TGR 0.00% $5.22 tassal group limited

Thanx...i should have been more clear..the precise...

  1. 290 Posts.
    Thanx...i should have been more clear..the precise issues.....warm water and international market are of course real.

    The myth is that they significantly impact profit and following logic share price.

    Tassal in recent past (5 years) makes much higher profit margins on domestic sales than international....so selling domestically is a no brainer unless you were following a broader, longer term strategy, which they were.

    Warm water adds to costs....yes, but is not responsible for lower profit margins per se, because TGR has dramatically been lowering their costs as a proportion of revenue

    My point was people point to perceived negatives just cause price is down. While these two things are real, many things are real. It is a myth that these two things are as significant as people say.

    Tassal will make about 20 cents per share this year....on a PE about 7.....that equates to an earnings yeild of about 14.2%....pretty hard to say it is overvalued....the kicker is it accounts for tax but does not pay tax
 
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