Premium Brands Holdings Corp

It has dropped lately, but a good opportunity now for long-term investors. Top managers. There's concern over the input prices of some products but will be addressed over time. Long term looks good, so PBH should be accumulated on weakness. PBH is good with identifying on consumer trends. They grow at 6% annually and organically.

It really started moving in 2015 as a number of investments they had made started to pay off. In the last couple of years they have made large investment that they expect to pay off from here and going forward. He would consider it to take an initial position or buy on a pull back.

This will do great things, if you have a 3-5 year horizon. Well-run, but they're dogged by some input costs, but that's nothing new in the food business. He's added to his position on a recent dip and was surprised by their rebound. PBH has the backing of CPPIB with some of them on their board now, so their cash position is great now. He expects more deals and diversification.

Under pressure from a lot of stuff. They are not doing anything that is not duplicable by other people. They have scale and brands. Retailers want to build their own brands.

(A Top Pick Jun 07/19, Down 4%) You don't want to be in this right now because the trend is not there. You were getting a good deal on this one. The recent downtrend was based on China trade wars so it was temporary.

Impressive story. Hit last quarter with commodity nature of the food business. He bought on the selloff. Buy high quality names like this with reasonable valuation, organic and inorganic growth, respected CEO. Be cautious about the volatility, and look for steady operating performance.

She watches it. It's underperformed, because they cut guidance a few times. They have issues with input costs (flu has decimated the pork population in China and driven up pork prices), and those costs impact margins. They make a lot of sandwiches to Starbucks, but can't raise prices because of end-consumer resistance. PBH grows by M&A, but M&A may slow because of a wobbly balance sheet, which further impacts their growth.

They warned on a disappointing earnings outlook for this year. The swine fever in China has disrupted the market for some of their products. It is a temporary issue. A temporary problem is a buying opportunity.

(A Top Pick Oct 09/18, Up 10%) He sold and bought back in. Problem was they weren't integrating businesses well, but they're back on track with a capital infusion to let them do more deals. The lows are behind them.

2015-8 saw an uptrend, but it's now on a dowtrend. This year, support is at $90, the buying level, your entry point.

They have done a really good job of acquiring, but bit off a little more than they could chew. Later the CPP investment board came in and purchased 7% of the shares of the company. Now they have a lot of cash again. He thinks they are now going to ramp up growth. (Analysts’ price target is $95.36)

Since early spring 2018, it's fallen from $120 to current resistance around $80. It's had a 33% increase in EBITDA. EPS is down a bit from acquisitions, but estimates for 2020 are 48% higher. The CPP Investment Board just bought a big stake. (Analysts’ price target is $90.73)

He likes this well managed company. They typically acquire companies at good valuations and expand the margins. They say the acquisition pipeline still has great opportunities. They just completed a $200 million bought deal. Some of their margins have tightened, which has impacted their share price recently.

They have big contracts with star bucks. They made a number of acquisitions but these stories may fall apart and they had a premium valuation and then the stock fell apart when the company missed a couple of quarters. They had problems with the minimum wage going up. He is trying to do more due diligence on it.