
TSE:HLF
Clearwater Seafoods (CLR-T) or High Liner Foods (HLF-T)? Both have done quite well. Feels the trend is your friend on these stocks. Revenues are climbing and the margins are strong. Hard to buy a stock that has gone up like these but they are going to go higher. If you don’t own, wait for an opportunity to buy.
Fish food processing. Seems to have found the magic formula for acquisitions using debt. Debt is about 3X equity. Did a very big acquisition in Iceland with a hostile bid for a privately held company. This gives them a big part of the East Coast US. Won’t have top line growth but are putting on cash flows like you wouldn’t believe. Very good managers.
(A Top Pick Aug 11/11. Up 28.54%.) Pays a dividend of $.40 a share. Have made a terrific acquisition by getting assets from Icelandic Group giving them an entrée into the US, retail, grocery and food service. Took on a lot of debt but are already paying it down. Trading at 8X earnings so is still very cheap
A defensive, staples play, probably something you should not pursue. Struggling to get above 20 and 50 day moving averages, underperforming markets. Stay away from it. Look for it to improve in the summer time – a good place to hide then. He wants to see relative strength improve and break above 20 and 50 day moving averages.