Recent Purchase

    High Liner Foods Incorporated (HLF) is a Canadian company that is involved in the processing and marketing of prepared and packaged frozen seafood. Some of the company's retail branded products are sold in Canada, United States and Mexico. These brands of products consist of names such as High Liner, Fisher Boy, Mirabel,  and Sea Cuisine.  High Liner Foods offers its products to restaurants, institutions, food retailers and food service distributors under Icelandic Seafood  and FPI brands. The Canadian business includes 100 individual products sold under the brand High Liner.

 Information about Financials

    High Liner Foods Inc Revenue grew from $260.4 million in 2005 to $1.002 billion in 2015. This represents a CAGR = 14.43% over 10 years.

     HLF had earnings per share (EPS) has grown from an -3.93 in 2005 to $0.96 EPS in 2015.  The 2015 of EPS is after a 2:1 stock split on May 30, 2014.

   The Interest Coverage Ratio is ratio that is used to determine how easily a company is able to pay its debt. The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense over the same period.  HLF had an  interest expense in 2015  $16,102,000 and  EBIT of $36,310,000.  Therefore the interest coverage ratio is 2.25.  With an interest coverage ratio below 2.5, the company should not take on more debt and try to increase its earnings or pay down its debt some.

   HLF paid a dividend of $0.465 per share in 2005. The stock had a 2:1 stock split on May 30, 2014. Therefore on a split adjusted basis, HLF paid a dividend of  $0.2325. In 2016, HLF will pay an annual dividend of $0.56.  This represents a CAGR of 8.32% over 11 years.

Summary

    As people are encouraged to add more seafood in their diets for a variety of reasons such as Omega 3 fatty acids, along with increase in population, the demand for their product should continue. Although people would prefer fresh fish, it is not always convenient as we live busy lives.

    On Nov 23, I purchased 50 shares of HLF at $19.99 per share for a total cost $1004.62 including commissions.  Currently, HLF pays an annual dividend of $0.56 per share. The yield on cost of these shares is  2.79%.  This purchase of 50 shares increases my annual dividend income by $28.00.  

    HLF is set to pay a dividend on December 15 and the record date is December 1. The ex-dividend date is therefore November 28. As my shares were purchased prior to the ex-dividend date, I will receive the dividend on December 15.


    I will update my investment tab spread sheet in early December with purchase.

Disclosure : Long HLF

DISCLAIMER

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.

Pathway to Retirement

     All individuals and couples all have one thing in common when it comes to retirement. We all have to have enough money to live off as people will be unable to work most jobs past a certain age. 

     This income in retirement can come from a pension, capital gains, interest, or cash flow. Some people think their only way to retirement is too win the lottery.  These lottery players think investing in stock market is gambling or that you need a lot of money to invest in the market. 

      I know of a lot of people play various lotteries every week.  These lotteries include scratch tickets, even splits, and the major lottery games. In Canada, one of the lottery games is 6-49.  The odds of winning are 1 in 14.3 million (1 / (49C6).  For those not familiar with math, 49C6 represents "49 Combination 6".  This game consists of 49 numbers in which 6 balls are randomly chosen by a machine. A bonus number is also drawn. If the number on these 6 balls are the same as the 6 numbers picked by the lottery player winner, then he or she wins the jackpot.  The lottery player can also win other ways, but the money will be a lot less.  The scratch tickets winning amounts are a lot less.  So if you add the amount of money paid to play various lottery games, it can add up. Personally, I think a person is better off playing bingo instead of playing these lottery games. If the bingo game has 400 players, then your chance of winning is 1 in 400.

       The pension can come in various forms. They can be small government pension for old age, a small government pension or a defined benefit pension.  The defined benefit pension is not an option for most people, as usually only government or crown corporation employees have this setup. Defined benefit pension a liability for the employer for as long as the pension receiver is alive.  So most companies have down away with them, and made the worker responsible for his or her own retirement by using a registered contributions plan.

      The downside of a contributions plan to a worker, is the money put in is not guaranteed to be there when you go to take it out.  These plans are called RRSP (Canada), 401k (US), super annotation (Australia) etc. are capital gain types of setups.  So as the value of these plans go up or down, corresponds to the same change in an investor's net worth at that given time. So an investor will have to withdraw money out of this account therefore reducing the balance.

   An individual could invest in investments that pay them either every month, quarter, semi-annual or annual. This pay is called cash flow. So the investment is paying a cash flow in the form of a dividend, interest, premium, distribution, or rent.  The goal of this is to have enough income coming in from your investments to exceed your expenses, which means the investor will be financially free.  Even if the investor is not financial free, the income from the investments will help cushion the blow in cash of a lay off at a job.

    Which is best?  The two best options are pensions and/or cash flow investments in my opinion.  In Canada, an individual can invest in non-registered accounts  or tax-free savings accounts.  These individuals can invest in other cash flow investments such as real estate or oil and gas.

     Most people in Canada have heard about Derek Foster.  Derek Foster let the rat race at age 34 by investing in dividend paying stocks, income trusts and REITS.  Derek used leverage of few times to aid is investing.  To find out more about Derek, feel free to check out his website www.stopworking.ca.

    In summary, an individual who thinking the best chance of retirement is, for lack of better word, is gambling with their life. The odds of winning is so high that an individual should only play the lottery once and awhile for entertainment purposes.

DISCLAIMER

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.

     

Option Expiration Day - Nov 18

   I recently sold a covered call involving 3 contracts of IAMGOLD (Ticker Symbol IMG) with a strike price of $6.00 and option expiration day of Nov 18, 2016, which you can read about here.  The option has expired and was not assigned. As the seller of the option, I get to keep the premium I received.

   I also sold puts options involving 3 contracts of IMG with a strike price of $5.00 and option expiration day of Nov 18, 2016.  You can read about this transaction here.  I currently owned 300 shares of IMG, so by selling puts I was collecting premium while waiting to buy at my price target.  This option was assigned at the stock price for IMG was trading slightly below $5.00 at expiration. 
My brokerage charges an option assignment fee of $24.95.  So I now own a total of 600 shares.

   IMG does not pay a dividend, so I will be looking to sell all these shares either a direct sell or a covered call in the near future.

Disclosure:  Currently own 600 shares of IMG.

DISCLAIMER

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.