Insiders smelling a news release?

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668 Posts.

21/04/15

12:12

Post #: 15125774
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Originally posted by Pedroloco ↑

Tassal's plan to buy De Costi is not to get a stronger foot hold in the Wholesale Salmon market. Tassal's announcement of the 12th Feb 2015 notes "Strengthening and broadening its product offering from Salmon to other seafood is "on strategy ".

One would hope that if Tassal has identified De Costi as a profitable business that they would leave it to run the way it is currently is rather than using it as a vehicle to undercut the market. News reports have also stated that Tassal believe that their skills and knowledge with seafood logistics and distribution would help improve the De Costi operations, which would make it more profitable. I am sure De Costi will continue to sell Huon Salmon and Huon would still need to be supplying De Costi and competitive prices.

The opportunity for Tassal to commence exports again is a very real one with the lower Australian dollar, but I am not convinced that the market is there. Unfortunately China's overspending is starting to catch up with them and I am sure the Chinese will not be buying Salmon when the pinch inevitable comes.

The fact that Tassal is not reliant on exports makes it such a choice stock. It can only be effected by the domestic economy/ issues and cheaper imports (which the lower AUD will prevent). This is why I cant understand why it is being sold off.

I still cant believe that people are still selling this Gem, but I will keep buying it all the way down.

I am keen to get peoples thoughts on the new Tassal Fish By Products factory. I really believe that this will produce significant profits to Tassal from 2016 onwards.

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Insiders smelling a news release?

TGR Price at posting: $3.27 Sentiment: Buy Disclosure: Not Held
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Insiders smelling a news release?

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