Premium Brands Holdings Corp (PBH.TO)

This has had a great run, and people are tempted to Sell it, but he likes to ride the winners. However, an analyst downgraded this solely on valuation, and valuation is a concern. There are a lot of people waiting to buy this on a pullback. He thinks they will continue to execute, and as a result will be rewarded with a higher premium multiple relative to its peers.

They provide food products to institutions and are expanding. It is a pure growth story. Last quarter revenue grew 30%. 25 times earnings, however. They made solid acquisitions. Two facilities are coming online over the next 18 months and margins are going to increase. (Analysts’ target: $81.50).

Food processing. A great company and have done a great job over the last 2-3 years. It has taken them quite some time. It has tried to do the same in the past, but it just wasn’t working. Finally they put things together. Management has done a tremendous job to optimize the company to really squeeze out the expenses and to push further profitability through cash flow generation. Valuation is probably ahead of itself. Wait for a correction to get it at a cheaper price.

A well-run company. They trade at a discount to their peer group. Have done a great job of growing EBITDA. This is a name he would stick with.

A company he really likes. The growth is driven mostly by acquisitions. There is lots of room in the industry. They still have room to grow.

This has been a very good stock for the last number of years. Not cheap. The recent volatility has nothing to do with the company, but more to do with the sector. People have been selling what have been deemed as “safe stocks”, and this would fall into that category. These companies could come down as money rotates into other areas of the market.

This has always traded at a higher valuation, so he wouldn’t be afraid of it. When it is looking expensive, they have the ability to go out and pick up some company that they can roll in and generate some synergies, and help drive value for the company. Expanding some of their distributions with the purchase of Belmont Meats. They grow their dividend over the long-term. Management has executed very well with a knack for integrating their acquisitions.

This is the distribution and specialty foods business, and is a combination of organic and acquisition growth. Their sandwich side continues to be their big organic growth side. Dividend yield of 2.28%. (Analysts’ price target is $70.36.)

Good business and very scalable. They buy assets in the US sandwich business and recently bought a meat business. Thinks the business has significant upside, but he is very worried about the valuation. He feels he could recycle capital into cheaper investments right now. If you own, you have to be ready to get out of this the minute they miss a quarter or that the thesis changes. Use trailing stops.

(A Top Pick June 24/16. Up 18.79%.) Still likes it. Strong management team. A premium foods distributor and marketer. Recently made a US acquisition for about $5 million, and they will continue to do this type of thing. The organic growth story will be in 2017, when they are building a sandwich facility.

He does not follow it that carefully. They are doing a good job of consolidating. It is quite expensive right now. But if you want to add to your position, wait for weakness.

Chart shows it had a nice run from the middle of last year, then consolidated, and is now breaking out which is a very bullish sign. This is probably good to go for a while.

Reported fairly good numbers today. Thinks this is the consistent performer, and deserves to be in a lot of portfolios. Expects you will see it creep up towards $60. There were some big expectations built into the story and they met those expectations. Typically, when you see that, you see a stock sell off.

(Market Call Minute) In the right place at the right time and the market appreciates it.

Vancouver-based with niche products, with not as much competition. Has gone up 74% in one year. Because of that, it is now expensively valued, and they will have to make acquisitions to grow to justify the multiple. Had owned the convertible debentures. You need a 10% decline before it would be attractive.