High Liner Foods (HLF-T)

He would not double down on it because we are in tax loss season. There could be some tax loss selling in November/December. It has fairly high debt. It now pays a dividend but did not do so when he owned it. They are a leader in the field and know what they are doing. They could do well in time.

He held it for 10 years and did very well, but then he unloaded it entirely, starting in February. He didn't see a recovery in its last quarter and sold his remaining shares. Highliner made a distrastrous acqusition and suffered a brutal recall.
Doesn't see a recovery anytime soon.

Had a strong uptrend since 2016 and since then a series of lower lows and highs. Not great. It's now at the bottom of a lower trend.

Historically this company has not had a great return on capital. Returns from reinvestments have never really come.

He decided to keep the name because the yield is safe and good. It is a touch business. They are doing value added food processing on many types of fish. Margins have been squeezed. He thinks this might be coming to an end. The shrimp farm in Asia looks like it is fixed. The company has value at some point. It is the kind of name that private equity tends to gravitate to. He thinks it should be trading higher, but it is not a momentum name.

He used to own this around $3 and sold it at $10. They recently had some contamination from one of their suppliers. The long-term CEO has stepped down to be the Board Chair. He would consider this if it went back below $10. It is a leader in the field.

It hit a low in 2016 and it looks like that level is being tested (near $10). Near term the trend was down and longer term it is testing a old low. It is in a precarious position. It could bounce up or not. As a new buyer he would not buy it because you don’t know it will hold the $10 line. If you hold it then continue.