Stockchase Opinions

Bill Shaw Arctic Glacier Income Fund AG.UN-CSE BUY ON WEAKNESS Feb 19, 2008

Distribution is not too bad. Have done a good job of integrating the smaller acquisitions they have done over the years. Management team seems to know what they are doing. If there were a bit further pullback in price, he would consider buying for his fund.
$12.000

Stock price when the opinion was issued

food processing
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DON'T BUY
Had a distribution cut. Had Debt/EBITDA of 3.6%. Higher than he would accept in an operating business. Summer has been cold and wet so they are being squeezed operationally. 96.8% payout ratio.
HOLD
Got hit with an investigation by the Justice Department in the US because of too much market share. Had to discontinue distributions. If you own, Hold for some possible recovery.
COMMENT
Suspended distributions. Future is very unclear. This company and Reddy Ice are under investigation for potential price manipulation. Could be a big win for them if they are cleared but could also be disbanded because of a loss.
SELL
Management broke the law. Its going to go through a huge investigation.
DON'T BUY
Classic example of a company that made a number of acquisitions, financed it with debt and, at a certain point, cash flow came in less than expected and created issues with the debt. Any time you get involved in legal issues in the US such as collusion, he would not own the stock.
SELL
(Market Call Minute.) If you are going to buy at trust, you might as well get the distribution so he would Sell. You can get much cleaner plays.
COMMENT
Great contrarian play. One of the leaders in the ice field. Their main problem is lawsuits over price fixing. Settled in the US but not yet in Canada. Longer term he expects it will do pretty well. Doesn't have a clean balance sheet. Will look at it again in a few months.
DON'T BUY
Why bother with this one. Avoid it. Have had its problems. High debt level.
DON'T BUY
He was discouraged because they had so many legal problems that they had to deal with. Also, financials didn't look very good. Have lost about $51 million over the last 6 months.
COMMENT
He hasn't followed it in years. It got overlevered at some point and may still carry some debt. He needs to take a closer look.