NZK - NZ King Salmon

[IAK]

Mmmmm smells fishy to me lol. Better hope they get consent before the election. Otherwise there's the risk that the Labour/Greens etc may not be as amenable as the current government i.e. less feed = less fish.

http://www.nzherald.co.nz/business/n...ectid=11792610

[iceman]

Mmmmm smells fishy to me lol. Better hope they get consent before the election. Otherwise there's the risk that the Labour/Greens etc may not be as amenable as the current government i.e. less feed = less fish.

http://www.nzherald.co.nz/business/n...ectid=11792610

There is very strong and vocal opposition from several groups to King Salmon being in the Sounds, full stop. To me it would make perfect sense to move the farms further out where water flow is better but I suspect any applications by King Salmon will be strongly opposed and will end up going through a long and very expensive legal wrangle.
I don´t think they have much future in the Sounds.

That´s why I have not invested in KS but instead have invested in SAN who have their salmon business in Big Glory Bay of Stewart Island where they have reasonably good local support and a significant space for expansion.
Increased salmon farming can provide a significant exonomic benefit to NZ and the market for the product is there. There is no doubt in my mind that a Labour/Green Government would implement a moratorium on expansion as Labour did last time.

[BlackPeter]

Mmmmm smells fishy to me lol. Better hope they get consent before the election. Otherwise there's the risk that the Labour/Greens etc may not be as amenable as the current government i.e. less feed = less fish.

http://www.nzherald.co.nz/business/n...ectid=11792610

another biased, bad researched and hyped up Herold article ... I guess it is free, but not good. Just look at the dramatic language they use for a slight retraction of an amazing uptrend down to the MA30:

King Salmon shares have fallen since Guy's January 26 announcement amid concern the proposal will run into opposition and become a protracted process, although the peak-to-trough decline was a less-than-devastating 6.5 per cent and the shares have recovered some ground to trade at $1.34.

Is this really what the Herold scribe was seeing - a minor touch of the MA30 at no volume at all? Looks like a perfect uptrend to me.

NZK.JPG

Re NZK - sure, moving their farms to places with more fresh water circulation would be good for the environment, it would create a significant number of additional jobs, and yes, it would be good for NZK as well. Whats not to like about it unless you are one of the people trying to stop any change ...

[BlackPeter]

Think there is a lot of rough water to be experienced in this stock.

http://www.radionz.co.nz/national/pr...borough-sounds

You realise that this is not about the environment ... iwi are just annoyed that they didn't get salmon farming places in the sounds ... and now NZK might get some ... even if it would be just a swap (i.e. environmental neutral vs additional pollution).

[BlackPeter]

Still in a nice uptrend (above MA30).

However - chickened out (with some gain) given the risks around resource consent swap and iwi objecting due to them feeling they missed out on consents for their own iwi salmon farming operation. Add some Greenies (it is election year after all) into the mix and the risk is in my view neither calculable nor manageable.

Bit of a pity ... but shy of companies with incalculable political risk.

GLTAH!

[iceman]

Still in a nice uptrend (above MA30).

However - chickened out (with some gain) given the risks around resource consent swap and iwi objecting due to them feeling they missed out on consents for their own iwi salmon farming operation. Add some Greenies (it is election year after all) into the mix and the risk is in my view neither calculable nor manageable.

Bit of a pity ... but shy of companies with incalculable political risk.

GLTAH!

Sadly I think you are right BP. Ridiculous that we find ourselves in this position in NZ for an industry that should be growing and providing significant employment and earnings

[Lola]

Sadly I think you are right BP. Ridiculous that we find ourselves in this position in NZ for an industry that should be growing and providing significant employment and earnings

Quite right...and watch the drama unfold at the EPA hearing in Wellington this week and next into the application by TTRL to dredge the seabed off Patea and help develop another potentially significant string to the countrys economic bow. The " protesters "are mainly school children brain washed by their hopelss parents., and fishing companies telling fibs. Hopefully the committee hearing the arguements will see through the charade and allow this company to proceed for the benefit of all NZDers.

[RGR367]

Nice 1st half profit I say considering I got in at 1.14 after their IPO Gut feel at least was right at that time.

[BlackPeter]

Nice 1st half profit I say considering I got in at 1.14 after their IPO Gut feel at least was right at that time.

No doubt - they are an interesting company, they have a natural moat and they are in a growth industry. My problem with them is not their (current) profitability, but the resource consent process in an election year. This could go well (fingers crossed) and the current share price will look cheap.

However - it is as well possible that Greenies and iwi make a dogs breakfast out of the process ... and I don't dare to think what they are worth if they don't get their consents swapped.

I learned in previous investments the hard way not to rely on common sense in politicised resource consent applications. Prefer others this time to take the risk, but wishing all holders all the best.

[macduffy]

Some bad press in Australia for the salmon farming industry.

http://www.abc.net.au/news/2017-03-3...ction=business