Thursday, September 21, 2017

Recent Purchase

      As investor, our goal is invest in companies that are undervalued. Similarly, we prefer to buy things such as groceries, clothes, vehicles etc. when they are on sale.  But investors often struggle to pull the trigger when a stock he or she has been following falls in value.  This might be due the fear of being wrong  and possibly the stock falling even more in price.

    High Liner Foods (ticker symbol HLF.TO) trades on the Toronto Stock Exchange.  HLF.TO is a market leader in the frozen fish market.  Their products are available in grocery stores and restaurants in both Canada and the United States.  High Liner Foods is a supplier of fish products to McDonald's Restaurants.

    I initiated a position in HLF.TO when the stock was trading near $20 per share.   After this purchase the stock fell in value.  I then added to my position, which you can about here.  

     The stock has come under pressure due to a major recall.  Products were recalled due to a milk allergen that was not listed on the label. This recall involved products that were sold in Canada only. Nonetheless, this recall cost approximately $9 million dollars and will affect the earnings going forward.  Obviously, this will have a large negative effect on earnings.

     The last couple of days, including today, the stock hit a new 52 week low.  This provided a yield of over 4%, which is larger than the stock's own 5 year average.  Today, I decided to act and add to my position.  Warren Buffet says, "We tend by be greedy when others are fearful, and be fearful when others are greedy.


    On Sept 21, my limit order of 100 shares at $13.45 was filled.  The fill price was exactly $13.45.  This was a 52 week low until shortly after the stock fell to $13.37 before rebounding.

       This purchase adds $56.00 to my annual dividend income based of the annual dividend rate of $0.56 per share.  I now own 200 shares of HLF.TO.

      I believe the recall is mostly factored into the current price of the stock. I believe the stock will stay below $15.00 for the remainder of the calendar year.

Disclosure: Long HLF.TO

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.


  1. Interesting buy here. I remember you mentioning this one a while ago never really pay to much attention until now. Valuation is very low and attractive at this Price. Will look more into it. Thanks!

  2. IP

    Congrats on the purchase and move making. Solid metrics it appears. Huge fan of yield over five year average as a great metric. Talk soon!


  3. I wish I knew more about international dividend growth stocks. Guess that is the nature of living in the US

    1. Evan,

      Living in the States is like winning the ovarian lottery. There is a lot more companies to choose from.

      In Canada, we do not have stocks like KO, PEP, JNJ, CL, PG etc.