Oceanus

Hi neontet, Thank you for sharing on Design Studio... Not sure whether it is a good time for Great SGX sales.... but i always like to go against the crowd and I have pick up some stocks today (Oceanus, China Gaoxian, PLife) from the market. Today I have averaged down my cost for Oceanus. It may not be very cheap but i think the price is reasonable enough for me. And i hope the coming result will bring us good news. From Oceanus 9mth result 1) We expect price of abalone to improve gradually over the next few months due to coming festive Chinese New Year. Note: The increase in our stock of caged abalone by 73.7 million units from 103.2 million units to 176.9 millions. There should be a substantial gain in both fair value in its stock as well as increase in revenue. 2) Ah Yat Tian Xia restaurant outlets had recorded sales of RMB 21.6 million for 9 months to 30 September 2009 since it opened its first outlet in Shanghai in January 2009. The significant increases in sales in 3Q2009 as compared to 2Q2009 was contributed partially by five restaurants opened during the 3 months period to 30th September 2009. The Group targets to expand the chain to up to 20 outlets by end-2009. On top of the 9 outlets that are already operational as at 30 September. Note: 4th Quarter result will take into consideration of FULL quarterly contribution from 9 restaurants that are operational. It\'s EIGHT restaurant in Shanghai may also expect to benefit from Shanghai Expo 2010. 3) Processed Abalone are sold to its own restaurant which cut away middle men and increases it margin. There has been substantial increase of 47% sales of canned marine products to third parties RMB 6.8 million compared to that of 2Q09 demonstrated the acceptance of Oceanus canned abalones in the restaurant trade. These customers from China, Hong Kong, Singapore, Japan and Thailand are familiar with group in the trial use of its canned abalones despite its processing plant still under construction. Note: The Group has commenced its abalone canning in March 2009 at a temporary food processing facility in Zhangzhou City, Fujian. The Group\'s new abalone processing facility in Zhangzhou is under construction as at 30 September. This is definitely a progressive company which keep on growing. Definitely interesting to see that they are developing additional sales revenue which improves its margin.

Oceanus is Abalone KING. GOOD CHOICE for CHINESE NEW YEAR:)

I like abalone but unfortunately, I don\'t like OCEANUS. Study the financials especially the operating cash flow and you will see why. The Company is burning cash faster than my girlfriend can buy her Prada and Gucci. That\'s why the Company always go market to raise funds. I could be wrong but I prefer to stick to eating at their Ah Yat Abalone restuarant. :laugh: :laugh:

I don\'t like abalone and I don\'t like Oceanus. Very speculative, in my opinion.

Hi Morpheus, Thanks for pointing out the operating cashflow. I noticed that the cashflow from operating activities before working capital changes is still positive for the 9mth ended Sep 09. Cashflow turn negative due to the cashflow from investing activities - purchase of property, plant and equipment which amount to RMB 212.9 million for 9 mths 2009. Quarterly result page 14. Item 6: Property, plant and equipment increased by RMB 179.4 million. The increase was mainly due to acquisition of farms, addition of new tanks, construction of abalone processing plant and setting up of new restaurant outlets. I think now the challenge is on the ability of the management to successfully implement these project and investment to turn them into a profitable and positive cashflow for shareholders. Regards erelation

PURE Cash Flow from Operations is POSITIVE:laugh: Investment Cash Flow is a separate flow. :laugh: In the CashFlow Statement, they are specifically separated for management review and control purpose. :laugh: erelation wrote:

Hi Morpheus, Thanks for pointing out the operating cashflow. I noticed that the cashflow from operating activities before working capital changes is still positive for the 9mth ended Sep 09. Cashflow turn negative due to the cashflow from investing activities - purchase of property, plant and equipment which amount to RMB 212.9 million for 9 mths 2009. Quarterly result page 14. Item 6: Property, plant and equipment increased by RMB 179.4 million. The increase was mainly due to acquisition of farms, addition of new tanks, construction of abalone processing plant and setting up of new restaurant outlets. I think now the challenge is on the ability of the management to successfully implement these project and investment to turn them into a profitable and positive cashflow for shareholders. Regards erelation