The ann. report looked great to me. Plenty of very encouraging...

The ann. report looked great to me. Plenty of very encouraging pts made around growth and sales strategy.

The overall loss was a given considering write down and costs.

The most important pts were as follows:
1. 1.8M profit in 2H16 on stablised cost base and + revenue. This gives us a glimpse into what is achievable assuming nothing goes wrong. By my forecasts we'd be looking at $ 5M profit for FY17. Mark my words on this.

2. Export mkts on low $A is going to make our product very attractive. $A is likely to get smashed is $US rates rise throughout FY17.

3. Guidance of 20%+ growth confirms word on the street that new MD has secured a signif tonnage in first 2mths of new fin yr.

4. Fish prices have skyrocketted due to higher protein demands containing DHAs. This is reflected in comments around higher farmgate prices throughout FY17.

5. Recent intl scandals surrounding quality of seafood; China and greater asia will look to increasingly secure quality from o/s sources - as will other co. (watch this space).

6. Any kick-back from the $34M legal action is likely to be paid out as a special div given limited cash requirements.

Combined with the cost strip (logistics and more efficient husbandry/feed practices) we are going to have a very profitable bus in 12mths time. Id be very surprised if it traces down tomorrow. Will look to accumulate if it does.