Clearwater Seafoods Inc. (CLR.TO)

From a fundamental basis, he has seen this space come off a little, and it has come back to a long-term trend line. Right here, this probably offers a very good risk/reward.

He likes this quite a bit. It has been a victim of tax loss selling. They missed the last quarter, and said the next quarter is also going to be soft. They instituted a new clam boat, and it was so efficient that they actually pressured their own pricing, and margins came down. They are also stimulating demand and gaining customers, because of the lower prices. That price pressure is going to last only one more quarter. Heading into Q2 and the back half of next year, he is quite bullish on this. The company has the greatest quota for clams and mussels in Canada.

The last couple of quarters have not been good for the company. He does not think they will come out with stellar quarters. $10 might be a floor on the stock. He would continue to hold it but there are head winds in the short term.

A lot of people look at these types of stocks as bond proxies, and question why they are down so much. Good quality companies that pay dividends. With the market moving so well, people are rushing off and purchasing everything else. There is support at around $9, so this could go down a little further. It is a good company with good strong dividends.

(A Top Pick Nov 9/15. Up 10.54%.) A very well-run business. It has a dominant position in seafood harvesting on the East Coast. Owns a lot of licenses which are not easy to come by. Has been putting a lot of capital into building out new vessels as well as technology on current vessels. Made a large British acquisition about a year ago.

(A Top Pick Nov 13/15. Up 16.14%.) Shellfish is their business, and he still likes this very much. They already have their market share established through their quotas, which should restrict supply. Also, prices are on the rise.

Chart shows that it has been in a range from about $13.40 with a top that is narrowing a little. If the stock can break out through the top, that would be quite positive. The food business space has been pretty supportive over the last couple of years.

This is a brilliant company. They have ordered a new $40 million clam boat. More than anything, this is a play on Asia needing protein. This company holds almost all of the licenses to extract. Dividend yield of 1.44%.

(A Top Pick July 26/16. Down 3.8%.) He continues to like this. The trend is towards healthier eating, and seafood is one of the healthier items. Very high-end packaging.

This has done tremendously well. Last year was the year to own this one, and this year is the year to own High Liner (HLF-T). He thinks a lot of Canadian food companies are undervalued.

The 3-year chart shows it has been in an uptrend with lots of corrections along the way, which is normal. Generally speaking, this is a good, longer-term picture, and he wouldn’t hesitate to recommend it.

(A Top Pick July 29/15. Up 29.71%.) A great large moat business where they have quotas for shellfish all over the world. New quotas are not being produced, they are actually being taken away, which is causing them to have much higher barriers to entry and putting upward pressure on seafood pricing.

(Market Call Minute.) He likes this. A really well run business. A dominant player in the fisheries business in eastern Canada.

(A Top Pick May 9/16. Up 5.22%.) Chart shows a very nice short term base formation in 2015-2016. The price is “hanging around the highs”, so it is going higher. Made a good acquisition in Europe. They sell 35% to Asia and 35% to Europe. Freezing technology is fantastic now.

Supply just can’t keep up with demand for seafood, which is why it is selling around 35% of its product to Asia and another 35% to Europe. A well diversified customer base. It recently acquired a company in Scotland, a very strong accretive acquisition. Dividend yield of 1.4%.