TGR 0.00% $5.22 tassal group limited

It's always good to see more press coverage on Tassal. Just on...

  1. 290 Posts.
    It's always good to see more press coverage on Tassal. Just on the press to, I saw Tassal's first television advertising in Sydney yesterday. Amazing to think just a salmon producer can afford to do this. For example, as big as the meat industry and seafood industry is, who else can afford tv.

    Just on the article, while I welcome the coverage; it's funny how share price drives sentiment.....not other way round. The two negatives sound logical but are essentially mythical.

    The 'negative' two explanations for share price: international market and warm water.

    (1)Tassal has never been a big player in the international market and has never really expressed an ambition or a need. The move to servicing only local market is earnings accreditive as it would have been for every year of the last 10. Tassal can grow significantly just in this market but as a long term business has always wanted a 'foothold' internationally

    (2) Warm water has added to costs. The finanicals over last 3 years have shown a massive decrease in overall costs of producing fish and massive increases in profit per fish.

    "Why disappointing profit then" The plain facts show that Tassal has been selling fewer fish as revenue than say, 2009. "Why"...because they have remade their entire operation end to end....

    Profit per fish is up massively....overall revenue has not followed same trend...

    What business would you prefer....a high margin enterprise that's expanding....a lower market enterprise that's expanding?

 
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