hiya bug,
welcome to TGR. I always welcome your research and analysis so good to see you have found TGR and 3.81 is a good buy price.
I have liked the fundamentals of tgr for a while and so bought last year in the low 4s.
it had been rising nicely but then the cap raise took the wind out of its sails and it dropped almost 20% from 4.90 to low 4s again, then it hasn't been able to get back up since.
having said that, the recent environmental and sustainability concerns have been the major drag on the share price, especially with huon attacking tgr for their own strategic goals.
for me, it all comes back to the fundamentals:
1) tgr is currently developing a large increase in salmon stock compared to historical levels, at a time when prices locally are strong and when there are supply issues for other key supply nations such as norway and chile.
2) they have made a clearly complementary acquisition in de cost but it will take 1-2 years for the full synergy benefits to flow through at least
3) they are investing now for medium term growth which has a high likelihood of success as a commodity
4) the environmental and social concerns appear under control to me from reading all the media stories and company announcements
5) shorts are low and decreasing
6) directors are buying and funds bought strongly into the capital raise
7) it is on a low peg relative to its growth outlook
8) it is a profitable company with a solid dividend
9) it is a defensive mid-cap with growth prospects in the ASX which is going to struggle to find too many growth stories in a low-growth economy, so companies such as TGR may become a crowded trade.
Im already full invested in low 4s, but i am planning to reduce some other holdings in order to accumulate a few more TGR shares at these levels.
TGR Price at posting:
$3.87 Sentiment: Buy Disclosure: Held
