Agree - TGR should get some love. The following are my thoughts on why Aussie Agriculture stocks (in general) are not going rising substantially.
1. Small market cap - TGR is the biggest in Aquaculture and yet it is less than $600m - it would not register on most analyst to t/o radars.
2. MIS - So many aussies got burnt on MIS, that they have stayed right away fro the sector due to the risks. I know TGR is not a MIS - but it is in Agriculture, so potentially is "tarred with the same brush".
3. Environmental Risk - Aust is a very risky place for any Agricultural stock. Weather events affect both cash flow and profitability. Income is variable and so valuing a stock is very difficult and the risk factor in any valuation could be quite large.
4. Sovereign Risk - While ever you have the Greens conducting inquiries into the industry, wanting more regulation and the fact that they have been in government in Tasmania, for a foreign investor, is an unknown factor that needs to be factored into the price you are willing to pay.
While I have mixed up both t/o and Aust investors - I think that the above would provide some reasons why the sp has been struggling to climb and hold the price increase.
HT1
TGR Price at posting:
$4.01 Sentiment: Hold Disclosure: Held
