The Cleanseas shareprice surged another 16% following the release of their full year report on Friday, further widening the gap between the valuations of COZ and CSS.
The share price of Australian Salmon farmer Tassal lagged for years after 2008 as they implemented a long term strategic plan, investing in marine infrastructure, selective breeding technology and improving feed management and the survival rates of fish. Many shareholders didn't want to stick around, resulting in a gradual drift of the share price southwards.
But in the end, it paid off...the share price surged three fold from late 2012 to early 2014.
The point is that there is a blueprint for aquaculture stocks such as COZ and CSS to follow... they aren't stumbling in the dark, the success of Tassal makes it clear that their goals are achievable and the market knows this, which is why the Cleanseas share price has been closely tracking that of Tassal over the past couple of years, despite its much more speculative nature. I suspect the same may be true for COZ, eventually.
It is interesting to note that within the past week a sell order has popped up above the 0.100 mark. So it would seem someone out there is convinced that COZ is due to follow in the footsteps of Cleanseas.
COZ Price at posting:
6.1¢ Sentiment: None Disclosure: Held
