Channel 9 Nightly News (Melbourne) Traffic Report has Tassal as a sponsor with a "Switch to Salmon" message. What bothers me a little bit is that apparently the company deems it necessary to try to boost supermarket sales to make up for lost restaurant and wholesale sales. Does this mean supply of salmon is currently exceeding demand? My other concern is that it seems the company is basing its planned tiger prawn expansion on its ability to persuade Australians to eat more prawns as a regular dish rather than just on special occasions. I far rather the company meeting an established demand rather than depending on growing one. Still, there was a bit of a scandal a couple of years ago when prawns from Vietnam were being sold in fish markets as Australian prawns, so I think prawns with a genuine Aussie brand should sell well. Tassal is one of very few ASX companies that appeals to me as being capable of doing reasonably well despite the coronavirus. However, although the shares seem fairly priced, I think that (as with the whole of the ASX) any big fall in American shares will drag the price down, so I am sitting tight at the moment Cantankerous James
TGR Price at posting:
$3.64 Sentiment: None Disclosure: Not Held
