Premium Brands Holdings Corp (PBH.TO)

It missed on earnings so is in the penalty box. It supplies Costco which is a very good customer to have. Has a good management team and great future. It has built out its capex in past years so there iis more cash flow coming. Investors worry about beef prices and short term numbers. Owning the shares helps him diversify into another sector. Dividend yield is 4%. He is accumulating more shares.

It is at a low point but the story hasn't fundamentally changed. They have a lot of excess capacity and a lot of leverage. The market is now more short term focused so there has been a big over-reaction to the downside. You should be well rewarded for your patience but it will take some time. The CEO has been purchasing shares.

Long-term story very interesting. She wants to see a bit better execution. Last quarter disappointing, lowered 2026 outlook. Consumer demand weakened. Closing older facilities, walking away from unprofitable products. Management expects increased capacity expected to boost sales and profits, and she wants evidence of that.

Valuation more attractive. Debt remains elevated.

Acquisitive company. Biggest claim to fame was supplying sandwiches to SBUX. Tastes and fads change. We seem to be in a protein world right now, which is good for PBH. Doesn't like the balance sheet, highly leveraged. Can't control cost of inputs. (When it comes to serial acquirers, he prefers more-service-based companies.)

Not interested at the moment, but anything can change.

Serial acquirer. Hasn't invested in the past, due either to valuation or to higher interest rates impacting acquisition funding. Modest organic growth. If you already own it, probably OK. Better opportunities elsewhere in consumer staples.

Earnings weren't even that bad. 2027 growth is still intact. Lowered revenue and EBITDA guidance for 2026. Consumer staple that's done an extremely good job expanding capacity in US. Commodity prices up means margin compression. Inflection point in US growth has happened.

A no-brainer Buy today.

Continues to add. Growth plans and execution in US are going exceptionally well, so she can't understand the selloff. Beef prices have been high, which compresses margins.

It's all short-term noise. Focus on the long term.

Remains constructive. Spent a lot of $$ to build excess capacity in US, and now in process of filling it. That's been a challenge, with a number of missteps. He's been disappointed with the execution. Needs patience, but believes you'll be rewarded. Quite a bit of leverage.

Be cautious having this as your biggest position.

He averages down with PBH. They had a great deal to supply sandwiches to Starbucks and to supply US Costco with cured meats. The latter should result in steady increases. Management is great. The question is what happens with the economy and consumer preferences. 

Trades at 13x forward PE, but will grow 20% for the next year or two. Are selling $1 billion in non-core asset sales, which will improve their balance sheet. Recent pressure has come from rising prices, but are turning a corner here. Is a staple, so there is underlying demand. They are overcoming their margin issues.

Shares slid from $100 to $80 after a bad quarter. It wasn't that bad. Yes, beef prices are up, but they've invested $750 million to expand capacity in the US and are set to grow. Are selling foreign assets. They are doing everything right.

Trying to fill its excess capacity after years of investing in the US. Seems to stumble over and over in filling capacity. A bit exposed to economic cycle. Need to see better execution.

Accounting practices are a bit aggressive, he's not a fan.