Another company that invested in better processing facilities was Select Harvest (SHV). Since they put the new facilities in around 3 to 4 years back, their share price went up by 5 times (500%). This was not all related to the investment in facilities, however if played a very big part.
All the money has already been sunk into this infrastructure, so the reward for Huon should be seen in FY16, and even more so in FY17 when it's all complete. It's a good time to buy, I bought some recently.
The guy running Huon is experienced, and he hasn't taken much money off the table, so he is backing himself. I like the look of this company.
The lower AUD is helping to make Huon's competitor's imports more expensive, and Huon's exports are now also cheaper for other countries to buy, so the currency devaluation is a win win for Huon. As a result their margin should lift, plus their sales are already good/growing. I hope that they are heavily targeting exports and the marketing of the exports, as they are in a great position to take advantage of their produce.
Asia has a very strong demand for fish, and it is growing every year as their wealth grows, there are big opportunities for Huon in these markets.
Huon is very well placed to take advantage of the world's increasing demand for food, add to this the beautiful Tasmanian waters and hence the great tasting seafood and it's a certain winner in the short and long term.
HUO Price at posting:
$3.30 Sentiment: Buy Disclosure: Held
