TGR 0.00% $5.22 tassal group limited

I think the advantage we have over short sellers is a long term...

  1. 394 Posts.
    lightbulb Created with Sketch. 602
    I think the advantage we have over short sellers is a long term outlook. Or, at least, we don't have a short term outlook! We don't need to sell, and we believe in the company long term. Shorting involves costs for each day the short position is ongoing. If l held a heavy short position on a p/e 10 agriculture company which reported a solid first half result, I wouldn't be feeling too confident today.

    People aren't going to stop eating salmon and prawns. Demand will only increase as population grows. Meanwhile, we enjoy the luxury of a healthy dividend and a clear pathway to growth from a company with a solid track record.

    We don't need to do a thing except for holding, re-investing dividends, and perhaps topping up if the price weakens towards $3.00. I see very little risk for the buy-and-hold investor. The risk is with the shorters. Say TGR drops to the dreaded $3.00. It's a only ten percent drop (gain) for shorters.

    Short sellers carry the real risk. They're punting that the share price will decrease in the short term. I wouldn't like to have big money bet against TGR. I'd feel much more confident as a long term holder. A contributor on Limewire was making a similar point yesterday.

    In fact, we can both be correct. Maybe they're right. In which case the shorters will make some short term profit. But we will average down at a hypothetical $3.00 and profit on the inevitable way up. Our (shorters and long term holders) positions don't need to be mutually exclusive!
 
watchlist Created with Sketch. Add TGR (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.