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HUO - Huon Aquaculture Group

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Huon IPO tipped to reel in $455m

THE founders of the country’s second-largest salmon producer, Huon Aquaculture, are expected to pocket up to $25 million in *initial proceeds through the float of the business this month.

Peter and Frances Bender started their Tasmanian-based farming operation 28 years ago and the business is now earmarked to debut on the ASX on October 23 as one worth between $415m and $455m.
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More: http://www.theaustralian.com.au/bus...-to-reel-in-455m/story-e6frg8zx-1227078284377

http://www.huonaqua.com.au
 
Floated at $4.75 on October 23rd, very little appears to have been stagged.
Trading range between $4.89 and $4.61 appears evenly balanced.

HUO i30 03-11-14.gif

The other two stocks in this sector are CSS and TGR.
Would anyone know of any others?
 
Hi Pixel,

Just ran a scan for Packaged Foods and Meats and it returned:
AYB
BGA
BAL
BUG
CZZ
CVS
CSS
FFI
FRM
FNP
GFF
MTI
PFL
TGR
WCB
YOW

But it didn't pick up HUO
 
debtfree said:
Hi Pixel,

Just ran a scan for Packaged Foods and Meats and it returned:
AYB
BGA
BAL
BUG
CZZ
CVS
CSS
FFI
FRM
FNP
GFF
MTI
PFL
TGR
WCB
YOW

But it didn't pick up HUO
Click to expand...

Thanks Mate,

What is your data source?
HUO is a very new listing; that's probably the reason.
On the ASX list, it appears as "HUON AQUACULTURE GROUP LIMITED | HUO | Food, Beverage & Tobacco"
 
Big drop to $3.70 - 20.2% drop

This announcement
http://www.asx.com.au/asxpdf/20150423/pdf/42y1s7qsjgnpdq.pdf

EBITDA forecast is now between $40-$45 million instead the original $52 million.

The extra supply (can I call it dumping?) of salmon around the world doesn't bode well for TGR Tassal either. I need time to study this stock. I really want a food stock or a stock I can eat. Missed out big time on CZZ (Calipano Honey). I don't own any food stocks. It's an area I need to start learning about.

Not sure if the downward trend has finished.
I like salmon. I think I prefer Tassal over Huon. Why? I see Tassal products in Woolies. I know Huon is more of a wholesaler but I am not familiar with Huon.

Can someone educate me or provide feedback? Thank you. I will admit that I am not interested in buying. One reason is a lack of funds but the second reason is that I like Tassal more if I did have enough funds.
 
Faramir said:
Big drop to $3.70 - 20.2% drop

This announcement
http://www.asx.com.au/asxpdf/20150423/pdf/42y1s7qsjgnpdq.pdf

EBITDA forecast is now between $40-$45 million instead the original $52 million.

The extra supply (can I call it dumping?) of salmon around the world doesn't bode well for TGR Tassal either. I need time to study this stock. I really want a food stock or a stock I can eat. Missed out big time on CZZ (Calipano Honey). I don't own any food stocks. It's an area I need to start learning about.

Not sure if the downward trend has finished.
I like salmon. I think I prefer Tassal over Huon. Why? I see Tassal products in Woolies. I know Huon is more of a wholesaler but I am not familiar with Huon.

Can someone educate me or provide feedback? Thank you. I will admit that I am not interested in buying. One reason is a lack of funds but the second reason is that I like Tassal more if I did have enough funds.
Click to expand...

If you want something to eat...

SHV - almonds
AAC - beef
AHF, A2M, FSF - milk
BGA - cheese
GNC - grains
FNP - bit of dairy and cereal
FRM - eggs
CSS - tunas
RIC - feedstock (although it seems safe to assume that you are not a farm animal)

None of these are recommendations. Just somehting to eat
 
Thank you skc and skyQuake.

Does anyone think food is going to be a good area to invest in? I think food exports will be a great opportunity in the future. I have no food stocks at the moment and it is a completely new area for me to investigate. This list is very interesting and some of them have done very well. Some are very recent IPOs. I won't be doing much for now until I can get more funds. How would someone 'predict' which food product will be in big demand in the near and long term future?

Has Huon 'value-add' to their product. This is something to investigate. It is one thing to grow something, harvest it and ship it somewhere. It might be something extra to process it, box it and sell it as a package. The demand for salmon should increase because salmon is perceived as a better 'meat' than beef or pork. Anyone want to agree or disagree? There is not much wild salmon around due to over fishing. So Huon and Tassal can hopefully fill in that gap with their farms? Again any comment?

I commented on Huon because yesterday's drop may have presented a 'bargain'. I didn't jump in because I cannot tell if it will go further down. I have not put a value on HUO yet. I have been watching TGR Tassal more. Tassal has a higher market cap and better market share.

If all food stocks (especially potential export food stocks) are very similar to each other, then maybe an food EFT might pop up. Time to investigate (when I get time). Sorry - maybe I should search "All I can eat" thread and talk about food stocks in general. Huon has been on my watchlist because I saw it go up last year and I like Salmon.
 
Faramir said:
Thank you skc and skyQuake.

Does anyone think food is going to be a good area to invest in? I think food exports will be a great opportunity in the future. I have no food stocks at the moment and it is a completely new area for me to investigate. This list is very interesting and some of them have done very well. Some are very recent IPOs. I won't be doing much for now until I can get more funds. How would someone 'predict' which food product will be in big demand in the near and long term future?

Has Huon 'value-add' to their product. This is something to investigate. It is one thing to grow something, harvest it and ship it somewhere. It might be something extra to process it, box it and sell it as a package. The demand for salmon should increase because salmon is perceived as a better 'meat' than beef or pork. Anyone want to agree or disagree? There is not much wild salmon around due to over fishing. So Huon and Tassal can hopefully fill in that gap with their farms? Again any comment?

I commented on Huon because yesterday's drop may have presented a 'bargain'. I didn't jump in because I cannot tell if it will go further down. I have not put a value on HUO yet. I have been watching TGR Tassal more. Tassal has a higher market cap and better market share.

If all food stocks (especially potential export food stocks) are very similar to each other, then maybe an food EFT might pop up. Time to investigate (when I get time). Sorry - maybe I should search "All I can eat" thread and talk about food stocks in general. Huon has been on my watchlist because I saw it go up last year and I like Salmon.
Click to expand...

The food sector certainly has some great businesses in it, whether these turn out to be good investments for you depends whether you are able to identify which ones are the good ones, and you avoid over paying for them.

I am a long term TGR shareholder, so I understand the basics of the salmon industry, I haven't done much work on the specifics of Huon, I know they do sell some branded products into Coles and Woolworths, and by the looks of it are investing more into value added products.

As I said I already own Tgr so am not in a rush to get into Huon, but I will do some more work on them and if they appear to be doing the right things and are cheap I might take some.
 
I never thought that an opportunity to acquire TGR and HUO shares at, what I regard, a reasonable price would eventuate anytime soon, but here we are, with a sham Greens senate enquiry and short term price adjustment due to Norwegian dumping and both entities are becoming very attractive investments most likely, ultimately, to overseas suitors. I have always invested on the premise of sustained long term growth profiles when choosing companies to invest in, however, in the case of TGR and HUO I see significant takeover/acquisition opportunities for global salmon producers. I regard the paramount risk in aquaculture is disease/virus infections in stock and this can have devastating results. For those of you who remember Western Kingfish ( WKL ), it destroyed the company. The best defense against this risk is biological isolation. This is achieved by farming in different geographical locations throughout the world and is the reason Marine Harvest ( worlds largest salmon producer ) has salmon farms in Norway, Chile, Scotland and Canada. Tasmania provides another level on biological security for global salmon producers in the event of disease/virus. Additionally, TGR and HUO are high quality / environmentally responsible aquaculture companies with unique access to the Australian market. The opportunity for a global player to move may be short lived as I am of a view that the Green’s senate enquiry will leave TGR and HUO smelling of roses and will, in fact, add to their credentials as ethical and environmentally responsible aquaculture companies. The value of these entities will correct to reflect this realization and a unique investing opportunity will be lost.
I am a investor in both companies and using this price weakness to accumulate more stock.

Disc- Opinion only, Invested in TGR and HUO (presently increasing holdings due to price weakness), DYOR.
 
Well, the market has decided to punish HUO since the profit warning a couple of months ago but for investors such as myself it has provided ,what I believe to be, a unique buying opportunity. I am surprised HUO hasn't started to appreciate in value like TGR. The recent announcement of the Parramatta Creek processing facility completion will help to put this company in the spotlight. I have attached a link to this announcement below.
I will continue to accumulate HUO at these levels.

http://www.abc.net.au/news/2015-07-09/huon-aquaculture-processing-facility-0807/6604668

Disc - invested in HUO ( Significant ) and accumulating. Invested in TGR. Opinion only.DYOR.
 
I bought into this stock a couple of months ago over Tassal and Cleanseas. In hindsight a bad idea as it was almost the same mkt cap as Tassal back then, but at least in Sydney does not have 1/5 the product presence of the Tassal products in Coles or Woolies.
 
joeno said:
I bought into this stock a couple of months ago over Tassal and Cleanseas. In hindsight a bad idea as it was almost the same mkt cap as Tassal back then, but at least in Sydney does not have 1/5 the product presence of the Tassal products in Coles or Woolies.
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I guess its a good learning opportunity, analyse why you chose HUO over TGR and see if you made a bad decision or an unlucky one. TGR has benefited from the DeCosti deal and the retail deal with Woolies and Aldi since your decision.

I bought TGR a couple of months ago, but my analysis is that in my case it was good luck rather than a good decision - the rumours were out there about the DeCosti deal but they were just rumours and I had no inkling of the retail deals.

My research did suggest that TGR was a better choice because of its relative cheapness compared to the intrinsic value I calculated and the stonger numbers on the metrics I consider in my research.
 
galumay said:
My research did suggest that TGR was a better choice because of its relative cheapness compared to the intrinsic value I calculated and the stonger numbers on the metrics I consider in my research.
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There are a raft of qualitative aspects that also lead me to believe TGR is the better company. It's approach to environment concerns, along with partnership with WWF and ASC accreditation go a long way, not to mention the strong history of concern for the shareholder (galumay - I assume these made part of your intrinsic valuation inputs)
 
The plummeting AUD is going to be a boon for aquaculture companies in Australia. Our aquaculture products are already regarded as the best in the world and with increasing demand from Japan and China, HUO, in particular, will benefit significantly by growing it's export market ......refer to recent ABC Rural article, hereunder.


http://www.abc.net.au/news/2015-07-14/japan-salmon-demand-huon-aquaculture-tasmania/6618280

I regard TGR, HUO and CSS as, potentially, the best investment opportunities in a generation as they move toward a more export orientated business model.

Disc - opinion only, Invested in TGR , HUO and CSS. DYOR.
 
tge oracle said:
I regard TGR, HUO and CSS as, potentially, the best investment opportunities in a generation as they move toward a more export orientated business model.
Click to expand...

Not sure if you're aware, but a very large portion of TGR's revenues come from the domestic retail market (about 70% from memory), and another 25% or so from the domestic wholesale market. So the AUD play may not be as significant in this case as you may expect.

That said, it will make Norweigan imports more expensive, so it may have more of an impact than I lead myself to believe.
 
Klogg said:
Not sure if you're aware, but a very large portion of TGR's revenues come from the domestic retail market (about 70% from memory), and another 25% or so from the domestic wholesale market. So the AUD play may not be as significant in this case as you may expect.

That said, it will make Norweigan imports more expensive, so it may have more of an impact than I lead myself to believe.
Click to expand...

Yes, tks Klogg, I am aware of both TGR and HUO's domestic market penetration and, in a way, that's precisely the point I am making. Both companies have relatively small export markets and it is my belief that the potential for increasing exports far outweighs the demand from the domestic market. If you have been a long term holder of TGR you may recall Pacific Andes selling out of TGR with a 19% holding a couple of years ago, the reason, TGR wanted to focus on the domestic market not export. FYI, Pacific Andes is one of the largest seafood suppliers to the Chinese market, I believe this was a lost opportunity by TGR. I hope PA runs the ruler over HUO , as they might get a more receptive response from them as they a evidently focused on the export market for their product.

Either way, investing in these companies will deliver solid growth in my view. TGR has already started to appreciate......HUO won't be far behind!

Disc- Opinion only. Invested in TGR, HUO and CSS. DYOR.
 
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