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Sapmer Slow To Recover From Share Price Dip

Sapmer closed last Friday with a share price of 18.55 euros. October has shown little fluctuation so far in the value of shares for the major French fishing company, with a low of 17.77 euros on October 2 according to Alternext Paris. After a severe slump in mid-September, caused by a devaluation of the Japanese Yen, this month is showing the first signals of some recovery in share worth, but values still remain substantially lower than the first half of the year.

The start of 2013 showed much stronger share price for the company, opening the year with a value of 25.00 euros. The first six months of the year showed relatively sustained levels on the stock market, hitting a low of 22.80 euros on April 25. A strong peak was witnessed in early February, with investors paying 28.50 euros on the sixth of the month. A major increase in activities and the worth of its tuna fueled the value hike of Sapmer’s shares. 

But Sapmer witnessed dramatic plummets in the value of its shares at the end of June after first experiencing a peak in trading activity shortly before the fall.  The last week of June and start of July another spike in trading took place causing prices to take a nose dive, and opening the second half of the year disappointingly. From June 27 to July 4, share value dropped considerably from 25.00 euros to 19.61 euros, 22% down.  The lowest value for 2013 so far was recorded in September, where share worth fell to just 17.02 euros.  It is unclear what caused this loss of confidence with investors.

A huge 98 percent escalation in whole tuna sales in the first six months of the year fueled strong performance for the French company from January to July, which was reflected by the value of its stock at this time. A six percent boost in total revenues was created by Sapmer when compared to the same period in 2012.

Sapmer has five purse seine vessels fishing for tuna, which grew from the amount in operation in 2012. These vessels fish for yellowfin and skipjack tuna in the Indian Ocean, with Japan being an important market for the company.

The major French deep-sea fishing company has been in operation since 1947. A processing activity of sashimi loins and tuna steaks makes up the second part of its business. In 2012 Sapmer achieved revenues of 93.1 million euros, of which 90 percent came from exportations outside Europe, mainly in Asia.

At the close of September, it was recorded that Sapmer had 3,474,093 shares. A large majority of 89.83 percent of those shares are held by Sapmer Holding PTE Ltd, while 8.94 percent belong to “Bearer and other shareholders”. Directors and employees make up the ownership of the remaining 1.23 percent of shares.

The company has been listed on Alternext Paris since July 2009 and generates most of its revenues on international markets. Sapmer also has activity in fishing toothfish and rock lobster, and owns Mer des Mascareignes, a seafood canning factory located in La Reunion with a production capacity of 9000 tons per year.