Question

According to impact of COVID - 19 on Tassal Ltd, do you think whether can invest in the company? If not, is there a better financial products, please make that recommendation.

Answer 1

Tassal Ltd is is an Australian company which is based in Tasmania and it is the largest supplier of Tasmanian grown Atlantic Salmon.

The impact of covid-19 has been immense on the global economy and the global economy has started to weaken and there is an expectation of impending Global recession which can lower the overall growth rate and earnings of the company because the overall supplies of the company in the domestic and international market is not met with enough demand because there has been a lack of disposable income of various people and it can be seen that in the long run, if the economies are going to crash, then this company is going to face the heat of adverse impact of covid-19 and even though the share price has not shown the impact due to instant recovery in the expectation of the investors after Reserve Bank of Australia has cut down on the interest rates, but in the long run,it is highly expected that there will be an impending recession that can negatively impact the overall business of the company and it will be having an adverse impact of the coronavirus upon multiple facets of the business so the company is expected to perform poorly in coming years due to adverse impact of the coronavirus on its negative earnings and growth.