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Seafood companies rise on Oslo Børs Tuesday afternoon and pull the seafood index by more than three percent. Salmar, Grieg Seafood, Leroy Seafood, NTS, Salmones Camanchaca and Austevoll Seafood are among the companies that get up the most Tuesday afternoons – and all of these actions are between four and eight percent.
– I am surprised It goes up a little a lot. The market looks optimistic about price developments this spring and forgets that there are a lot of fish in the water, "says Tore A. Tønseth, Seafood Analyst at Sparebank 1 Markets.
"No time to increase the exposure"
Tønseth points out that the brokerage is reluctant to the seafood sector and has a neutral recommendation and sales for most of the shares .
– We believe that the stock market underestimates salmon volume in the future. We believe that the fall in prices this fall will be deeper than the market assumes. According to the analyst, the biomass of fish slaughtered in the second half of the year is nine percent higher than that of the previous year
He points out that the moment is not come for investors to increase their exposure to the seafood sector, and reflects the sharp decline in prices in recent months. Salmon prices fluctuate more than before and have become one of the most dangerous commodity prices in the world in the last ten years.
– First, the growth potential of the sea must be released to the market, and we will see how that is. The fish on the way to the market have eaten a lot of food and we will see it in full strength in August and September, with a rather strong increase in volume and prices will drop. Tønseth
Positive Investors
Shareholder Paul Harper in DNB Markets says the recovery is partly characterized by foreign investors who see the price of salmon stocks relative to expected profits (so-called price / earnings, or P / E, journ.anm.) in corporations and they believe that stocks are cheap if you expect stable profits in advance.
If an investor seeks low P / E stocks, it means going into value stocks.
– It is difficult to say how long this preference will last for valuable stocks. Rising interest rates reduce the appetite of the growth rate to a greater extent a share of value, so if interest rates continue to rise, this trend may continue, says Harper .
Harper claims that since January, there has been general optimism and consensus among investors
– It is a good development of salmon prices, while the development of costs is relatively controlled, explains the victory of the course.
Earlier on Tuesday, brokerage firm Kepler Cheuvreux announced that a new salmon party was waiting. It updates recommendations on Marine Harvest, Lerøy Seafood, Royal Salmon and Grieg Seafood fish farms for team purchases.
– We are taking more salmon shares in the purchase. We continue to suspend Salmar because we think it sounds expensive, but otherwise we have a very positive view of the sector, says Christian Olsen Nordby analyst Kepler Cheuvreux at TDN Direct.
According to Olsen Nordby, the main focus of the analysis is an attractive picture. in the short and long term.
– This is due to the fact that supply in the market by 2019 does not seem to be too high since the 2018 biomass generation appears to be relatively moderate on the growth side, which makes the year 2019 very strong, he says to TDN Direkt
From 2019, the analyst will see the regulatory conditions in Norway and Chile likely to exclude the growth of the company. important offer. (Terms)
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