dead fish bounce

I had high hopes for this company and have been burnt badly as a result.As tempting as it is to enter for a bounce trade, I feel any appreciation in price is an opportunity for longer term investors to exit and will be short lived.A quote from another forum sums up the company's prospects:

"As far as I am aware all of the fingerlings suffered a mortality event."

"I am afraid that, in all likelihood, CSS will cease trading. I can't envisage any scenario that may prevent this outcome. Even spawning success in March won't prevent their demise in my view.
The reasons I think they will fail are the following ( not necessarily in order ):

1. SBT - They are able to propagate SBT fingerlings but only very small quantities and the mortality rate is extremely high. They are many years away from commercial production, I would guess 5-10years at best.

2. YTK - After 5 years they have been unable to develop a profitable YTK business. The growth rates and FCR's are appalling and they will never achieve profitability at this rate.

3. Bank Support - No bank, in my view , will loan them any money. It is far too high risk for even the most adventurous banks.

4. Institutional and Foundation Support - Without banks the next line defence is the Insto's. With this latest outcome I believe they will sell out of CSS and will not support any further cap raisings. Even foundation investors like Simplot will desert CSS.

5. Retail Investors - Badly burnt by lack of progress and a plummeting share price even the most stoic investors will be reluctant to provide more funds.


I am sorry I can't paint a more optimistic view for remaining holders but I can only tell it as I see it.
I am no longer invested in CSS so my views are not that of a holder but I can say that I will definately not be buying any CSS shares no matter what the price.

History tells us that very few companies in this position survive. Even the last hope of a White Knight is unlikely because I can't see how they would benefit from purchasing CSS.


Please DYOR and carefully consider all the facts."