Having a second, expert opinion on your favourite (or least favourite) ASX shares can help us find the holes in our investment theses, as well as provide some meaningful reassurance to our own bullish projections on a particular ASX company.

So with that in mind, today let's discuss six ASX 300 shares that have just been upgraded by various ASX brokers.

The six shares, according to reporting in The Australian, are discussed below:

Six ASX 300 shares that just got a broker upgrade

APM Human Services International Ltd (ASX: APM)

ASX broker Bell Potter has reportedly raised this ASX 300 employment services share to a buy rating, with a 12-month share price target of $2.21.

That's a good 15.7% above the current price (at the time of writing) of $1.91. The APM Human Services share price has lost 22.2% in 2023 to date:

Clean Seas Seafood Ltd (ASX: CSS)

Bell Potter has also decided to give ASX 300 seafood producer Clean Seas a buy rating, albeit without a share price target.

Today, Clean Seas shares are going for 48 cents each, but have lost 20% over the year so far:

EML Payments Ltd (ASX: EML)

ASX 300 payments share EML is next up. Broker RMC (Royal Bank of Canada) has given the EML share price an outperform rating, along with a 12-month share price target of $1.40.

If realised, that would see the EML share price gain around 30% from its current share price of $1.09. This company is already up a massive 72.6% in 2023 thus far:

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

Our next ASX 300 share to discuss is healthcare stock Fisher & Paykel. Brokers at CLSA have raised their rating on this company to accumulate, alongside a 12-month share price target of $24.47.

If CLSA is on the money here, that would see Fisher & Paykel shares rise 18.73% from the current stock price of $20.61. This company has lost 3.33% over the year so far:

Mineral Resources Limited (ASX: MIN)

The formerly high-flying ASX 300 mining stock and lithium producer Mineral Resources is our penultimate stock to discuss.

Broker firm Citi has raised its rating on Mineral Resources shares to a buy, with a share price target of $79. That represents a potential upside of 13.75% from the current price of $69.45. Mineral Resources shares are still down by 6.7% year to date:

Star Entertainment Group Ltd (ASX: SGR)

Finally today, let's talk about ASX 300 casino and gaming share Star Entertainment. We have a two-for-one special here.

Brokers at Macquarie have raised their view on Star to outperform, with a 12-month share price target of $1.25 for the embattled casino operator. But fellow broker Jefferies is going further with a buy rating and a share price target of $1.33.

This would see upsides of 25% and 33% respectively at the current Star share price of $1. Star Entertainment shares remain down a nasty 40.4% this year:

The post 6 ASX 300 shares just upgraded by top brokers appeared first on The Motley Fool Australia.

At the time of writing, the yellowtail kingfish producer's shares are up 8.5% to 83 cents.

Why is the Clean Seas Seafood share price surging higher?

This morning Clean Seas Seafood revealed that its sales volumes have rebounded significantly thanks to the reopening of restaurants and its diversification into new channels.

According to the release, Australian sales volumes increased from 196 tonnes in the fourth quarter of FY 2020 to 294 tonnes in the first quarter of FY 2021 and then 456 tonnes in the second quarter.

This second quarter result is a 3% increase on the prior corresponding period. This is a big positive given that this prior period was before COVID-19 impacts first appeared.

Over in Europe the company's sales benefited from an easing of restrictions in the first quarter of FY 2021. Volumes normalised from 94 tonnes in the fourth quarter to 267 tonnes in the first quarter. Though, the reinstatement of COVID restrictions did lead to volumes easing to 174 tonnes in the second quarter.

In North America Clean Seas achieved sales of 157 tonnes to Hofseth North America in support of retail launches in this market. Management revealed that its Kingfish is now being sold in 80 retail stores across North America through this partnership. Further retail and home meal kit channel launches are pending for the upcoming months.

Finally, management advised that despite the ongoing disruption in the food service channel, Clean Seas achieved sales of 1,413 tonnes in the first half of FY 2021. This compares to 1,016 tonnes in the second half of FY 2020 and 1,406 tonnes in prior corresponding period. It feels this is a good outcome in a highly disrupted global market.

Production issues.

Taking some of the shine off its sales improvement was news of production issues at Boston Bay.

According to the release, the company has experienced an increase in fish mortalities within its marine leases at Boston Bay. Fortunately, Clean Seas' other farming locations on the Spencer Gulf are unaffected.

Management has identified a range of contributing factors and taken multiple steps to mitigate the risk of further mortalities. This includes removing fish from the affected location. Pleasingly, these actions have seen a decline in mortalities and an improvement in fish health.

Nevertheless, there will be a financial impact from this production issue. Management advised that the additional mortalities incurred are expected to represent ~4.5% of Clean Seas' live fish biomass. This is expected to result in a reduction in its fair value of biological assets of ~$3 million.

Pleasingly, some of this will be offset by a $1 million saving from reduced feed and operating expenses.

Clean Seas' CEO, Rob Gratton, commented: "Clean Seas has exited the challenging 2020 year in a good position, with sales volumes in Q2 FY21 slightly above pre-COVID levels, and a strong balance sheet with the recent renewal of the company's banking facilities. Sales in existing channels have rebounded strongly as restrictions ease, and importantly, the strategic relationship with Hofseth is gaining traction with sales of Kingfish into North American markets diversifying, strengthening and growing the Clean Seas business."

The post Why the Clean Seas (ASX:CSS) share price is jumping 8% higher today appeared first on The Motley Fool Australia.

Tasmania-based Tassal is principally a cold water salmon farmer where it operates in a heavily regulated environment where additional salmon farming licenses are like gold dust due to environmental concerns over salmon farming.

This is one reason why it's planning to invest $30 million of capex to develop warm water Queensland prawn farms, with a target to create $25 million in EBITDA by FY 2021. Tassal's prawn farms will be located around Proserpine with 50 new jobs to be created as consumer demand and prices for prawns continues to rise steadily over the long term.

Over FY 2019 Tassal reported an adjusted profit of $56.6 million sales with rising production costs offset by rising salmon prices. Others in the aquaculture business include Clean Seas Seafood Ltd (ASX: CSS) and Huon Aquaculture Group Ltd (ASX: HUO).

The post Tassal has Queensland growth plans to boost share price appeared first on The Motley Fool Australia.

The Huon share price tumbled 1.9% to $4.55 yesterday as the broker downgraded its recommendation on the stock to "neutral" from "outperform" as the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) index shed 0.8% of its value.

There are signs that investors have dumped Huon and rotated into its rival as Tassal Group Limited (ASX: TGR) share price jumped 0.9% to $4.30 on Wednesday.

This isn't the time to have an earnings cloud hanging over a stock as investors are feeling particularly anxious towards risk assets because economic growth seems to be faltering.

Not Getting a Bite

If there is a silver lining to the downgrade, it's driven by rising cost and not by falling demand for Huon's product.

"Costs are likely to only improve in 2H19 when the 2018 year class starts to be sold (which carry meaningfully lower costs than the 17YC), contributing to a 2Hskewed result," said Credit Suisse.

"That is not unexpected, but leaves little by way of short-term positive stock catalysts and potentially modest downside risk to FY19 consensus estimates."

At least HUO's share price is trading on undemanding valuations and patient investors could still catch a reward in FY20 on the back of an anticipated bumper harvest.

Credit Suisse has a $4.90 price target on the stock.

Bigger Fish

Tassal may make a tastier catch for the moment, according to Credit Suisse. The TGR share price is better placed to benefit from good fish growing conditions in Tasmania and strong fish prices.

"Despite risks inherent to the sector, TGR's long-run earnings have been relatively stable and consistent," said the broker.

"If it achieves FY19 expectations, it will be the seventh straight year of earnings growth at an average of ~12%. At a ~13.1x FY19F PER (in line with long-run average), valuation looks undemanding."

Credit Suisse has an "outperform" recommendation on Tassal with a price target of $4.90 a share.

The Tassal share price has been a strong performer over the past year as it delivered a gain of around 12% compared to a 2% increase in the HUO share price and a 15% drop in Clean Seas Seafood Ltd (ASX: CSS) share price.

But if you are looking for bigger fish to fry in 2019, you will want to read this latest free report from the experts at the Motley Fool.

Follow the free link below to find out more.

The post Credit Suisse warns this ASX small cap stock is likely to disappoint in February appeared first on The Motley Fool Australia.

While large cap shares such as Australia and New Zealand Banking Group (ASX: ANZ) and WiseTech Global Ltd (ASX: WTC) will take the headlines for their solid gains, there have been some equally strong gains being made at the small end of the market.

Three small caps on the move today that caught my eye are listed below:

The Clean Seas Seafood Ltd (ASX: CSS) share price is up 12% to 5.7 cents after the seafood company announced the launch of its SensoryFresh range. The company has high hopes for the range which uses Liquid Nitrogen Rapid Freezing technology to capture the texture, colour, aroma and taste of freshly harvested fish. Management has stated that: "Freezing high value, premium quality seafood is all about speed for optimum texture." This technology achieves this by freezing seafood in 22 minutes, around 10x faster than conventional freezing.

The Lepidico Ltd (ASX: LPD) share price has jumped 10% to 4.5 cents after the lithium miner announced that it has lodged a provisional patent application for a hydrometallurgical process named S-Max. The S-Max process produces an amorphous silica from concentrates sourced from a range of mica minerals, including lithium micas. Purified amorphous silica may then be sold directly or used as a feed to produce a variety of other marketable silica products. This complements the company's L-Max process which can produce low-cost lithium from alternative sources.

The Zenitas Healthcare Ltd (ASX: ZNT) share price is up 2% to $1.00 after the healthcare operator announced binding agreements to acquire Australian Home Care Services (AHCS) and Beleura Health Solutions for $4 million and $2.4 million respectively. AHCS is a leading home care provider in Victoria and New South Wales and Beleura operates two Allied Health clinics on the Mornington Peninsula. Management advised that ACHS is expected to generate gross revenues of $38 million and EBITDA of $2 million in FY 2019, with significant upside in both FY 2020 and FY 2021. This looks like another great acquisition in my opinion, making Zenitas ever more attractive.

The post Why these 3 small cap shares are storming higher today appeared first on The Motley Fool Australia.

Three that caught my eye are listed below. Here's why they have pushed higher:

The Change Financial Ltd (ASX: CCA) share price has moved almost 6% higher to 92 cents after the mobile banking company released its latest quarterly update. According to the release, the company's consumer offering now has over 160,000 customers using its award-winning platform. This led to customer deposits for the quarter growing by 19% quarter-on-quarter to US$22.9 million. In addition to this, management advised that its enterprise solution is progressing towards its launch and it has secured enterprise agreements with Central Bank of Kansas City, MasterCard, and Discover Financial Services subsidiary, Pulse.

The Clean Seas Seafood Ltd (ASX: CSS) share price has pushed 3.5% to 5.8 cents after the seafood company announced that its sales revenue year-to-date as of the end of the third quarter was $30.9 million. This is an increase of 23% on the prior corresponding period and I feel it puts Clean Seas Seafood in a strong position to achieve its full year sales revenue guidance of between $43 million and $47 million. A combination of increased sales volumes and better prices were behind the strong performance. In addition to this, the company announced that its new SensoryFresh products are being launched in international markets this month.

The Fastbrick Robotics Ltd (ASX: FBR) share price is up 5% to 20.5 cents in early trade. This morning the robotics company announced that EY-Parthenon has completed its research into the global addressable market for its Hadrian X construction robot. According to the data, 140,000 to 150,000 Hadrian X's would be required to build all low-rise buildings globally in 2018. Management has decided to target a minimum of 2% of the addressable market for Hadrian X over the next five years. While no details were given in terms of the projected value of the market, I expect it could prove to be a lucrative one.

The post Why these 3 small cap shares are pushing higher today appeared first on The Motley Fool Australia.

I think there's still quite a bit of upside left in the stock, which is likely to be heading towards $10 even as the herbicide and seed supplier posted am 11.8% drop in underlying earnings before interest and tax (EBIT) to $75 million.

But the market was expecting the loss that is mainly due to production interruptions and operating challenges in the Brazilian market. The first half tends to be a bit of a write-off for Nufarm anyway due to seasonal factors.

What's really getting investors excited are expectations of a big second half turnaround with management re-iterating its full year underlying EBIT growth guidance of between 5% and 10% and growing expectations that FY19 will be great year for Nufarm as it will see the benefits from recent acquisitions that should lift its earnings per share growth to around 24%!

Further, Nufarm said it is likely to be the first in the world to launch a land-based, sustainable, long-chain omega-3 canola solution for use in feed and human consumption.

Long-chain omega-3 is essential for human and fish health, and will ease pressure on fish population as fish is currently the largest source of omega-3.

Nufarm's omega-3 canola has been approved for use by the Australian authorities and the company believes it will get approval from the US and Canadian governments in 2019.

The stock looks cheap to me as it's trading on a FY19 consensus price-earnings multiple of around 14 times, which will drop further as the company is expected to maintain a double-digit earnings growth profile (albeit not at the same clip).

There aren't many stock in the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) with such a growth outlook and that makes Nufarm an attractive buying opportunity in my book.

It's exposure to offshore markets, including the US, means it is well placed to benefit from any prevailing weakness in the Australian dollar as the rest of the developed world lifts interest rates ahead of us.

I generally like agri-businesses even though it hasn't been easy for share investors to make a good return on agriculture-related stocks. Besides Nufarm, I think Clean Seas Seafood Ltd (ASX: CSS) also looks interesting as the fish farmer appears to have turned a corner.

But Nufarm isn't the only growth stock with a bright outlook. The experts at the Motley Fool have also identified three "disruptors" with a strong future.

Click on the link below to get your free report on these stocks and to find out why they should be on your radar for 2018.

The post Why Nufarm Limited is a buy even after a share price surge appeared first on The Motley Fool Australia.

The Yellowtail Kingfish supplier reported sales that surged by a quarter to $20.4 million as its net loss narrowed by 22% to $3.9 million in the six months to end December 2017, and noted a strong seasonal skew in earnings towards the current half.

This is because Yellowtail Kingfish grow best when water temperatures exceed 17 degrees Celsius. This means fish growth at its South Australian pens mainly occurs between November and May.

"Historically, only 15% to 35% of full year biomass growth occurs in H1 each financial year," said the company in a statement lodged with its results.

"Australian and International accounting standards require our fish to be valued at market value with increases in that value included in reported profit. This means that reported profit is much higher in H2, when historically 65% to 85% of full year biomass occurs, while operating costs are more evenly incurred during the year."

The company had reported a net loss in the first half of FY17 as well but managed to post a small full year profit of around $200,000.

Given the sharp narrowing in net loss for 1HFY18, its full year results should be substantially ahead of last year's net profit.

Clean Seas is also benefiting from higher farm gate pricing for its fish as well as the opening of its new processing facility at Royal Park, which will improve the company's cost base and provide capacity for it to process fish for export markets.

Shareholders may also get a "free kick" if Clean Seas wins its court battle with Skretting Australia where Clean Seas is suing for damages as it alleges that Skretting had supplied taurine deficient fish feed.

Management has reaffirmed its full year guidance with sales revenue increasing 21% to 33% to a range between $43 million and $47 million and a "significantly higher" than FY17 profit.

The stock is trading flat at 6 cents on the result but given that it has run up by nearly 82% over the past year when the All Ordinaries (Index:^AORD) (ASX:XAO) has gained 6%, it is perhaps not surprising to see the stock consolidate around these levels before heading higher.

Clean Seas is a good addition to your holdings alongside other outperforming food-related stocks such as A2 Milk Company Ltd (ASX: A2M).

Looking for other stocks that are primed to run ahead of the market in 2018? The experts at the Motley Fool have just the answer for you as they have uncovered a sector that is poised to make a big impact on our market.

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The post This small cap is tipping a big increase in second half profits appeared first on The Motley Fool Australia.

Four shares which haven't managed to climb higher today are listed below. Here's why they are ending the week in the red:

The Aconex Ltd (ASX: ACX) share price has fallen 2% to $4.67 despite there being no news out of the software-as-a-service company. But considering its shares have rallied strongly in recent weeks, today's decline is likely to be a bit of profit taking in my opinion. Investors won't have to wait long to find out if the share price gain has been justified. Aconex is due to hold its AGM on November 8.

The Bellamy's Australia Ltd (ASX: BAL) share price is down almost 3% to $11.86. Like Aconex, the infant formula and baby food company's shares have been on a tear recently. One leading broker still thinks they can go even higher, though. Yesterday Citi upgraded Bellamy's to a buy and increased its price target to $14.40.

The Clean Seas Seafood Ltd (ASX: CSS) share price has plunged 9.5% to 6.6 cents after returning to trade following its voluntary suspension. The kingfish producer has undertaken a capital raising to raise funds to support the on-going growth in Yellowtail Kingfish biomass and investment in farming and processing facilities. Approximately $7 million has been raised through institutional investors at 6 cents per share. A further $8.9 million is expected to be raised via an underwritten renounceable rights issue.

The Healthscope Ltd (ASX: HSO) share price has fallen 2.5% to $1.87 a day after its annual general meeting. Its appears as though investors were disappointed that management still expects full-year EBITDA to be flat at best in FY 2018. A drop in the New Zealand dollar overnight won't have helped either. Approximately 10% of its revenue is generated across the Tasman.

The post Why these 4 ASX shares are ending the week in the red appeared first on The Motley Fool Australia.

Four shares which have climbed more than most today are listed below. Here's why they are higher:

The Bubs Australia Ltd (ASX: BUB) share price is up 11% to 29.5 cents after the fledgling infant formula company announced that it has entered into a distribution and field marketing services agreement with Australia's leading pharmacy and healthcare distribution company HealthOne. This latest gain means the Bubs share price has climbed 44% since this time last month.

The Carsales.Com Ltd (ASX: CAR) share price has climbed 4% to $12.47 despite there being no news out of the company. Earlier this week the Australian Bureau of Statistics revealed strong vehicle sales in June across the country. It appears as though investors may be betting on Carsales having a strong finish to FY 2017.

The Clean Seas Seafood Ltd (ASX: CSS) share price has jumped 9% to 4.7 cents following the release of a sales update and guidance for FY 2018. Thanks to a solid increase in sales volumes, full-year sales revenue is expected to come in 18% higher at $35.4 million. In FY 2018 management has forecast sales growing to between $43 million and $47 million, which could arguably make it a bit of a bargain at the current share price.

The Santos Ltd (ASX: STO) share price has surged higher by 8.5% to $3.27 after the oil and gas company released its second-quarter update. Although production was down slightly, investors appear to be impressed with the way management has cut costs. Santos now has a full-year free cash flow breakeven forecast of US$33 per barrel, compared to US$47 per barrel at the beginning of 2016.

The post Why these 4 ASX shares surged higher today appeared first on The Motley Fool Australia.

At lunch the commercial kingfish producer's shares have jumped 9% to 4.7 cents. This means its shares have now gained 34% since the turn of the year.

Why have its shares jumped today?

This morning the company provided a full-year sales update and its FY 2018 sales guidance at a presentation to institutional investors at the Curran & Co Aquaculture Conference in Sydney.

According to the release, full-year sales volumes were 2,287 tonnes. This is a 13% increase on FY 2016's result, or 29% higher on a normalised basis which excludes the impact of one-off clearance sales.

As a result, full-year sales revenue is expected to be $35.4 million, an 18% increase on FY 2016.

What's next?

In FY 2018 management expects sales volumes to rise significantly to between 2,650 and 2,850 tonnes. This equates to a 16% to 25% year-on-year lift in sales volumes.

On the top line this is expected to generate sales of between $43 million and $47 million. Which is approximately 21% to 33% higher than in FY 2017.

In light of this, the company expects to return to profit in FY 2018.

Should you invest?

I've been very impressed with the way management has turned around the company's performance and believe it could prove to be a great investment at the current share price.

If the company delivers on its targets next year, I estimate a profit after tax in the region of $9.5 million.

This means its shares are changing hands at approximately 7x estimated FY 2018 earnings, putting it at a significant discount to industry peers Tassal Group Limited (ASX: TGR) and Huon Aquaculture Group Ltd (ASX: HUO).

The post Why the Clean Seas Seafood Ltd share price surged 9% higher today appeared first on The Motley Fool Australia.

The company announced earlier this month that it had secured its first international export contract. While not naming the counterparty, Seafarms says the contract is with a leading global retailer with more than 2,000 outlets.

The company says it has commenced international distribution of its Crystal Bay Tiger Prawns. The initial focus will be on 200 European outlets located in countries with high shrimp consumption. And yes, there is actually a difference between shrimp and prawns – although most of us would be hard pressed to tell the difference. (And to make it even more confusing, a shrimp in the USA is a prawn in Australia).

Seafarms currently has its major prawn farms in Queensland, but has an ambitious $1.5 billion project 'Project Sea Dragon', which would see 100,000 tonnes of Black Tiger prawns produced each year from locations in Western Australia and the Northern Territory at full production. To give you an idea, Seafarms currently produces around 1,500 tonnes per annum of Crystal Bay prawns.

It should be noted that Project Sea Dragon is still in its early stages though and Seafarms is operating at a loss currently.

The good news is that the company's environmental services subsidiary, CO2 Australia, is generating cash flow that will be put towards developing Project Sea Dragon. CO2 Australia recently announced that it had won further contracts under the Federal government's Direct Action Plans 20 Million Trees Programme. CO2 says a total of $8 million was awarded across contracts with 3 successful large-scale providers – including CO2.

It's interesting that Seafarms is yet another ASX-listed seafood producer, joining Clean Seas Tuna Limited (ASX: CSS), Tassal Group Limited (ASX: TGR) and Huon Aquaculture Group Ltd (ASX: HUO) on the ASX. Maybe Australia really is headed to become Asia's 'food bowl'.

Summary

It's clear that Australian produce is well accepted particularly in Asia and prawns could definitely be another winner. The obvious key to Seafarms is not its CO2 subsidiary nor its existing seafood farming operations, but its giant Black Tiger Prawn project.

The operation will require substantial capital funding to set up, but could deliver substantial gains if the company can pull it off.

The post Why the Seafarms Group Ltd share price is up 86% in the past month appeared first on The Motley Fool Australia.

The company's update revealed that sales in FY 2016 grew a massive 83% year on year to 2,012 tonnes. This is not only a big improvement year on year, but also beats management's full year forecast of 1,700 tonnes given in its half year report.

This makes it an impressive two consecutive years of strong sales growth from the Port Lincoln-based micro-cap. In FY 2015 the company produced sales of 1,098 tonnes, up 98% from 571 tonnes in FY 2014.

The good news for investors is that this run could yet continue thanks to additional news in the announcement that states it has signed a contract with Beston Global Food Company Ltd (ASX: BFC) for the distribution of its fresh and frozen Kingfish into China, Hong Kong, and South Korea.

The contract runs from June 2016 through to December 2017 and includes an initial shipment of 176 tonnes of frozen product. According to the update, 176 tonnes has fallen into FY 2016 sales figures, with at least an additional 340 tonnes expected over the remainder of the contract.

The company stated this about the new contract:

"This exciting development will facilitate the establishment of Clean Seas' Kingfish as a premium Australian seafood product in the Chinese and South Korean markets. Clean Seas and Beston will be working together to develop these markets, leveraging Beston's networks and relationships in the region and Clean Seas' outstanding Kingfish."

I believe this is positive news for the fledgling company and its shareholders. It is of course early days and investors shouldn't get too carried away just yet, but it is clear to see how popular Australian produce is in Chinese markets. You only need to look at the success of Blackmores Limited (ASX: BKL) and a2 Milk Company Ltd (Australia) (ASX: A2M) to see this.

Being a micro-cap Clean Seas Tuna would be a reasonably high-risk investment. But I do see a lot of growth potential in the company which makes it well worth adding to your watch list at the very least in my opinion.

The post Why Clean Seas Tuna Limited shares have soared 35% higher today appeared first on The Motley Fool Australia.

So What: Clean Seas, Australia's only commercial producer of Hiramasa Yellowtail Kingfish, recorded a loss before tax for the current half-year of $711k, compared to a loss of $1.933m during the same period last financial year.

The group's Kingfish is primarily sold to Australian, European and Japanese consumers at the high end of the sashimi market, but the share price response indicates that investors were disappointed with the result.

Highlights from the result were:

• Sales volumes increased from 215 tonnes in H1FY14 and 356 tonnes in H2FY14 to 511 tonnes in H1FY15 versus a full-year target of 1350 tonnes.
• Earnings per share were 0.31 cents, down from 0.47 cents a year earlier.
• Inventories increased from $0.9m at December 2013 and $0.8m at June 2014, to $3.5m at December 2014, primarily as a result of increased investment in pellet feed.
• Cash flow from operations is anticipated to become positive in Q4FY15.
• Research and development expenditure on the Southern Bluefin Tuna project remains minimised until a funding partner has been found.

What Now: Clean Seas' management considers that the company is on track to achieve 1,350 tonnes of sales in 2014/15, increasing to 3,000 tonnes per annum sales by 2018/19. Investors should remember that while it doesn't appear that Clean Seas is on target to hit its full-year target of sales, fish production is heavily weighted towards the second half when most fish are harvested.

The group's biggest opportunity, and perhaps the reason for the fall in the share price, is the Southern Bluefin Tuna project. The company's breeding program was suspended in 2010 after suffering massive losses without major success, however the proof of concept is enough for some investors to hold on for the long term.

The project's problems stem from the inability to grow the tuna beyond half a kilogram (note that a fish can weigh over 150kg), but it is believed that using a breeding tank in warmer waters would fix this issue. Only time will tell, but the big money will be made if Clean Seas can find a funding partner for the project.

The post Clean Seas Tuna Limited shares plunge 9%: Is it a bargain? appeared first on The Motley Fool Australia.

Background

The A50 index contains the top 50 A-class shares on the Shanghai and Shenzhen stock exchanges but is dominated by large financial firms, mainly banks and insurance firms, that stand to benefit from lower rates and the increased urbanisation of the country.

Investors can get access to the index by using an exchange traded fund, however there are no ETFs targeting the A50 listed on the ASX yet. Investors with an Interactive Brokers Group, Inc. (NASDAQ: IBKR) account can easily access the Hong Kong market and purchase units in the ETF named iShares FTSE/Xinhua A50 China Trkr (ETF) (HKG: 2823), or investors could get a little more strategic about it.

ASX-Listed Companies

Savvy investors will note that there is now a fairly large contingent of companies listed on the ASX that can provide exposure to China. Here are 12 great ideas:

• Milk and cereal producer Freedom Foods Group Ltd (ASX: FNP)
• Beef and crop producer Australian Agricultural Company Ltd (ASX: AAC)
• Cheese producer Bega Cheese Ltd (ASX: BGA)
• Wine producer Treasury Wine Estates Ltd (ASX: TWE)
• Almond company Select Harvests Limited (ASX: SHV)
• Fish producers Tassal Group Limited (ASX: TGR) and Clean Seas Tuna Limited (ASX: CSS)
• Asian-exposed big bank Australia and New Zealand Banking Group (ASX: ANZ)
• Services group Leighton Holdings Limited (ASX: LEI)
• Construction group Lend Lease Group (ASX: LLC)
• Woolworths Limited (ASX: WOW) has recently purchased a Chinese liquor distribution network
• And even potentially the ever-divisive Chinese clothing manufacturer Sunbridge Group Ltd (ASX: SBB)

Risky Business

The problem that some investors face with direct investments in Chinese shares is the perceived lack of transparency. The 12 companies listed above (potentially with the exclusion of Sunbridge depending on who you talk to) have the benefit of an ASX listing and all the checks and balances that are required to enjoy that benefit.

The post 12 stocks that could benefit from the China free trade deal appeared first on The Motley Fool Australia.

The agreement will come into effect in around 60 days and the majority of benefits will be seen over a two-year phased introduction period. The major tariff cuts are to:

• Dairy products (up to 20% tariff)
• Beef products (up to 25%)
• Sheep meat and wool (up to 38%)
• Seafood (up to 20%)
• Wine (up to 20%)
• Fruits and vegetables (up to 15%)

Interestingly the impact of the change is unlikely to be sector-wide as not all companies export to China, but an interesting side-effect could be that more privately held companies list in the coming year.

8 agriculture companies set to benefit the most are:

Freedom Foods Group Ltd (ASX: FNP) has a number of agreements to supply milk and related products to Chinese companies, and also has a strategic holding in New Zealand-listed A2 Milk Company Ltd (NZE: ATM), which does similar.

Australian Agricultural Company Ltd (ASX: AAC) produces beef and crops for international and domestic markets. The tariff reduction may well result in greater volumes of Australian beef being sold to Chinese consumers.

Bega Cheese Ltd (ASX: BGA) will benefit from a reduction in dairy tariffs, which should allow Australian cheese to be more competitively priced.

Wine producer Treasury Wine Estates Ltd (ASX: TWE) already generates around 12% of premium wine export revenue from China. A boost in margins or more competitive pricing should allow Treasury to shift more volume in the country.

Similarly, almond company Select Harvests Limited (ASX: SHV), Atlantic salmon producer Tassal Group Limited (ASX: TGR), Clean Seas Tuna Limited (ASX: CSS) and diversified food producer Goodman Fielder Ltd (ASX: GFF) could all be big winners over the long term.

The most important factor to remember here is that the free trade agreement is not going to suddenly cause a poor company to become a quality company. Many of the concessions will be phased in over two to three years, and the companies that are already market leaders will benefit the most.

The post China free trade agreement special: 8 agricultural companies ready to surge appeared first on The Motley Fool Australia.

Return on assets (ROA) is one measure of how a company uses its assets to generate a net profit. In years gone by Tassal concerned investors with a low return on assets, blamed on operational inefficiencies, a low margin export strategy, and ineffective marketing.

The group has recently abandoned its overseas export strategy and focused on the higher-margin domestic market which includes significant supply to supermarket businesses Coles and Woolworths Limited (ASX: WOW). Consequently the ROA in the second half of this financial year is forecast to hit 15%, which alongside an increasing salmon biomass points to a positive future.

The group has big growth plans via either expanding the size of existing fisheries or developing brand new ones. Moreover, growing consumer demand over the long term looks a strong tailwind for the business and its pricing power.

Fish farming businesses actually fall into the category of disruptive technologies and another aquaculture business on a much smaller scale is Clean Seas Tuna Limited (ASX: CSS). It's focusing on serving the growing appetite for premium Yellowtail Kingfish and posted an underlying profit of $1.25 million last year, with a reasonable outlook.

Aquaculture businesses remain subject to considerable risks however, including environmental hazards, competitive pressures and poorly executed growth plans.

Selling for $3.75 Tassal trades on 12.4x estimated earnings per share of 30.1 cents in 2015. If able to deliver on its operational objectives over the years ahead analysts' forecasts for strong dividend growth may support the share price to deliver decent returns.

The post Should you buy Tassal Group Limited? appeared first on The Motley Fool Australia.

Let me give you an example…

Coal seam gas drilling company Titan Energy Services Ltd (ASX: TTN) plunged over 60% today on news that it will earn EBIT of just $10 – $12 million in FY 2015.

Many considered the stock undervalued prior to this fall, with one fund predicting that it was trading on a forward P/E ratio of just 7 times. However, the fact that so many people oppose the hydraulic fracturing of prime Australian farm land is rarely mentioned.

Indeed, the opposition to coal seam gas has already hurt Titan, a fact I revealed in the the most widely shared article I've ever written. It was for this reason that I avoided the company in the past, and will continue to do so, despite the fact that it is now even "cheaper."

The profit downgrade was not directly linked to environmental concerns, however, I doubt they are helping the company. In fact, the main problem is that the CSG industry is drilling less. To quote the Managing Director, Jim Sturgess: "The CSG market is transitioning from the high growth, start-up phase that we've experienced for the past three years, into an operation and production phase."

At the end of the day, my concerns about the environmental and social impact of coal seam gas drilling might have saved me from making a poor investment.

It's also clear that ethical funds beat the market.  In fact, I think ethical investing is becoming more popular, so I've invested in Australian Ethical Investments Limited (ASX: AEF). Australian Ethical's Small Companies trust has returned 9.9% per annum over the last 10 years against 5.5% per annum for the S&P Small Ordinaries Index (INDEXASX: XSO), and I'd be happy to put my money with them.

Certainly, the fossil fuel divestment movement is gaining traction – it turns out many do want to protect the interests of future generations. And the divestment movement has support in high places. U.S. President Barack Obama has exhorted, "invest in what helps, and divest from what harms."

Ethical investing simply means allowing your ethics (whatever they are) to influence your investing. My point is that sometimes ethical investing is an advantage. So next time you hear someone say that ethical investors hurt returns by excluding great investments, remember Titan.

In case you think I'm picking on coal seam gas, let me give you another example. I personally think fish farms are both efficient and environmentally friendly, because they reduce the need for wild catch. However, some investors avoid aquaculture companies, usually because they are vegetarians. Some might say they have missed gains of 117% over five years by avoiding Tassal Group Limited (ASX: TGR). However, they have also dodged a bullet in Clean Seas Tuna Limited (ASX: CSS), which is down 85% in five years.

The bottom line is ethical investing has advantages and disadvantages – but there is no doubt ethical investors can outperform.

The post Could ethical investing be an advantage? appeared first on The Motley Fool Australia.

The demand for food products, from raw produce through to value-added manufactured goods is expected to soar in Asia and particularly China and other developing Asian nations.

Considering just 8 Asian countries represent close to half the world's population, and you can see why experts and analysts alike, expect demand for foodstuffs to soar. China, India, Indonesia, Bangladesh, Japan, Vietnam, Philippines and Thailand have a combined population of close to 3.5 billion. The world's population is estimated at more than 7.2 billion.

As average incomes in those nations rise, food is expected to be the next big thing in Australian exports, according to Tyndall Asset Management head of Australian equities Brad Potter. Expectations of Australia becoming the 'food bowl' of Asia have been mooted frequently, but more often than not, Australian investors appear to have overlooked the value in our listed agricultural assets.

Offshore investors on the other hand, have been only too willing to be offered those same assets, given the recent takeovers of Warrnambool Cheese & Butter Factory Co, and Goodman Fielder Ltd, the attempted takeover of Graincorp Ltd (ASX: GNC) and historical takeovers of ABB Grain, Australian Wheat Board (AWB) and National Foods.

So here are some of my tips for you in the food sector…

Select Harvests Ltd (ASX: SHV)

A grower and producer of almonds, Select Harvests has several tailwinds behind it, including rising consumer understanding of healthy eating, demand outstripping supply, and trading on a prospective P/E ratio of 10 times.

Tassal Group Limited (ASX: TGR)

Growing and selling salmon products within Australia and also exporting some product, Tassal appears to have overcome some of the initial setbacks it had in past years, and recently reported a 25% rise in operating profit.

Clean Seas Tuna Limited (ASX: CSS)

Like Tassal, Clean Seas also grows fish – only the company is focused not on tuna or salmon, but on Yellowtail Kingfish. Having had a few hard years, Clean Seas expects to return to profitability this financial year, 12 months ahead of schedule. It too may have finally turned the corner.

The post Is the Australian food sector your best bet on getting rich? appeared first on The Motley Fool Australia.

To start with, we have no control over the weather and increased supply from competitor countries can result in rapid changes in the realised price of goods sold, just like any commodity. Notably though, over the long term Australia's listed agricultural companies have performed well and recent takeover action has increased investor interest in the sector. Here are three of the best for investors willing to accept some commodity risk:

Australian Agricultural Company Ltd (ASX: AAC) is Australia's largest producer of cattle for export and from September 2014 will have a facility in Darwin dedicated to the export of processed meat into Asia. The company also owns a huge amount of land that produces feed grain, wheat, sorghum, and cotton. Earnings are forecast to grow strongly in coming years and could be set for a period of outperformance.

Select Harvests Limited (ASX: SHV) is the owner of almond orchards and grows, processes, packages, and distributes almonds. It is Australia's second largest almond grower and exporter. It also manufactures and sells a range of other nuts, dried fruits, seeds, and natural health foods in Australia, Asia, Europe and the Middle East. Select has benefitted from improving consumer interest in healthy foods and a two-year drought in California's almond growing region that has pushed up almond prices. Earnings are expected to continue growing rapidly in FY15 and FY16 as the company benefits from a lower Australian dollar and growing demand.

Finally, a riskier investment is Clean Seas Tuna Limited (ASX: CSS). Clean Seas has spent much of the last two years attempting to switch from a producer of Southern Bluefin Tuna to a producer of the in-demand Yellowtail Kingfish. The company's share price is up 190% over the last 12 months, but only 15% this year as investors await further updates about when the company will turn a profit from operations. Previous guidance was for FY15 to be a profitable year and any change will likely result in a significant jump or fall in the share price.

The post 3 agricultural stocks to beef up your portfolio appeared first on The Motley Fool Australia.