Ann: Operational update Sep 2012 , page-2

Haha! This is exactly the sort of thing you expect from CSS!

A whole lot of really vague and completely unquantified stuff somehow dressed up as something positive. If this doesn't ring alarm bells nothing will! It boggles the mind to think that some people will fall for it. Actually, the share price shows some people have. Incredible!

"The health of the kingfish is improving"

Yeah? And given your record of lies and misrepresenting facts, you expect us to believe it based on that one sentence? How was that improvement in health measured? How much did it improve? It would hardly be surprising if they said something that vague even if there was a dramatic fall in health - this is a company which has claimed unexpected 100% mortality good news. Did all but one of the kingfish die, and then that one not die for a day, and based on that last day's data the mortality rate has dropped to zero? I suppose you could fiddle with the numbers in any situation to say something positive.

"We remain on target to achieve early tuna spawning with our tuna broodstock already showing encouraging courting behaviour."

This is just plain amusing - nothing is expected to happen, so yep, since nothing happened, still on target!

"Cash reserves are as forecast and we have managed to sell significant surplus assets in line with our planned sell-down program."

No details, but hey, we projected something bleak and after selling all our stuff and chewing up the money we got, all is as expected. Hooray!

"We are well advanced on consolidating the existing kingfish business to Port Lincoln."

Oooh, the detail! You could have done nothing more than tell everyone that was the plan and say you were "well advanced" on the way to something.

"The Kingfish health is improving and mortalities are now on their way down."

Again, no detail at all. If half of them were dying every day the mortalities would be on the way down. What often happens in disease scenarios is that the weakest ones die first and the few remaining ones take longer to die. Again, no detail. How are they measuring health? This is a completely subjective and empty statement.

"We believe that we have narrowed the possible cause of the previously advised Kingfish health problems and further confirmation work incorporating mitigation and recovery solutions are now well underway."

That's just amusing. 'We believe that we have narrowed the *possible* cause... some vague thing is well underway...' goodness, something which could mean nothing from a company which lies and misrepresents truth... that's reassuring. You know that if CSS has bad news they'll present it as good news. If they actually had good news they'd be giving you solid details. Coming from CSS this is just scarey.

"Genetically selected kingfish have now begun spawning and are being used for the next juvenile production run. This should improve our growth rates - previously we only used wild caught kingfish as our juvenile sourcing broodstock."

Haha! I've worked in genetics labs, I've run selective breeding projects. I love the term 'genetically selected' in this context, which could only fool the most naive of people! By 'genetically selected' they probably mean that they used the ones which weren't killed by the disease. It's possible there could be some genetic resistance, but it's undemonstrated, and I'd be very, very concerned about a change in stategy at this point. If using captive spawned juveniles is better than wild, why wasn't it being done before? It's just remotely possible this could have a small benefit, in the same way that if I bought a ticket I might win the lottery, although I suppose if I won the lottery the result would be more than a small benefit. Oh well.

"Potential improvements have been identified for advancing the operations of the kingfish juvenile production."

Haha! What an insult to anyone reading this! Do they think there are investors that stupid? Oh, wait, they're right. Amazing. If someone can't do better than say "Um, yep! We have some, um, plans, to um, make things improved! Believe us, they're good!" it's... well... wow. They're really getting desperate.

"Our tuna broodstock remain in very good condition and are already showing encouraging courting behaviour."

That is, they haven't died.

"Their tank environment is being enhanced in preparation for earlier spawning in October 2012."

Haha! If there was anything worth saying they'd be saying it! 'Being enhanced' could mean 'we fished out a dead bird which fell in' or 'We fired that guy who was picking his nose and flicking it into the tank'. That they would keep running with this insulting vague empty nothing is too funny! Seriously, is everyone else laughing? This is awesome!

"Preparations are well progressed to enable the introduction of up to five thousand tuna fingerlings to sea pens early in the summer of 2012/13"

So... you have a net. Awesome.

As amusing as it is, I find this sort of situation, a company putting out such utter nonsense which really clearly sends out a massive and clear 'run away' message to anyone sane, even if they hadn't been watching the company before, and an even bigger "Run the **** away* message if they are familiar with the company to be quite valuable. When this announcement increases the share price by 25% (!!!) it highlights just how incredibly stupid some of the money on the ASX is, and how that money responds. I wouldn't touch this sort of company with a 20' pole (although I'd love to invest my worst enemy's money in it) but it gives an insight you don't get from good companies.

Clearly, only the complete idiots are still in at this point, and that's who the company is appealing to. No point appealing to the smart people - they ran away long ago. No need to worry about scaring the smart people away, that boat has sailed. Just put out the most positive thing you can manage without being blatant enough to give the regulators no choice but to act now. Don't even bother making it sound any good, you'll probably just alienate the stupid people by sounding too smart.

Loving the show. I dare any of the people saying I was downramping because I was buying to speak up now! As I started saying well over a year ago, I wish it was as easy to find a company on the way up as it is to find as clear a case of something on the way down as CSS.