Clearwater Seafoods Inc. (CLR.TO)

The company is very consistent and very good. This is a staple, and is probably a very good idea.

Their product is in tight and shrinking supply, and demand is increasing. Asian demand has been picking up dramatically. There has been a cut back in certain quotas which hurt the supply side. It has been 2 years in a row where there has been a selloff in the winter and it has come back in the summer. This is a long-term hold.

It paused after a nice little run over the last year. Earnings growth was solid. Investors are concerned about the debt level. It is a high quality company. Don’t expect a lot in the short term.

Has very valuable harvesting seafood licenses, and very dependent on the US$. When the dollar is strong, they do well. Very capital intensive, as ships are expensive to buy and maintain. You really have to look at the free cash flow generation over a long period of time. The stock has been treading water for the last few years. Not something he would put in his portfolio.

Feels the volatility has to do with the trading and lack of liquidity. This name flies under the radar of a lot of institutions. It doesn’t trade a ton of stocks, and if an institution wants to get in or out, the stock tends to get moved around. The latest numbers were probably a little weaker than what the Street expected, but the sentiment was so negative before that. Longer-term, it is an interesting business. Seafood and protein demand, specifically for Asia, continue to increase. It is close to a monopoly in as far as the fishing licenses are concerned. This is one that you Buy when everyone hates it, and Sell when everyone loves it.

Chart shows a very healthy uptrend from 2013, which was broken in 2016. There should be strong support at around $9. He would wait for it to trade a little lower, and see if $9 is a credible support. If $9 holds, then it may be time to buy some, but we are way, way premature.

Has a small position. The last couple of quarters have not been very good, and the visibility for the next couple of quarters doesn’t look too good either. There are so many names to buy in the small-cap area, that he would prefer other places. Long-term, he likes this area.

Tremendously valuable assets that are difficult to replicate. They missed earnings last fall and analysts are skeptical that they can meet their guidance. They are an excellent company for the long term.

He is less concerned about seafood going across the border than other farm products. It is a very international business. People are eating more and more seafood products. This company is well positioned.

For the last couple of years, this stock has been pretty volatile, but fairly rhythmic in its movements. His chart shows support at around $8.50 with the stock liking to bounce off $14-$15. If you are looking at this stock, the ideal place to buy it is approaching. If it hits support, and it bounces, then it might not be a bad stock to buy. If you are a short-term trader, give it 3 days. A mid-term trader (i.e. 3 months to a year) he would give it 2 or 3 weeks.

(A Top Pick Feb 1/16. Down 11.37%.) He likes this medium and longer-term. It has a monopoly on licenses. It got hit when the federal government curtailed the number of scallops that could be sold. The stock is very volatile and will go up and down in big percentages.

(Market Call Minute.) A long-time favourite, but he is no longer in it. Fundamentally it broke down. The 1^st half is supposed to be their strongest, and it is not going to be.

High Liner (HLF-T) or Clearwater (CLR-T)? Both stocks have had about a 22%-25% haircut in the last 90 days. Both are free cash flow generators, 8.2% for this one and 6.1% for High Liner. This has $55 million of free cash, about 50% more in absolute dollars versus High Liner. Analysts are more optimistic on earnings estimates. The big difference in the coming year, is on the ROE, where it is forecasted to be 32% for this company. In comparison, this one appears to be better value with better growth prospects.

The stock looks good but volumes are stagnant. The stock has been a steady gainer. He would have no problems holding it.

Unfortunately, this had a bad quarter. They had the same problem this time last year, and the share price did rebound nicely. There is a scarcity value of consumer stocks, and should be a name that is of interest to people for the long-term. It holds a lot of quotas, and have a monopoly for certain type of shellfish in Canada. People are getting more and more conscious about the benefits of seafood and shellfish.