Clearwater Seafoods Inc. (CLR.TO)

Recently did a financing, and he participated. They have done a good job in increasing their EBITDA. Have grown by acquisition as well as organically, and expects them to grow quite a bit over the next few years. There is quite a bit of debt on the balance sheet, and he normally doesn’t like to own companies with a lot of debt, but they have been able to muddle through that and have been able to grow. Really likes the story.

When our cod fisheries collapsed we got into shell fish. Now other countries are introducing quotas. CLR already has its quotas in place. He likes the story. It needs something to push it above $15.

(Market Call Minute.) A very capital intensive business, but have some very valuable fishing licenses. They’ve done a good job so far.

(Market Call Minute.)

(A Top Pick June 17/15. Up 15.14%.) Have finally made an acquisition, McDuff in the UK. This gives them a whole lot of new species and new markets to sell into. There is a huge barrier to competition because of quotas. The 2^nd half of the year is their strongest half, so he is looking forward to the 2^nd half.

(A Top Pick May 29/15. Up 8.45%.) On a fundamental basis there is less supply. Having quotas in many instances they have a monopoly on certain types of shellfish. That is becoming more and more valuable. At the same time demand is increasing, both within Canada, NA and globally. Thinks future prospects are good.

The stock looks great. He would have to see it get up and through the $16 area in order to be a Buy. If you are holding this, he would continue to Hold, or possibly reduce your position.

The real play is the appetite of the world for protein, particularly seafood. They are not only harvesting efficiently, but marketing all over the world, particularly in Asia. Dividend yield of 1.39%.

This has a tendency to move higher in the summer, like most food stocks. We are in a period of seasonal strength right now. Technically, the stock has been trading in a range, and after close to a year it has finally broken above its trading range. It has the potential of an upside to the $16 level. This is a good investment right now.

Very high end frozen seafood. The trend is trying to eat healthy - wild, caught seafood. Fast freezing technology has been fantastic. They just made a European acquisition.

Income positions actually do well in the summer time. This one’s chart is actually positive. If it breaks below the trend line you want to look to exit.

(A Top Pick June 17/15. Up 2.61%.) There is a bit of an overhang on the stock right now. Seems to be a theory that they are going to raise some capital, which management has repeatedly said they are not going to. Hopes they do. Beat their 5-year plan 1 year ahead of schedule.

(A Top Pick June 17/15. Down 11.34%.) Still really likes the name. Made their largest acquisition last year. Seafood prices have gone up while the Cdn$ has gone down. All these things are tailwinds, yet the stock is trading lower than it was in June. They have a very large barrier to entry, which deserves a much higher multiple than what they are currently carrying. Still a Buy.

There is a scarcity in Canada of consumer stocks, and as a consequence this gets on institutional managers’ radar screens. Likes the dynamics of the industry. On many species they have 100% monopoly in Canada, but there is clearly a declining supply. Ability to deliver is critical, but at the same time there has also been increasing demand. Likes that there is diminishing supply and increasing demand, so in the long-term he sees the price going up. Made a major acquisition out of Scotland, which he thinks is going to give a kick to earnings in 2016. In the latter part of 2015, they brought in a fishing boat that is going to increase productivity.

It already has so many quotas that have been put in place. They just acquired a Scottish player that is distributing to Europeans. The low Canadian dollar benefits them.