Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Sanford touches record high

Sanford touches record high as value-add strategy may be garnering interest

By Rebecca Howard

Oct. 2 (BusinessDesk) - Fishing company Sanford shares hit a record high Monday as the company's value-add strategy may be gaining some traction, although trading was light.

The stock recently rose 3.3. percent to $7.95, having climbed as high as $8 earlier in the session. It has gained 14 percent so far this year.

Last week Amalgamated Dairies, an investment vehicle for the Goodfellow family, said it had raised about $21 million reducing its holding in Sanford to 24 percent from 27 percent, creating a new pool of investors.

"They have been slowly selling down their stake for some time now. So the stock has gone from being very, very illiquid to having a modicum of liquidity and retail have been a part of that buying so it creates more ongoing liquidity, which makes it a more interesting and viable story for other investors," Forsyth Barr analyst James Bascand said.

Bascand said investors may also be digesting recent changes in the company: "There's been a large turnaround story here. People had ignored Sanford for quite some period of time because it was tied up by a few major shareholders and hadn't really been any structural change for a very long time and it was underperforming from a return on equity perspective," he said. "People are getting their heads around it and are liking what they are seeing."

New Zealand's largest listed seafood company lifted its first-half profit 25 percent as the benefits from selling more higher-value fresh seafood offset the impact of lower prices for frozen commodity products and disruption from adverse weather. Sanford is turning its focus to extracting more value from the seafood it harvests through its inshore and deepwater fishing boats and salmon and mussel aquaculture units. It is investing in new fishing boats, developing higher-value brands for its products, and selling more fresh produce to top local restaurants.

Bascand said trading is extremely light with only one trade at the $8 level. There was a trade lodged at $8.72, but it was immediately withdrawn. Bascand said it was likely one trader putting in an "opportunistic selling price" which was cancelled when the market didn't see it as a fair representation of value.

He rates the stock as 'outperform' and has a 12-month target price of $7.80. The next news flow would like come at its annual result, due in mid to late November, he said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Statistics: Food Prices Increase 7.4 Percent Annually
Food prices were 7.4 percent higher in July 2022 compared with July 2021, Stats NZ said today... More>>

REINZ: Market Activity And Prices Continue To Ease, First Home Buyers Start To Return To The Market

New Zealand’s winter property market continues its recent trend, slowing from the pace of sales and price rises of last year — properties stay on the market longer and median prices dip... More>>

FMA: Cigna Admits Making False And Misleading Representations
Cigna Life Insurance New Zealand Limited has admitted to making false and/or misleading representations to customers in proceedings brought by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko... More>>

Retail NZ: Welcomes Return Of Cruise Ships

“Cruise visitors were big spenders in retail prior to COVID-19, and retailers in Auckland will be celebrating the arrival of P&O’s Pacific Explorer this morning... More>>

ASB: Full Year Results: Building Resilience Today And For Our Future

In its 175th year, ASB has reported a cash net profit after tax of $1,418 million for the 12 months to 30 June 2022, an increase of $122 million or 9% on the prior year... More>>

Commerce Commission: Draft Determination On News Publishers’ Association’s Collective Bargaining Application
The Commerce Commission (Commission) has reached a preliminary view that it should allow the News Publishers’ Association of New Zealand (NPA) to collectively negotiate with Meta and Google... More>>