Aker Seafoods (AKS:OSL) harvests, processes, and sells seafood from regulated fisheries that are and will remain renewable if properly managed. They are among the largest employers in Norway’s fisheries industry, and one of Norway’s leading producers and exporters of fish products.
With a book value of 12.59 NOK and the stock currently trading at about 7.50, this is a discount of about 40%. I don’t know a whole lot about the fishing industry, but I imagine it is fairly cyclical and dependent upon people being willing to open up their wallets to eat at restaurants. Glancing through the annual report, the only potential problem I saw was Aker’s balance sheet as they seem to have a lot of debt relative to equity. However, this ratio has improved year over year due to Aker’s refinancing of debt and raising of additional capital.
So as the economy perks up a bit and people start to go out to eat again, I would suspect that a company like Aker will benefit disproportionately. to non-cyclicals. And with Aker trading at such a large discount to book value, there just might be an added margin of safety.
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