TGR - Tassal Group

[truevalue]

My biggest concern about Tassal is that Atlantic Salmon is not native to Tasmania and is therefore more damaging to the local environment (waste product and problematic if they escape). Not being local also means they are more susceptable to fishy diseases and are less likely to cope with changing water temperatures etc.

Having said that they have done a wonderful job since merging the two businesses together and proven that this business is viable when you have scale (Mark Ryan was the liquidator appointed to manage the assets dont forget when the company last went broke)

Ticks all the boxes re consumer demand etc. The balance sheet is in solid shape. I like it. I just wouldn't want to wake up and find half the inventory has dropped dead overnight due to an unknown illness.

 

[pistol72]

i live in southern tassy and must admit that i take some interest in TGR allthough ive never held.you can clearly see that they are expanding.there is more activitty in the water(pens)the value adding plant is running a night shift,recently advertising for employment,a new hatchery bieng developed.a new salmon shop in town which seems to be doing quite well.
what concerns me is the quality,are they comprimising for quantity?imho the smoked salmon is way inferior to other high end salmon...texture flavour and appearance.the portions are reasonably priced according to quality.there local competitors product absoloutely kills them in quality even though the send there fish to SA for value adding.if you want to try an awesome smoked salmon ,have a crack at huon aquacultures product,hot and cold.
as for bieng envirementally friendly,i guess thats debateable.5 years ago you could go anywhere down here and catch a feed of flatties in an hour ,now you could spend 3 hours and not get a bite..hmmm,just an observation!
P

 

[Rainmaker2000]

Thanks for sharing a local view....I understand TGR is now Tasmanias second largest employer (next too gunns)

I agree too that, for some reason, their quality is inferior to Huon........I really put that down to the Woolies supply chain........they treat food like absolute garbage.......and while relatively small quantities of Huon go through Woolies, TGR massive amounts must be bought opportunitically by Woolies and put on ice......my only guess....TGR's supply chain is very good but something is going wrong....

I notice too, TGR, the 'little devil's' have now slipped Tassie Salmon into the 100 gram Superior gold brand packs, which traditionally come from Norway.......Superior Gold is still bout 52% of packed market and a very strategic buy when you could raise capital at 2X today's share price

Compared to gunns, salmon industry is a godsen environmentally.....but I agree, what is environmentally friendly about this scenario....that's why I can't muster the sympathy for Chile, who have shown no respect for the fish or nature......I of course my have simpathy for any working people caught up in it, but knowing a bit about Chile's economy, it would be good if their working class were given a go in the first place!

 

[doogie_goes_off]

If you think there aren't dead zones and ecosystem skewness associated with fish farming then you havent been near one. Farming is farming, with the right scale of 'natural dilution' it's no real problem. I reckon Tassal is going to struggle to grow although I'm sure the market for the product is just fine. I would consider buying them if they started to diversify or acquire other performing assets in the seafood area.

 

[tge oracle]

A new article which may be of interest.

http://www.growfish.com.au/content.asp?ContentId=13658

As for some of the concerns about disease etc. I think Tassal's history speaks for itself. They have been producing for 6 years now and there have been no significant issues concerning the health of their stock.
Nearly all fauna and flora farmed / produced in Australia is not native to this country. Companies have manged to create viable and sustainable industries despite this impediment.

I have been invested since the float ( 50c ) and they have performed well during this period with a 25c in dividends in addition to capital appreciation of the share price.

They are at the next stage of their growth profile having essentially reached critical mass in the domestic market. This is one in which they will need to expand overseas, or, develop new product lines which may include other fish / marine species. If they can achieve this goal then we can look to a growth profile more like the trend from 06-08. Either way, I am anticpating slow but steady growth with returns above CPI and bank deposits.

Note; this is not a recommendation to buy, just my thoughts on the outlook for TGR.
DYOR.

 

[copashark]

thanks for the article on the chilean industry. This can only be good for tgr in terms of potential market growth over the medium term. . I've moved in on today's low, it looks oversold at the minute.

 

[omac]

I bought in a few weeks ago after having an eye on them for a while.

I believe that Australia has good protocols in place regarding biosecurity, disease treatment, density managment etc. As long as fish density doesn't become too high then disease shouldn't become a major issue.

The impact to the brand if they were to overdevelop there assets would no doubt be very damaging, since they are selling on the environmental credentials of tassie, so I daresay the development would be closely monitored by the business and government alike (possibly a few greenies too?)

Interesting to here the local view posted earlier, I am heading down this week, and am keen to check out the shop in Hobart and also compare to the competitors products. The frozen product I buy here from Safeway is pretty bloody good (I'm not a foodie though).
Sad to here about the drop in flatties, but any activity will have an impact on the environment despite what marketing will say. Hopefully the impact isn't too bad, or not associated with the salmon farming (maybe you caught them all)

 

[tge oracle]

I have a few thoughts for consideration;

1. Walmart will stop buying Chilean Salmon so somebody will have to fill that shortfall. Walmart is the largest supermarket chain in the world so I imagine their Smoked Salmon purchases are considrable. I will be interested to hear how TGR's export plans are progressing.
2. The domestic economy is slowly recovering , high quality products such as Smoked Salmon will see increased consumption. As with employment, this will lag the earlier recovery signs.
3. Pistol72 - The flatties are not what they were anywhere in Australia , not just Southern Tassie...come to NSW and you can spend all day and not get a bite! sign of the time's , I think, not aquaculture farming.

 

[tge oracle]

Another recent article pointing to a bright outlook for TGR.

The report suggests Salmon prices may rise by 20 percent this year and that there has been steady demand for Salmon products.
It will be interesting to see how TGR is performing when their results come out.

http://www.growfish.com.au/content.asp?ContentId=13756

 

[dan-o]

BRW has recommended this one in the most recent issue. Those who are following has anything much happened since the last post in August? SP is still near its 12 month low..

 

[UMike]

BRW has recommended this one in the most recent issue. Those who are following has anything much happened since the last post in August? SP is still near its 12 month low..

Yes quite a bit.
a fair drop after the Final reports. Then steady through annual reports to most recently a new CFO.

Finnally got 5,000 @$1.7 after watching it for a long time, got the 4c dividend. Slow and steady mover from now in I think.

 

[omac]

Interested on thoughts regrading the lagging share price. Im looking at topping up. Is websters still deciding what to do with their share or have they sold? I also remember reading that this years growth wasn't quite what some analysts expected but, I didnt think enough to make the SP stagnate as it has, not a bad thing when topping up though. Im reading all current announcements etc and results (present and future) seem to be good.

Any thoughts appreciated.

 

[Bean0]

Interested on thoughts regrading the lagging share price. Im looking at topping up. Is websters still deciding what to do with their share or have they sold? I also remember reading that this years growth wasn't quite what some analysts expected but, I didnt think enough to make the SP stagnate as it has, not a bad thing when topping up though. Im reading all current announcements etc and results (present and future) seem to be good.

Any thoughts appreciated.

I have been a Forum member for some time, however this is my first post. There was an article on Tassal on the ABC News today that may influence some the thinking of some people, either as comsumers or as shareholders. Unfortunately I cannot post the link as I have not made my obligatory 5 posts as yet. If you do an ABC news search using 'tassal' and 'suzuki' you should soon pick up the link. The article talks about Dr David Suzuki as being an industry detactor. I am not sure what bias the article has but it is probably worth reading. The article was linked with tonights 7.30 report but I did not see the show tonight.

By way of disclosure I am a holder of TGR stock.

 

[UMike]

I have been a Forum member for some time, however this is my first post. There was an article on Tassal on the ABC News today that may influence some the thinking of some people, either as comsumers or as shareholders. Unfortunately I cannot post the link as I have not made my obligatory 5 posts as yet. If you do an ABC news search using 'tassal' and 'suzuki' you should soon pick up the link. The article talks about Dr David Suzuki as being an industry detactor. I am not sure what bias the article has but it is probably worth reading. The article was linked with tonights 7.30 report but I did not see the show tonight.

By way of disclosure I am a holder of TGR stock.

Hi the link is here

What do these greenies want ffs. To over fish the ocean or to attempt to find a sustainable way of life.

btw anyone who opens his argument like this

Three years ago he fired the first shot in the salmon wars, berating the National Press Club for eating Tasmanian salmon during his speech.

"You all sat and chowed down on farmed salmon and obviously you don't give a s**t about what you're putting into your body," he said.

On unsuspecting yet generally knowledgeable people doesn't really deserve to be listened to anyways.

Yep I am also small TGR holder

 

[omac]

UMike

I think its something to be interested/concerned about. If you make your sales on environmental credentials, then you need to show you can farm sustainably otherwise it's hypocritical and consumers will see right through it.

The antibiotics is a concern for me. While all animals need antibiotics from time to time overuse may lead to resistance and possible disease outbreaks. The article postulated they use the majority of antibiotics, but then they are 65% of the industry so that would stand to reason. The concentration is the concern (units per L, fish per unit area, whatever the units used are)

Development of vegetarian based pellets and reduction in antibiotics would be good things anyway (antibiotics aren't cheap).

 

[Rainmaker2000]

I'm quite a big holder of this stock and also can boast a signed copy of Suzuki's autobiography on my bookshelf.....

The environmental integrity of salmon farming is a matter of business and ethical balance.......and unfortunately is a matter of delicate tradeoffs...

Farming a salmon at global low costs will by definition not be the 'environmentalist ideal'.......Tassal I'm guessing is not an environmentalist organisation........but I hope an organisation committed to expanding margins and replicating those margins in future growth....

For his activism and his contribution to environmentalism globally, Suzuki is nothing short of a god.......and he's entitled to continue to influence our overall system where he sees fit............

Unfortunately, until the consumer will pay a premium for environmental sustainability in line with Suzuki, it's not in Tassal's interests to deliver it...........

Instead Tassal will deliver the Tassal brand of environmentalism through their 'pure tassal brand' and genuine attempts to ensure Salmon production expands without us become Chile.........

I note that Tassal may well end up being a global leader in environmentally friendly Salmon farming........they are certainly putting much money into it...............but will their version of sustainability meet the test that experts like Suzuki would request.......probably not

Capitalism depends on the consumer 'giving a damn' and paying for it...........most of the time, the consumer does not care much

Does anyone one on this forum eat chicken?????I'm suggesting to you that you would not eat chicken if you saw how they are farmed

Not out of interest for their welfare, but your own.......and yet, the word keeps going......and people, lots of people eat the chicken that comes out of today's chicken factories

 

[tge oracle]

TGR have delivered solid results for the half year. It is not easy selling premium products during an economic downturn. Fortunately, this one was short lived and TGR should increase it's product sales and market penetration over the next year or two.
They are supported by a competent management team that has a clear/defined growth strategy which includes new product lines and overseas markets for their produce.

I continue to hold and expect to do so for the long term.

Note: DYOR , I am not a financial adviser and the above is my opinion only.

 

[UMike]

I also hold.

I thought the results were better than solid under the circumstances.

I will hold off getting more though atm.

 

[robusta]

Just wondering why the sp is heading south?
I am a small holder and new investor is Tassal out of fashion, too capital intensive or viewed to have limited growth potentual?

 

[UMike]

It has gone ex-dividend.... All of 4c.

Seemed to go down in sympathy with CSS. Or was that just a co-incidence.