# High Liner Foods (HLF)



## SixesAndSevens (Dec 4, 2009)

I couldn't search much discussions on this stock.
what do others think about this stock?
it is near 52-week lows. in fact multi-year lows.
they did very well from 2012 - fall of 2016
they have brought back their previous CEO to turn things around.

their net income is growing and they have been hiking dividends almost every year going back many years.

buy or pass?
if buy is this a good entry point?


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## Eder (Feb 16, 2011)

Like Clearwater Foods or Premium Brands etc.... try their food they're selling. If you love it then decide. Personally I think their fish sticks taste like cat food so I'm out.


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## Dilbert (Nov 20, 2016)

The big question for me: Is Jargey actually Captain Highliner?:loyal:


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## SixesAndSevens (Dec 4, 2009)

hmm..so stock is cratering after earnings...glad I didn't buy.
also realized that the 2 clowns at Baskin fund have been pumping this up a lot...most of the social media buzz was created by David Baskin and the other bald dude I can't recall the name at this time.
they have been recommending this since when it was north of $25.


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## robfordlives (Sep 18, 2014)

I don't own this but wow another blow to Canadian business in general here. This company has spent millions developing this product line and made efforts to work with several Aboriginal groups on bidding for the contract with success. The government chooses a group with alleged ties to a Liberal minister that came out of nowhere. The governments news release even mentions 'reconciliation' in it. No wonder billions of capital is fleeing Canada as fast as it can.


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## SixesAndSevens (Dec 4, 2009)

robfordlives said:


> I don't own this but wow another blow to Canadian business in general here. This company has spent millions developing this product line and made efforts to work with several Aboriginal groups on bidding for the contract with success. The government chooses a group with alleged ties to a Liberal minister that came out of nowhere. The governments news release even mentions 'reconciliation' in it. No wonder billions of capital is fleeing Canada as fast as it can.


oh wow...I didn't even know there was a political angle to this drop.
specifically what contract are you talking about?
I couldn't find anything relevant in a google search.
have a link to the news?


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## gardner (Feb 13, 2014)

robfordlives said:


> governments news release


What news release are you talking about?


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## Eclectic12 (Oct 20, 2010)

SixesAndSevens said:


> robfordlives said:
> 
> 
> > I don't own this but wow another blow to Canadian business in general here ... The government chooses a group with alleged ties to a Liberal minister that came out of nowhere. The governments news release even mentions 'reconciliation' in it. No wonder billions of capital is fleeing Canada as fast as it can.
> ...


It will be interesting as I have yet to find anything either.

What I have found that seems more relevant is that their Q4 2017 results released yesterday seems filled with mixed signals such as net income increased while adjusted net income decreased and sales increased while gross profit decreased. Yahoo's numbers say the expectation was earnings of $0.25 with $0.15 being the actual - though this does not seem to line up with the release numbers.

One of press release footnotes refers to "certain corrections of errors identified in previously reported amounts" ... which may be fine but does not sound reassuring.


Interestingly, another footnote says:


> The Company now offers the ability for its common shareholders to receive dividend payments through electronic funds transfers.


which is the first I have heard of this choice from a company.


Cheers


*PS*
Maybe it is the the Artic Surf Clam license.
https://www.canada.ca/en/fisheries-...nsetobenefitfirstnationsinatlanticcanada.html

It seems Clearwater Seafoods CLR would the one main ones hurt as the 25% is reported as coming out of their quota.
https://globalnews.ca/news/3840144/...icence-in-lucrative-arctic-surf-clam-fishery/

Clearwater is reported as having a monopoly for decades.
http://business.financialpost.com/c...hery-ending-clearwaters-decades-long-monopoly


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## kelaa (Apr 5, 2016)

This seemed to have morphed into a Clearwater Seafood discussion, to which I'll add:

-Clearwater in recent years commissioned two new ships. That is part of the major investment they are talking about. Yes, it sucks then your business is reliant on the government selling you the license and then they change their mind.
-Given the government wanted First Nations involvement, Clearwater partnered with 13 Nova Scotia groups to be the operator and use FN crew/workers. It is unfortunate that this partnership did not win the license. If there was any corruption to the selection process as alluded to by robfordlives, I hope it is brought to light.
-The secular trend is toward more seafood consumption, particularly as the Asian countries become more wealthy. This is my main thesis for investment in Clearwater. Any product or reputation advantage Clearwater has would certainly be beneficial, but in my mind secondary. This is a setback for sure and has made it a bad trade for new shareholders, but I still believe its a good investment.


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## robfordlives (Sep 18, 2014)

My apologies I thought this thread was for Clearwater. I can't find anything online....my comment about perhaps some shady business was direct from the BNN host talking to one of their reporters and she mentioned this and that they were looking into it but thus far hadn't found anything to back those claims.


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## Eder (Feb 16, 2011)

gardner said:


> What news release are you talking about?


He's screwing up Highliner with Clearwater foods.


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## Eclectic12 (Oct 20, 2010)

kelaa said:


> This seemed to have morphed into a Clearwater Seafood discussion, to which I'll add: ...
> 
> -The secular trend is toward more seafood consumption, particularly as the Asian countries become more wealthy. This is my main thesis for investment in Clearwater. Any product or reputation advantage Clearwater has would certainly be beneficial, but in my mind secondary. This is a setback for sure and has made it a bad trade for new shareholders, but I still believe its a good investment.


Did you do a comparison between HLF and CLR?

Or is there an overlap in products with the exception of the Arctic Surf Clams where the now duopoly makes CLR a better choice?


Cheers


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## Eder (Feb 16, 2011)

HLF is a food processor CLR is a fishing company. 

I've met CLR management and talked to one of their captains aboard one of their new boats a few years ago. 

They are like a huge mom & pop operation, everyone working hard and loving the business. Their office in Lunenberg had many employees putting in extra hours on a Saturday. The ship I was on was high tech ,spotless & obviously cared for by a competent crew. They use sustainable fishing techniques using software programs modeling strategy to limit disturbing seabeds and minimize fuel costs etc.

I don't own their shares but I'm pretty sure long term they will be a good investment .


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## kelaa (Apr 5, 2016)

Eclectic12 said:


> Did you do a comparison between HLF and CLR?
> 
> Or is there an overlap in products with the exception of the Arctic Surf Clams where the now duopoly makes CLR a better choice?
> 
> ...


I haven't done any financial comparisons. But looking at the investor presentations, Clearwater appealed to me more. Previously Clearwater had the 100% of the arctic surf clam quota, so I don't think HLF would have had any product. Loosing 25% of the quota might make their clam operations less profitable due to lower volumes and might give them some price competition. 

CLR is more vertically integrated than just a fishing company. They have processing, distribution, and commercial food sales.


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## SixesAndSevens (Dec 4, 2009)

Eder said:


> HLF is a food processor CLR is a fishing company.
> 
> I've met CLR management and talked to one of their captains aboard one of their new boats a few years ago.
> 
> ...


That is very good insight...thank you Eder.
CLR stock is down -50% in 1 yr period....maybe a good entry point.


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## kelaa (Apr 5, 2016)

Clearwater just reported Q4/Annual results. 0.25 of earnings per share for the year, yikes. Looks like $4 is about right based on trailing P/E. And it looks like 2018 will be a pretty mute year as well. Hopefully they can direct their improved cash flow towards paying down debt. Check in again in 2018 Q4?


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## kelaa (Apr 5, 2016)

HLF turned in not a so good quarterly report and is down a bit. Oh, I thought, if its a secular trend not good for Clearwater either. So check in on Clearwater, and they turn in an fair Q3. And what was news to me is that in August the DFO reversed the previous the arctic surf clam decision and restored the quota to Clearwater for 2018 and 2019. The DFO aims to start the quota process over again in spring 2019 for the 2020 season. I'm surprised Clearwater didn't issue a news release back in August on this material news. I remember hearing something about an ethics violation of the DFO minister relating to family members and financial interests, but didn't note the reversal. 

But on the debt repayment front, it doesn't seem there has been any progress yet. It's carrying some pretty onerous loans, some at 7.2%!


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