The takeover target is an interesting theory. I am not convinced...

The takeover target is an interesting theory. I am not convinced it would likely happen due to the CAPEX requirements and the balance sheet, but if the price goes low enough, sure. The Foreign Investment Review Board would wreak havoc, because of all the land / water rights, regulatory permissions, safeguards, etc. But still, it would be good for the share price!

No doubt some existing Norweigen salmon farmers would love it too. And why not:

• Mowi has a PE of 207, and since the internarnational prices started rebounding, their SP has gone up 25%.
• Leroy has a PE of 20, moderate debt, and their SP is up 50%
• Sal Mar has PE of 23, low debt, and SP is up 40% from March 2020 lows (wonder what these folks are doing different, might look into them!)
• Bakkarfrost has PE of 211, and despite near zero earnings, their stock price up 10% since October when prices started rebounding

Wrapping up Tassal's into their operations, they'll get a huge bump on the PE multiple.. the market will value their company between 2-5x the value they pay for Tassals, and potentially even more because they'll start having positive earnings to report. Mind you, if this happens, I want to be paid in equity not cash please.

Meanwhile TGR has dropped around 20% since the bottom of the international salmon prices. I have noted before that a good reason for this is they are not so affected by them - most their sales are domestic, so 85% of revenues are really unaffected except beyond domestic competition / dumping issues. Still, at some point, it becomes so cheap that they may make a meme about it...