back I recall a presentation about avoiding the retail market like the plague. The last CR etc an a few other calls. Even the concept of talking up liquid nitrogen freezing, it’s been around in other industries a long time, and how much does this add to the production cost? it’s probably an additional expense that would need to be shelved to become cost competitive in the retail market. I think clean seas has enough advantages with just sticking with clean Australian waters. Adding the nitro freezing starts to go on the verge of borderline gimmicky, particularly if no one else is doing it.
The other thing too, if all the other frozen restaurant suppliers target retail well than it creates some more issues too. So to call out that shifting strategy to retail may deliver just as good results is bold considering how the market reacts to missed targets.
Id probably be more inclined to take a position if the strategy was more about moving stock/softening the blow by entering retail, slow up production by increasing biomass size and then resume and drive growth with the reopening of economies.
But than again I’m not an industry expect so I could be way off the mark. This whole thing could easily be a blessing in disguise so speak. Obviously tapping into a very big market could back door rocket this stock. I’ll monitor closely. 100% this is a good business and it was absolutely primed from 2021/22 based off 2019 strategy but this bloody COVID hasn’t made anything easy to predict.
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