If Tassal got taken over at these prices, I'd be ropable. I want...

If Tassal got taken over at these prices, I'd be ropable. I want to profit off this for years to come - a takeover is great for a sugar rush but not for long term investing, particularly if you think it is trading well below fair value considering future potential (20% according to TP's of the two brokers on today's earnings).

Mark and the board are really hammering home the message of 'learning from salmon, growing into an international agri/aquaculture powerhouse that just so happens to be based in Hobart'. And to me it completely makes sense. Salmon is mature, it's hard to really grow that sector more. And if global supply starts to consistently out grow global demand, profits will decline pretty rapidly (not there yet). This is how the market sees Tassal:



The above is for one product, but that's really not what Tassal is set up to be. Mark and the board I think are trying to change that - not just in terms of a narrative, but in terms of performance. I think I have shown this graph before - it's the concept of a business focusing on 'spawning' across new horizontal markets with new products. To my mind, this is how we should be judging and valuing the performance of Tassal:



They're looking at the future of aquaculture and seeing it's probably going to be RAS, and reckon prawns is the place to be for now. They're using their salmon platforms for this newer higher growth area: their distribution networks into the likes of Coles, driving domestic demand through marketing/branding like Tropico, or their balance sheet and debt facilities, etc. And where to next after that? Well maybe blue carbon / seaweed, maybe finfish like barramundi, who knows.. but good to see that they are already thinking about the next industry leading business (from their annual reprot):