Premium Brands Holdings Corp (PBH.TO)

This is the distribution and specialty foods business, and is a combination of organic and acquisition growth. Their sandwich side continues to be their big organic growth side. Dividend yield of 2.28%. (Analysts’ price target is $70.36.)

Good business and very scalable. They buy assets in the US sandwich business and recently bought a meat business. Thinks the business has significant upside, but he is very worried about the valuation. He feels he could recycle capital into cheaper investments right now. If you own, you have to be ready to get out of this the minute they miss a quarter or that the thesis changes. Use trailing stops.

(A Top Pick June 24/16. Up 18.79%.) Still likes it. Strong management team. A premium foods distributor and marketer. Recently made a US acquisition for about $5 million, and they will continue to do this type of thing. The organic growth story will be in 2017, when they are building a sandwich facility.

He does not follow it that carefully. They are doing a good job of consolidating. It is quite expensive right now. But if you want to add to your position, wait for weakness.

Chart shows it had a nice run from the middle of last year, then consolidated, and is now breaking out which is a very bullish sign. This is probably good to go for a while.

Reported fairly good numbers today. Thinks this is the consistent performer, and deserves to be in a lot of portfolios. Expects you will see it creep up towards $60. There were some big expectations built into the story and they met those expectations. Typically, when you see that, you see a stock sell off.

(Market Call Minute) In the right place at the right time and the market appreciates it.

Vancouver-based with niche products, with not as much competition. Has gone up 74% in one year. Because of that, it is now expensively valued, and they will have to make acquisitions to grow to justify the multiple. Had owned the convertible debentures. You need a 10% decline before it would be attractive.

(Market Call Minute) He likes it.

A specialty food, manufacturer and distributor. Within Canada, consumer staples may have 15 companies that are investable. Most of them are large, mature, slow growth type of companies. Specialty foods means they can charge higher margins. You get the feeling management is not trying to build an empire and not growing for the sake of growth, but are making decisions that are in the shareholders’ best interests. Dividend yield of 2.88%.

(Top Pick Jun 30/15, Up 73.93%) They did a big acquisition. Sandwiches are popular in the US. They are run by the sandwich kings of BC, Canada. It is healthy’ish kinds of sandwiches made for outlets of all kinds. The company is doing brilliantly. He saw it as a special opportunity. He is going to continue holding them.

This management continues to deliver. Have done some phenomenal things as far as acquisitions go. The real driver in the last little while has been the ready-made sandwiches. They have a big sandwich assembly-line right now, and are trying to grow that out as fast as they can, because it is at close to full capacity. This is a big market right now in the quick service restaurant brand area. The stock is fully valued right now, and portfolio managers are looking to go other places and using this as a source of funds. You might see a bit of chop for the next little while. He still really likes this.

A very well run company. It has been very acquisitive. They effectively integrated their acquisitions. It is now at a multiple of 14 and there is a lot of good news built into it. There is no particular problem with the company, however.

(A Top Pick July 17/15. Up 66.73%.) He still thinks there is opportunity in the food business. This works more in the local convenience stores, etc., distributing sandwiches. They are getting more organic growth and are making their operations. (See Top Picks.)

Food processing and manufacturing facilities in North America. Has been growing through acquisition, but doesn’t think you are at risk of attracting Short sellers. This scores really well on Value for him. Has extremely strong price momentum, decent valuation, and a relatively low volatility stock. Dividend yield of 2.7%.