Scorcher of a summer for the Witzøe family.
The SalMar share rose again by three percent on Thursday, and has thus increased 100 percent since ultimo January/primo February. The jump in the share price comes on top of a cash dividend of NOK 19 per share.
Just lately there haven’t been all that many news items swaying share prices, apart from the financial services firm Kepler Chevreux upgrading its recommendation on SalMar on Tuesday from Reduce to Hold.
Optimism
According to Pareto Securities, the SalMar share looks set to earn NOK 25.32 per share in 2018. This implies a so-called P/E (price/earnings – editorial remark) multiple of 17. That’s not cheap, and testifies to the optimism of the finance market on behalf of this share.
As with Marine Harvest, SalMar is now being traded at an all time high.
Expectations
The plunge from sky-high share prices to the price on salmon that is now hovering close to this year’s lowest, on just over €5 per kilo, is astonishing. However, shares are priced according to future expectations – not on how the scene looks today at this very point in time.
The seafood exchange Fish Pool is currently executing annual salmon contracts at NOK 60.90 (€6.37) per kilo for 2019.
Gustav Magnar Witzøe, son of SalMar founder Gustav Witzøe, is formally identified as principal shareholder in SalMar via the investment firm Kverva. Kverva owns 52.46 percent of the shares in SalMar. This block of shares is currently priced at €2.7 billion.
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