TGR (ASX) Tassal Group Strategic Thoughts

Originally posted by bug1: ↑

We under-performed the market today.

There is extra selling pressure, i expect some got in just for the result, not expecting to hang around, but its been 10months since people have had the opportunity to get out much above $3.70, so we have some volume to wear down to go much higher.

If anyone seems updated broker guidance, updated price targets etc, it would be handy if you can pass it on, i think they normally come out a couple of days after.

Another thing mentioned in the conference call, Proserpine prawn farm is getting solar panels, i think it was in FY23 (or CY23?)

And Salmon farm farms are going to have some vision shared publicly, which could be good PR, and a good time waster for NOFF (im sure they will be examining it and trying to keep count of instances of fish poo).

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I'm starting to put my Tassal shares in the same mental category as the ANZ shares I've held since about 2004... I'm never going to lose any money, but it feels like I'm never going to make a capital gain either! I can live with that, but I'm happy to be wrong as well! In the meantime the 4.5 to 5% dividends get reinvested. Hopefully we'll be re-rated at some point. It's a very low risk hold or accumule below $4.00.

As another holder commented earlier, I'd be happy to see Tassal with a zero dividend policy for a couple of years and put all that money straight into repaying debt. I suppose by opting to reinvest dividends it helps Tassal and serves the same purpose.

I recall Mark saying in the meeting that if he could choose anywhere in Australia for farming prawns it would be Prosperpine. It seems we really got lucky with the location, and then the neighbouring land becoming available. I like how it's on the eastern seaboard and we are using our existing knowledge and technology from salmon farming to constantly reduce costs. I've spent a bit of time reading the Seafarms page. Gee, they have an immense road ahead of them. Being a shareholder there would be an exercise in supreme patience. I know you've been on that page too. Growing a lot of prawns is easy but doing it profitably is another matter entirely.

I like the slick marketing for Tropic Co. and the website. Our prawn operatios are profitable, slowly scaling up, and on target. When/if SFG starts production (in the remote Northern Territory) with their huge ambitious project, we'll already have a household name brand established and hopefully available most of the year. They'll be selling into a market where there's Tassal's Tropic Co tiger prawns, and everything else below that. It would take them years to become profitable and efficient -- even if their operations get up and running. By that stage we will already be established as the market leader.

The solar panels are a great idea. I'm kind of surprised they weren't already installed from day one. It feels like someone suddenly had the idea to install them. It surely would have been an easy decision to put them in as an afterthought.