Again, down ramping without any scientific evidence or figures presented. Your arguments are purely anecdotal. ABC four corners relying on one set of numbers presented by Huon and using that to generalise across Macquarie Harbour and the wider industry is statistically wrong.
Huon has a record of breaking set limits while Tassal has always been comfortably within limits.
Huon could not keep their fish alive in 1H16 while Tassal's survival rate in MH was higher than in any part of the state. Huon made a statutory net loss of A$1.3m in 1H16 while Tassal made A$25.3m in the same period.
It is getting expensive for shorters to keep their position open. You lose at least 100 basic points (1.00%) of total value to your prime broker in commissions for setting up your short and then at least 5.6% p.a. grossed up dividends to pay back to the broker for keeping this position.
Shorters are already feeling the pressure and should be covering soon. Existing positions opened before ABC four corners are covering as we speak. Together with value investors bargain hunting, I'm afraid you don't stand much of a chance.
The cold and rainy winter has significant'y boosted dissolved oxygen in the water and Tassal's fish has grown substantially. Together with higher global salmon pricing to persist for the medium term as Chile and Norway faces supply constraints, the value of live fish will grow another 10 to 18% in FY17. CSIRO predicts a cooler summer this year and that will certainly help Tassal as well. This together of operational efficiencies, will drive earnings growth for the company
Haters will continue to hate, but you cannot win against a growing world population in need of quality protein farmed sustainably (feeding your fish while not putting pressure on limited natural resources like wild shrimp and bait fish). Tassal has plans to open up four 45-hectare offshore farms in Storm Bay, 1.8km west of Wedge Island in the South East of Tasmania, this will help boost capacity as well. Tassal will continue to be the salmon and seafood leader in Australia.
Long term investors were unfazed by ABC, so they will certainly not flinch in reading your unjustified claims.
Enjoy!
Ninja Tuna of the Bering Sea
TGR Price at posting:
$3.82 Sentiment: Buy Disclosure: Held
