MARKET HEADLINE: SHORT SELLING BY OCTOBER

Alliance Select Foods Int'l Inc.
#1
Business Profile:

Alliance Select Foods International Inc. (ASFI or the “Company”), formerly known as Alliance Tuna International Inc., was incorporated and registered with the SEC on September 1, 2003 and started commercial operations in 2004 to engage in tuna processing, canning, and export of canned tuna products in General Santos City in Mindanao.

In August 2004, the Company registered with the BOI under the Omnibus Investments Code of 1987, otherwise known as Executive Order No. 226, as a New Export Producer of Canned Tuna and its By-Product (Fishmeal) on a Non-Pioneer Status. All sales of the Company generated from its registered activity, the production of canned tuna and its by-products are entitled to an income tax holiday for four (4) years from the date of registration. The registration and corresponding benefits have been extended for another three (3) years, after the Company’s compliance with certain conditions prescribed by the BOI.

The Company’s key business activity is the processing, canning, and export of canned tuna. The Company exports its canned tuna products to Europe, North America, Asia, Africa and South America. The Company is primarily a “private label manufacturer” of canned tuna and processes and cans tuna in the institutional and retail pack can sizes using its customers’ brands.

To enhance margins, the Company processes the by-products and scraps from its tuna processing operations into fishmeal, which it sells to the domestic and export markets.

The Company set up a marketing representative office in Bangkok, Thailand, in May, 2004 to tap the network of buyers and brokers who use Thailand as a base to buy canned tuna.

ASFI also acquired a 40% stake in FDCP, Inc., (FDCP) a can making Company, in September 2005, to ensure the availability of quality cans at competitive prices and sustainable supply. The investment in FDCP has enabled ATII to improve its product cost structure.

In May, 2008 the company established a subsidiary, PT International Alliance Foods Indonesia (PT IAFI) which acquired the assets of an Indonesian tuna cannery located in Bitung, in the island of North Sulawesi. The Company owns 90% of PT IAFI. A complete renovation of the factory and upgrade of capacity to 60 metric tons per day was undertaken. This investment in Indonesia allows PT IAFI access to rich Indonesian marine resources and expanded the combined operating capacity to 200 metric tons per day. PTIAFI started operations in July 2009.

As part of the Company’s product diversification strategy, the Company invested in a New Zealand based processor of smoked salmon in January 2009. The initial investment of a 39.00% stake in Prime Foods New Zealand, Ltd. (“PFNZ”) was later increased to 50% plus 1 share of PFNZ. The Company and PFNZ established a joint-venture company called Big Glory Bay Salmon & Seafood, Inc. (“BGB”) that will import salmon from New Zealand, Chile, and Norway and process it in General Santos City, Mindanao, Philippines. The construction of the processing plant is expected to be completed within the first half of 2011. The Company subscribed to 19,056.702 shares or 81.09% of BGB’s outstanding capital, while PFNZ subscribed to 4,443,298 shares or 18.91%. Out of the Company’s subscription in the aggregate amount of P19,056,702.00,
P5,600,000.00 has been paid up, while PFNZ’s subscription in the aggregate amount of P4,443,298.00 has been fully paid. In accordance with the Shareholders’ Agreement, the Company will reduce its shareholdings to 50.00% plus one (1) share with the balance held by PFNZ. The smoked salmon products from BGB will be exported globally.

BGB was registered with the BOI on February 26, 2010 as a New Export Producer of Smoked (hot/cold) Salmon and its by-products on a non-pioneer status under the Omnibus Investments Code of 1987. This entitles BGB to avail of income tax holidays for four (4) years.

In June 18, 2010, the Company established AMHI to acquire the land and canned tuna processing facilities that the Company has been leasing from MCC. The Company owns a 40.00% stake in the affiliate.

To reflect the changing nature of Alliance’s product line, and to continue on its product diversification path, the firm decided to change its name from Alliance Tuna International, Inc. to Alliance Select Foods International, Inc. While canned tuna will continue to be an important source of growth for the company, the firm decided to diversify its product line and take advantage of its manufacturing expertise and global marketing channels to introduce new products. The new name reflects that change in company’s direction. The change in corporate name was approved of the SEC on July 22, 2010.

Source: Annual Report 2010


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#2
RESULTS OF OPERATIONS

Three months Ended March 31, 2011 versus March 31, 2010

The company faced a challenging environment in the first quarter of the year but was able to adapt its policies to manage these dynamics and turn in yet another profitable quarter. Alliance’s operations were buffeted by erratic supply of raw material during the quarter. Some customers postponed their purchases due to the resulting high prices which reached levels not seen since the boom in commodity prices a few years ago. However, the firm was able to reconfigure its marketing strategy and minimize the effects of changing marketing conditions. With a global client base, Alliance was able to market its products to less price conscious customers and changed the product mix to optimize profits. At the same time, Alliance’s procurement policies were amended to mitigate the effects on company operations and ensure timely deliveries to its clients. By the end of the quarter the fish deliveries had normalized and Alliance expects the trend to continue for the foreseeable future.

Alliance’s salmon operations were another bright spot in the company’s performance. Pro-active marketing strategies put in place earlier bore fruit and the subsidiary’s profit margins increased significantly over the same period last year. With the opening of the company’s state of the art smoked salmon facilities in General Santos in the next few weeks, Alliance expects salmon to be the driver of the company’s growth and profitability while at the same time having canned tuna at the core of its operations.

The Company’s Consolidated Revenue experienced a 12% decline to $ 10.9 million against $12.4 million last year on account of lower sales volume brought about by below average delivery of raw material . Gross profit was recorded at $ 1.4 million versus $ 1.7 million a year ago. Gross profit margin dropped by 1% to 13% from 14% in 2010. The Company Selling and Administrative expenses this year amounting to $ 971 thousand was slightly lower than last year’s $985 thousand. Finance Cost incurred during the period amounted to $ 199 thousand from $ 132 thousand in the same period last year as the Company and its subsidiaries continued to avail of revolving credit facilities to finance its working capital.

Consequently, the Company’s consolidated net income for the three months ending March 31, 2011 fell by 56% to $227 from its earnings of $ 521 million in the comparable period last year.

Source: Q12011 Financial Report

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#3
Change in Offer Period and Listing Date

Please be informed that in a letter dated June 13, 2011, the Company advised the Exchange of the revision in the Company’s Offer Period and Target Listing Date as follows:

Ex-Date: June 24, 2011
Record Date: June 29, 2011

Start of Offer Period: July 4, 2011

End of Offer Period: July 13, 2011
Tentative Listing Date: July 25, 2011

Also, please be advised that the Company’s Receiving Agent and Stock Transfer Agent is Securities Transfer Services, Inc. The Offer Memorandum inadvertently stated that the Company’s Receiving Agent and Stock Transfer Agent is Stock Transfer Services, Inc.

http://www.pse.com.ph/html/NewsRoom/memo...1-0019.pdf
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#4
Board approval of increase in authorized capital stock and stock dividend declaration

http://www.pse.com.ph/html/disclosure/pd...5_FOOD.pdf

Based on the disclosure above, it states the following:

1. Increase in corporation's authorized capital stock with par value = 1.0 for the purpose of possible future capital raising activities of the company.

2. Stock dividend to be paid out from the Corporation's retained earnings as of December 31, 2010 and be distributed to stockholders of record as of the 15th trading day from approval of said stock dividend by SEC.

The increase in authorized capital stock and stock dividend declaration is subject for approval of stockholders on its ASM on August 1, 2011.

Note: No details were given as to the value of stock dividend.
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#5
Alliance Select sees 2011 income to reach $3.2M

ALLIANCE Select Foods International Inc., a listed processed fish exporter, said net income is forecast to grow by almost two times to $3.2 million, thanks to an uptick in sales.

During an investors’ briefing on Tuesday, Alliance Select president Jonathan Dee said revenues are expected to grow to $78 million, from $48.35 million in 2010, after consolidating sales from US-based smoked salmon processor Spence & Co. in the middle of the third quarter.

“One of our long-term plans is to consolidate the market in the US by acquiring regional brands [there],” Dee said in his presentation. “We found the US market fragmented.”

Dee said Spence & Co. will be a bigger contributor in 2012, accounting for 20 percent of net income.

Also seen to boost earnings this year is the contribution from a $1.5-million seafood plant in General Santos City. To be inaugurated next month, the plant has a daily processing capacity of three tons.

Alliance Select shares declined 1.63 percent to P1.21 each on Tuesday’s trading, giving the company a market value of P1.05 billion.

Alliance Select is set to hold its P272.27-million stock rights offering from July 4 to July 13, proceeds of which will be used to partly pay for the acquisition of Spence & Co. It is offering one rights share for every 2.2 common shares held by stockholders as of record, a memorandum posted on the PSE’s website showed.

Abacus Capital and Investment Corp. was tapped as issue manager and underwriter for the rights offering.

Alliance Select announced earlier that the acquisition of Spence & Co. will cost the company around $8.5 million.

Formerly Alliance Tuna International Inc., Alliance Select started commercial operations in 2004 when it engaged in tuna processing, canning and export.

http://www.businessmirror.com.ph/home/co...-reach-32m
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#6
Com, would you like to serve some food for Uncle after all the works he has done to make his fave stocks rise? He may be so hungry na eh.

Besides, after being so full, he might want to set up a BPO. Tongue
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#7
Tuna producer bags $4.5 M in loans

TUNA PROCESSOR and exporter Alliance Select Foods International, Inc. has signed deals to borrow almost $5 million from two local banks.
Fresh loans will allow the company purchase a United States-based smoked salmon processing firm, the company told the local bourse on Monday.

"Alliance Select today signed a loan agreement with Rizal Commercial Banking Corp. for $2.5 million and Philippines Veterans Bank for $2 million to partially finance Alliance Select's acquisition of Spence & Co.," the listed firm said in a disclosure.

"The tenure of both loans is five years from the date of signing," it added.

The principals of the two loans are guaranteed by state-owned Philippine Export-Import Credit Agency (PhilEXIM), also known as Trade & Investment Development Corp. of the Philippines.

In a separate disclosure, it was reported that US-based subsidiary ASFI Choice Foods, Inc. assigned all its rights and obligations in the $8.5-million purchase of Spence & Co. to parent firm Alliance Select.

"The assignment of the stock purchase agreement by Choice Foods to Alliance Select was rendered necessary due to the requirement of PhilEXIM...that Alliance Select should be the one to directly use the guaranteed loan proceeds," the firm said.

As of end-2010, the company had $13 million worth of short-term debts and $1.08 million worth of long-term debts.

Source: bworldonline.com

http://www.bworldonline.com/content.php?...s&id=35673
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#8
buy food 1.08 or below
and wait for the putok moment.
kanya kanyang sell
sa mga may trip lang
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#9
WinkWinkWinkWinkWinkWinkWinkWink
Trading stocks using technical analysis can be profitable if you understand the secrets that professional traders know.
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#10
Acquisition settled

TUNA PROCESSOR Alliance Select Food International, Inc. said it has used proceeds from a July stock rights offering to settle the remaining payment for the acquisition of United States-based food firm Spence & Co. Alliance Select said in a disclosure it paid $96,831 on Sept. 19, completing the acquisition. “After the secondary rights offering expenses plus payments to settle the shot term obligations to Amalgamated Investment Bancorporation and acquisition of shares in Spence, Alliance used the balance of funds in the amount P1,800,322 for its working capital,” the company said.

http://www.bworldonline.com/content.php?...s&id=38930
the key to trading success is to focus on how much money is at risk, not how much money you can make.

trading is simple, but it's not easy. if you want to stay in the business, leave hope at the door, focus on specific setups, and stick to your stops.
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