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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (42377)	4/22/2011 3:25:19 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78530

Marine Harvest is not really a small cap. Yahoo numbers are way off: My numbers 3.574B Shares @6.6 NOK/each *0.185 (US$/NOK Xchange rate): 4.36B$ in market cap. Equity is about 12B NOK or about 3.35NOK, this stock trades at 2x book. in 2008 the stock went below 1NOK when they racked up a huge loss because their Chilean operation got wiped out, because of a disease. Diseases are one of the big problems with sea farming, once a site get's infected it's almost impossible to control the spread in water and the whole crop of fish is lost or possibly even worse, the site is lost because disease cannot be controlled and the infectant stays. Kind of strikes me as unsustainable to issue dividends in excess of earnings with such a high risk operation as they have done the last couple of years. based on estimated earnings for Y2011 (they should get north of 1NOK/share if everything goes well) the PE is below 6x so the stock is in fact cheap. Great find!