Some quick general points i have noticed since looking;
I was surprised the lengths the industry goes to ensure everything is going to as planned, video monitoring, continual reporting on the web page, working with independent NGOs to ensure compliance. (ASC,WWF)
Working with WWF on multiple project, of particular note is the Peruvian Anchovies Fisheries, which provide ingredients for fishfood Tassal use, pretty good win-win there.
WWF has a web page about Tassal at http://www.wwf.org.au/about-us/partners/tassal
I listened to some of the concerns by activists about Macquarie, and being a leftie im normally sensitive to those sorts of views, but i think they have taken a wrong turn somewhere... (for lack of a better description)
I really like the long term strategic plan, even though i cant find it defined anywhere in a clear document, just a few words scattered here and there. Plans for growing the business out to 2025, 15% ROA (i think), and in the short term growing fish sizes to optimise profit.
The seafood acquisition is strategically important, it seems important to have some more control over that distribution channel to avoid being a victim of the big supermarket chains, and maybe also as a foot in the door to other non-finfish farming.
The leases are important strategically as well, but the planning and development of new leases seems to have a credible path, so not as much of a limitation as i thought.
Huon, Tassals biggest competitor is in a very bad place. Its one thing for them to complain their competitors arent playing by the rules, but they are also complaining about one of the umpires as well. They really should be focusing on improving themselves first, maybe they could lead by example...
The negatives;
I feel there is room for improvement in financial reporting, but i cant quite put my finger on what is missing, more revenue breakdowns maybe.
Prices are really good right now, there might be some downside risk to the SP when low price come around.
I think the company has lots of potential growth, but it has to try and moderate itself, slow and steady organic growth could go on for a very long time, but if it expands too fast with acquisitions it might get messy.I only have a small amount, at this stage i think they are a good candidate to hold long term, no pressure, im not loading up looking for a quick payday, will try slowly acquire over a few years if opportunities arise.Oh, and i wonder if there is any scope to expand to NZ, i had a quick look at companies over there and didnt see anything real big. I think the industry has a way to go before it matures from a stockmarket POV.(well, it started of as a few quick points)
TGR Price at posting:
$3.87 Sentiment: Buy Disclosure: Held
