Market Gap and drop, what have we missed?, page-108

What disease? What higher temps and lower oxygen level? I think already covered this. Tassal was forced to destock completely with early harvest in 2015 and look at the SP and its recovery. It is worth noting that back then Tassal had lower volume capacity and there was no spike in prices because that only begun in late 2016 to early 2017. They managed to produce great statutory profit and CASH FLOW during the period that was no doubt their darkest days to date.

Capex is never a bad thing as long as it is to cover expansion to produce more growth so I dont know why you disapprove of this. Tassal is never going to move quickly to offshore simply because they already have okehampton bay. Do people forget about okehampton bay or something. The leases that they are going to delist and moved offshore were not currently in use so they are not moving anything at all. There are no fish in those leases, they are not and were not in use because they are low flow and shallow waters. The move offshore allow for almost unlimited expansion and politically an extremely ingenious clever move. The fortress pens technology are already there and tested by HUON so that would save significant amount of development costs. They just need to build pens and BUILD their new storm bay farms, which is an energetic, extremely high flow farms.

Offshore farms are merely the next step after okehampton bay. At this point they are concentrating on okehampton bay. The added cashflow from that development would then be used to build the offshore farms in storm bay. So short to medium term and long term expansion already covered. What not to like?

The only reason why the SP is down is because of ord minnet downgrade, the same dudes that maybe accumulating right now...

International salmon price, diseases and whatnot has nothing to do with their downgeade considering that the same people who downgrade TGR did upgrade HUO. Both TGR and HUO have significant presence in macquarie harbour and yet the contradiction? They both are also growing the same kinds of salmons and export are part of their strategies. There is no price collapse btw, none. Prove? Look at historical salmon prices and corresponding profit and cashflow TGR generate. The price also has been declining since MAY.

Aquaculture is some of the only undervalued staple stocks in the asx at the moment and there is no doubt that experts know this and thus accumulating or whatever else they do.