Clearwater Seafoods Inc. (CLR.TO)

(A Top Pick Feb 2/15. Down 18.84%.) Has just acquired a company in Scotland, the largest supplier of shellfish, etc. in Europe. Stock has been trashed because of the bear market. It pretty well possesses all of the big permits/quotas that are available for the east coast. They are also located in Argentina. He is looking to add a bit to this.

Likes the story. This past quarter was very good and the next couple of quarters are going to be fairly strong also. Had a few weak quarters last year because of weather issues with all the storms out east. Expects they are going to raise some money at some point, and he would participate in an equity issue. Wait for a better entry point. They should benefit from a lower Cdn$.

A well managed company with valuable fish harvesting licenses. It is capital intensive. They are making some acquisitions. They are a beneficiary of a high US dollar. He finds it pricey. As long as they manage the company well you can hold.

(A Top Pick Dec 30/14. Up 11.94%.) One of the largest providers of seafood in North America. Likes their long-term fundamentals. There is a decreasing supply and an increasing demand which is very good for pricing.

One of the world leaders in the distribution of shellfish. They already have their quotas, the ability to acquire shellfish, and there is a huge shift in taste for higher protein. A lot of companies are limiting supplies and reducing or introducing quotas, and there will be upward pressure on prices. Acquired a European company, which has been accretive to their earnings. Dividend yield of 1.67%.

It came down from its highs. It is an excellent business and they are dominant. They just made a large acquisition of a shell fish company. They have quotas that are hard to come by. They are well capitalized.

It will have a strong second half and next year. They are getting a great boost to their business. Because of quotas on shell fish and an expanding middle class, they benefit from the increasing price.

There is a huge demand for seafood. Operationally these guys have not done that well the last couple of quarters. He sold.

This is harvesting seafood out of the ocean. The intake for a protein has been going up, especially in Asia where there is a big demand for their product. The company’s numbers tend to be fairly lumpy, because there are a lot of factors that aren’t necessarily predictable recurring revenues. The recent pullback is probably a function of their most recent numbers as well as the market sentiment.

Currently trading at a pretty low valuation based on 1^st quarter earnings, which were quite poor, and 2^nd quarter earnings which are not expected to be great. This is a seasonal business where the 2^nd half is usually much stronger. Raised a bunch of money recently at about $12.25. They have been talking a big game about making acquisitions and looking at assets. This is the sort of business where you if you can buy some quotas and consolidate the industry a little, there are a lot of synergies that can happen. Dividend yield of 1.42%.

He likes this and has been a past top pick. It is an attractive name long term. They have 100 % quotas for some shellfish. Had a bad quarter which was weather related. So that is a risk. Upside should be better with the new large boat recently acquired. Q3 and Q4 should improve.

Raised $55 million, and he believes $15 million was through the insiders. Have said that they want to make some deals, and he has been waiting for a while. Thinks they are getting close. Seafood pricing is growing, the Cdn$ is low and fuel prices are down. There is a quota on fishing, so they have a great control over the seafood market. If they can buy more quotas, there will be a huge amount of synergies. Dividend yield of 1.3%.

Production costs are relatively fixed so as production goes up they benefit. HLF-T have to buy product on the market, but they don’t have to invest in equipment and licenses so have underperformed this one.

The largest owner of shellfish quotas in North America. Likes the long-term dynamics of the business. Seafood is scarce and getting scarcer, so as a consequence you are seeing a very robust pricing across all their seafood products. On top of that quotas are becoming more valuable over time. Also, there is increasing demand as people become a lot more conscious of the benefits of seafood and proteins, particularly in Asia, but more so lately in North America. A nice defensive name that is relatively uncorrelated with what is going on in the rest of the economy. Dividend yield of 1.25%.

A great investment. There is a scarcity in Canada of consumer names that are available to investors. Has had a nice run, but he sees further upside, largely because of the supply/demand fundamentals. There is a decreasing amount of shellfish, and they have a virtual monopoly on some of the species of shellfish. At the same time, on the demand side, you see people more conscious of the fish proteins and the need for them. Great long-term fundamental story. Has also benefited from the rising US$.