tassals' sp on the rise (with more to go): afr

An article in this morning's AFR from Trevor Hoey:

http://www.afr.com/Blogs/Opinion_Hoey#808b5db8-f867-11e0-8054-32d00764bea6

The article says there seems more to go in Tassal's SP, with the SP up and relative volume up.

It says Tassal's recent revival seems to have coincided with management's ANN that the company is on track to meet consensus profit forecasts of $26.4m in 2011-2012. This translates into earnings per share of 18c. This indicates that the company is trading on a forward price earnings multiple of 8.6.

This is below the industry group average, and it could be argued that a re-rating is in order. The article says that because Tassal does salmon, it targets relatively high point food consumers. However, there is a strong push by health practitioners, due to its Omega3 content, and this should continue to support sales.