Yeah, I'm just guessing, if someone asked you to explain why this stock is so cheap on an earnings (and maybe asset) basis.....its reasonable to guess that, "Well, the market does not think the earnings are real".
A few years ago, 'bigger fish' were a greater proportion of 'earnings growth' or more accurately, 'asset revision'. Now,adjustment of biological assets was only round 3 million.
Now cashflow for the half looks pretty good (and last result too)...around 19 million in operating cashflow for the half V around 18 million Profit before tax...
Plus a depreciation expense of round 8 million V a CAPX of 16 reflects a move towards maintenance CAPX (not quite there)
Tassal is a fish company, it seems reasonable on whatever accounting base, that it is valid that fish are part of its valid asset base....it would seem valid that if those fish were 'wiped' out in a freak event, earnings were adjusted accordingly
I do want the price to rise a little....Singapore shouldn't be able to buy this thing up for $1.50...its just getting to be ridiculous, but then there are so many undervalued stocks at moment.
TGR Price at posting:
$1.29 Sentiment: None Disclosure: Held
