AGT Food & Ingredients (AGT.TO)

They have dominance in Saskatchewan and in Turkey. They signed on an agreement for Kraft. A lot of people are moving to alternate sources of protein. Their additives are gluten free and lentil based.

This company provides vegetable-based proteins, a lot of pulses and a lot of beans, into food products. This has tremendous exposure to the US with distribution to Kraft (KRFT-Q) and a lot of the other US food companies. With the interest in growth of gluten-free foods, their business has taken off. Dividend yield of 2.25%.

(A Top Pick March 18/14. Up 44.66%.) He thinks food is a long-term theme. Currently, this is in the consolidation phase, but it will go higher. If you own, continue to Hold.

Second lien notes. 9% yield. Feb. 14, 2018. These bonds have a prior claim on the assets. It has had a good run, but still a good yield. Thinks they will get called out early.

(A Top Pick Oct 22/13. Up 75.88%.) This has done extremely well. They are one of the biggest distributors of pulse globally and are now starting to manufacture food ingredients from a number of those pulses. Have opened up some new plants which have expanded into 2^nd and possibly 3^rd shifts. He took some profits when it went over $25. Still a hold, but would be a Buy at $20-$24.

He likes the agricultural space. The difficulty is getting some stocks in it. He doesn’t own this, but it has been a good one. There is no reason not to like it. Has a good business model. Good management. He would try to be opportunistic and buy on pullbacks.

In a sector he likes. Chart is showing a symmetrical triangle in 2012/2013, which is bullish. It broke out from that and he think it works higher. There is no reason not to like it. It has acted fairly well, even though we have had a collapse in grain prices. Also, there is not a lot of inventory.

Had a fairly good run, but would still buy it. As they get more and more into ingredients, rather than just the pulses, it is certainly broadening their markets. Have a new line in North Dakota, and are talking about adding a 2^nd line to that production facility. Situated pretty well on a global basis between operations in North America and Turkey, etc. Trading at about 12.5X earnings, which is not terribly rich.

It is now beginning to participate in the growing demand. They are getting more and more into food ingredients. Has good upside potential.

Rather than getting into the food futures, he just wants to get into a play where he is benefiting from grain prices, grain activity, etc. This is a beneficiary of a long-term boom in food demand. Chart shows a long downtrend from 2011 followed by a new advance in early 2013. There is a growth channel and if the price gets down to the lower part of the growth channel, he would be a buyer. Yield of 3.23%.

(Market Call Minute.) Has been an awful performer over the years.

(A Top Pick October 22/12. Up 17.4%.) World leader in pulses, lentils, chickpeas, beans, etc., which are very much in demand globally. Feels they are in transition. They not only have the pulse market, which they are very well-established internationally in distributing, they are also now getting into the food ingredient business. Feels this is complementary to the pulse business and has tremendous potential for them.

Too much inventory and too much debt a while ago and the price collapsed. Still are problems and he is waiting to see what happens. Is still on his list of companies to watch.

(Market call minute.) There has been a good recovery so far and he can see more. Demand for pulses is increasing and there has been a much better market for lentil exports. Thinks we will see more of this company going forward.

A long-term believer in this company. Has been doing a little bit better of late. There are reports that lentil exports have been increasing quite a bit. Just about to commission their new pulse protein plant, so they are going to get more food additives within the pulse world. Well-positioned in Turkey. One of the major players in the pulse market which is a growing market. Over the last few years have had a number of problems hit them but thinks this is all behind them.