looks like great value here to me. agree it is a medium term growth stock rather than a pure dividend play for me too.
the legal and environmental issues will hurt sentiment for a while, but it is up to the company to defend themselves which they have done a reasonable job at so far, and more importantly to deliver on financial performance which will drive the sp fundamentals towards $5.
if they can achieve the ROI they promised when raising capital recently, this stock will definitely be above $5 within 12mo.
the broader salmon market supply demand issues are very much in their favour and they will achieve major revenue and margin growth if they can avoid environmental issues and bring their product to market in fy 18 and 19.
I'm already overweight so I'm probably biased and reluctant to top up further right now, but i think this will be back above $4 before results are announced. it probably needs some institutions to spot the value and buy in larger volume than the retails are before it will turn around. there will be a lot of funds hunting for value in the mid cap industrial space in july as the banks and miners are not looking appetising and they need to find a home for their money (unless they deploy more funds overseas but that is not the investment mandate of most such funds) after many have increased cash holdings through may/ june.
TGR Price at posting:
$3.76 Sentiment: Buy Disclosure: Held
