I will use my second blog post telling you about one of the best performing industries around, the Norwegian Salmon Industry. I have been writing about the industry for years and in the meantime some of the salmon stocks is up tenfold in value. So, what has been the driver behind the salmon stocks’ returns. I will say the ever improving salmon prices.
Salmon prices are up 50% compared to last year and have for the time being a nice positive trend forwards. Salmon prices have historically had a nice period running up till Christmas.
Here I give you an illustration over the Oslo Seafood index over the last years. The index is mainly built up by salmon stocks. Since the beginning of 2012 it is up 500%. I have not heard of indexes outperforming the Seafood index in this period. In my book this rally has its outspring in the demand and supply of salmon. I have had faith in the industry believing the demand side would lead the way resulting in higher salmon prices. The supply side is constricted by regulatory conditions.
One of my favorite salmon stocks the last years Salmar is up tenfold if you add received dividends. I started covering the company around the beginning of 2012, and has been one of the best stocks around since.
My coverage started with a big belief in the salmon industry as a whole. My belief was the demand side would exceed the constricted supply side and as a result higher prices.
I know some of my followers on Twitter has doubled their money in these stocks. I have not been alone in believing in the industry. Analysts have given buy recommendations for years. One of the best industries around.