Fish On! Hooked on Highliner

20 Responses

  1. I’m on the fence about this one. Everyone has to eat, High Liner has a very loyal following in Canada (and growing in the USA and elsewhere) and it’s at annual lows. However, I have two causes for concern; 1. product supplies 2. recalls.

    1. I’d like to buy and hold my dividend stocks (we’re currently in the process of living off our passive income) and like you said, I’m not sure how long their supplies will last. Most of their products are from wild fish so not as sustainable as farmed (perhaps? I don’t know the fishing industry). Personally, I prefer farmed because I believe it’s more sustainable but maybe HLF’s customer base prefers their fish “wild”.

    2. Most food companies have recalls, that’s not the issue, however, when they do, the costs can be significant. High Liner underestimated the latest one by about $9 million. I don’t know what their margins are but that could be significant. And, the recall didn’t have anything to do with the quality of the fish rather a “contamination” with milk products. With all the allergies out there, I’m a bit worried about the food production industries (I own a lot of food distribution).

    Would you care to share the feedback that Cris shared with you that made up your mind for you?

    Thanks for sharing your thoughts.

    Besos Sarah.

    • Hey Sarah. Here is what cris said. I own HLF a nd I am thinking to add more… they had some recalls in the spring and the previous CEO (who run the company for 15 years) is back… I am confident that everything will get back to normal. Cris seems really knowledgeable but again its great to do your own research. Like you said this isnt a buy and hold for 20 years but i feel a great value buy. Congrats on almost living off the passive income!

  2. John R says:

    PCI, there’s not stopping you, well done.

  3. Pellrider says:

    I saw Cris’s comment on the previous post. I never heard of this company before. You see, I don’t like fish. But, I was looking to see what the company is doing.
    It is nice that you were able to buy it.

  4. PCI –

    Love buying a stock you use, no doubt. Currently typing this comment while flying Delta (DAL), an airline stock I purchased a bit ago and guess what – the experience I am receiving now is quite enjoyable. Congrats on the big purchase, that reinvestment should be very nice!


  5. Jay says:

    Thanks for sharing your new position! That’s a very impressive yield and I think I’ll need to take a closer look myself.

    Also agree with you that it’s great to buy dividend stocks for things you use. I love the feeling when you buy a product that you’re just fuelling your future dividends!
    Jay recently posted…Free Trend Following Trade Ideas for September 2017 (Part 4):My Profile

  6. Cris says:

    Just a few more insights about the HLF…
    I own the company for a while and last week I added 100 more shares at 13.69.
    This year the company had to deal with some recalls which cut the profit (in 2nd quarter) and the shares lost around 30% in value.
    Overall the health of the company is good and the dividend is sustainable but here are a few more things which make me to believe that the shares are at the bottom and from here will continue to increase:
    -in the last 3-4 years the bottom was around $13 and at this level is a resistance for the stock
    -The RSI is up, over 30 after hitting 13 in the last couple weeks
    -the volume was high in the last 2 weeks so, this predict that the bottom was hit…
    -they appointed back the previous CO, who mostly created the existing company

    -all the ratios are half if you compare with the industry (p/e, p/B, p/s)…
    -my own valuation gives a value of $18-$19 per share…

    Nobody can predict the market but increasing the odds in your favor can be the key.

  7. Hola, Came across a few Canadian stocks which might be of interest to you.

    Pembina Pipeline Corp (TSE:PPL)
    Gluskin Sheff + Associates Inc (TSE:GS)
    dividendgeek recently posted…6 Stocks that increased dividend (week 38)My Profile

  8. Leo T. Ly says:

    I have known the High liner brand for years now. I used to buy their frozen salmon fillets all the time because their salmon were wild caught.

    When I buy dividend paying stocks, on of my most important criteria is the continuous dividend payment history. The second is the number of consecutive dividend increases. Other financial numbers can be fudged and manipulated here and there, but the dividend is hard to fake. Good buy.
    Leo T. Ly recently posted…12 Personal Financial Questions That Everyone Should KnowMy Profile

  9. Your post extremely cool. I glad to be here. I enjoyed reading your articles and i would like to bookmark your posts.

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