I totally agree about the risk, but if managed well it could pay off quite well. Clearly a 1000Tpa fish farm in the US is only capable of supplying fish to a very small niche of US restaurants and elite deli's. Even if they get the 4000 tpa up and going it is such an insignificant volume in US terms. 300 million locals = 900 million meals per day. If you get into the EU and Canada that number probably increases by a factor of 2.5.
There are clearly very different market segments. Gourmet fresh - where they are now. Mass frozen - where vietnam takes them. Branding and positioning will be the key to success. If Porsche can bring out a boxster and Cayman without cannabilizing the 911 (as they have done very successfully), AAQ should be able to do it in the fish business.
Let's face it, if the fish proves moderately successful, someone is going to jump into the mass frozen space. As shareholders, it may as well AAQ than some other competitor.
AAQ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
