While I understand what the Fair Value Adjustment does,, I have been cautious to look through that to the underlying earnings. there have been instances of companies having a large asset base and still going into admin. For TGR, the cash flow statement is critical, due to the capital intensive nature of the industry.
I would be much happier for TGR to be conservative with it's FVA. If and when Salmon prices correct, having excessively large movements (+ and -) on the P&L and Bal sheet can cause some investors to treat the company with some caution.
Having said all that, it will be interesting to read the results when they come out.
HT1
TGR Price at posting:
$4.14 Sentiment: Hold Disclosure: Held
