MHG EKS that article is a little scary but a lot of "may" and "could" baked in. I'm underwater too but ... ‘Break Even’Prices are likely to stay low the rest of 2011 and 2012 as global supply is expected to rise 250,000 metric tons in the next 18 months, according to Nordea Markets, which sees prices at 31 kroner per kilogram this year and an average of 24 kroner for next year.
At that level prices “should be enough for Marine Harvest to break even,” said Dag Sletmo, an analyst at Oslo investment bank ABG Sundal Collier. Any lower will “raise fears of financial distress,” he said.
“2012 seems challenging and supply for the next 1 1/2 years is already swimming in the sea,” Sletmo said.
Demand for salmon will rise once the decline in spot prices trickles through to consumer markets, Marine Harvest Chief Executive Officer Alf-Helge Aarskog said in an interview in Santiago Nov. 9. “There is a time lag there,” he said.
Dead money, maybe, for awhile but I want to be in this space and they are the big dog. I also see them addressing the disease and quality issues facing the industry better than others. |
