The Benders are both an asset and a liability to the company. They have a reputation as being good fish mongers and had a vision to position the company to produce a premium product (nursery, fortress pens, well boat, processing facilities, feed barges, new leases) that has been quite capital intensive. The capital has now been sunk and requires a return on invested capital. But what has concerned me is that they strive to produce a premium product yet can't position themselves to take advantage of this premium product. The big advantages they have are provenance, sustainability and traceability, yet only now are they looking to broaden their distribution channels to achieve a better pricing outcome (forced on them by a pandemic). The vision to produce a premium sustainable product should have simultaneously been accompanied by a review of where to position your product, using the advantages of provenance, sustainability and traceability. Let's hope that long suffering shareholders are finally rewarded, because achieving a peak 10% ROIC in 2017 (its being going downhill since) doesn't cut it! Happy to discuss if they want. Further, more regular updates and interaction with shareholders would help build trust and confidence. Bottom line its time to deliver.
HUO Price at posting:
$2.93 Sentiment: Hold Disclosure: Held
