Well said. I'm still on edge whether to buy or not buy into SAN. I see a lot of good things in the future for SAN with the new CEO nonetheless.
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Thank you Iceman.
Excellent commentary.
And yes I brought a small parcel with the proceeds from selling AIA.
Very pleased to see the sp creeping up.
I think having the salmon farming at Stewart Island makes more sense than the Marlborough Sounds,where I believe the water is too warm.
I see their new second hand trawler San Granit is currently fishing the Chatham Rise.
Hopefully the expected increased performance and better yield from this vessel will encourage SAN to modernise their trawler fleet.
Boop boop de do
Marilyn
Comforting to know even an experienced guru like yourself is getting into SAN. Let the creeping up long continue.
Agree MM it will be interesting to watch this vessel's performance. I hear they have been having some teething problems getting the factory up to speed.
I am a bit disappointed that they have gone for a vessel this old to upgrade the fleet. I would have liked to see a much younger vessel
Mitch, yes the "focus on fresh" is being implemented by the new CEO and his completely revamped senior management and new structure.
Welcome aboard Percy 😀
They have managed so far to increase average return on each kilogram of wild fish caught, from 35c to 50c. Their lofty goal is to lift it to $1
So with that possibility and hopefully more water rights for salmon farms, I do not agree with Black Peter above saying they have little growth potential.
... and hey - you might be right. Just looked at the (inspirational) NZK growth curve and put SAN (the yellow line) as comparison next to it. While SAN (in my view more fully priced) grows slower - both are clearly correlated and both are pointing upwards. SAN's 10% growth in 3 months are nothing to be ashamed of either. Their might be more money in protein than I thought.
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Discl: I do like salmon ... and hold NZK :sleep:;
BlackPeter so if you hold NZK you probably realise that on average 8 to 9% of their salmon dies because NZK fish farms are in marginal locations caused by high water temperature and low water flow.
Sometimes the casualty rates for NZK salmon can be over 30%. Apart from the cost of lost salmon to the business it is less efficient to have a product which comes to market at unpredictable quantities.
SAN Salmon fish farms are in the cooler waters by Stewart Island, an ideal location for growing Salmon.