With the growing global population and demand for seafood, the fishing industry presents interesting investment opportunities. In this article, we will analyze how to invest in fishing companies and fishing stocks. We will look at the major publicly traded fishing companies, assess the risks and rewards, and provide stock investment recommendations for those looking to capitalize on this vital industry.
Overview of publicly traded fishing companies
Some of the major publicly traded fishing companies and stocks to consider investing in include Mowi ASA, Maruha Nichiro, Austevoll Seafood ASA, and Clearwater Seafoods.
Mowi ASA is the world’s largest producer of farmed Atlantic salmon. The Norwegian company has operations in several countries and trades on the Oslo Stock Exchange. With growing global salmon demand, Mowi offers a way to invest in salmon aquaculture.
Maruha Nichiro is a Japanese seafood company involved in fishing, processing, distribution and sales. Trading on the Tokyo Stock Exchange, Maruha Nichiro provides exposure to wild catch fishing as well as aquaculture.
Austevoll Seafood ASA is a Norwegian fishing company targeting Atlantic salmon, white fish, and pelagic fish. The company owns fishing vessels, fish farming operations, processing plants and distribution infrastructure. Its stock trades on the Oslo Exchange.
Clearwater Seafoods is a Canadian integrated seafood company involved in harvesting, processing and distribution. It offers exposure to shellfish like scallops, lobster, clams and coldwater shrimp.
Assessing risks and rewards of fishing stocks
While fishing stocks can provide worthwhile investment returns, there are also notable risks to consider:
– Overfishing and declining fish stocks – Environmental changes affecting key fishing areas
– Volatile commodity prices and earnings
– Government fishing quotas and regulations
– High operational costs of vessels and processing
However, with the overall growth in seafood demand globally, well-managed fishing companies have potential to deliver shareholder returns. Backward integrating into processing and distribution also allows capturing more profit margin.
Due diligence is required in assessing sustainability of targeted fish stocks, geographic diversification, financial health and management strategy before investing in fishing industry stocks.
Investment recommendations for fishing stocks
For investors looking to gain exposure to the fishing and seafood industry, here are some recommendations:
– Invest in a basket of fishing stocks across different geographies and species to mitigate risk
– Focus on companies with aquaculture operations which can supplement wild catch fishing
– Favor stocks like Mowi ASA which are not purely dependent on wild catch fishing
– Seek fishing companies with downstream processing and distribution arms
– Monitor government fishing quotas, regulations and sustainability metrics as part of due diligence
While not without risks, well-run fishing companies with geographic diversification stand to benefit from the long-term growth trajectory in global seafood consumption.
With growing population and prosperity driving seafood demand, the fishing industry presents interesting investment opportunities in stocks like Mowi, Maruha Nichiro and Austevoll. However, risks around overfishing, regulations and commodity pricing need to be assessed. By diversifying across stocks and favoring integrated fishing companies, investors can prudently participate in this vital industry.