Time to Take Profits in FPI

Article Excerpt

FPI LTD. $18 (Toronto symbol FPL; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 13.5 million; Market cap: $243.0 million; SI Rating: Speculative) plans to sell its remaining assets in two transactions. Ocean Choice International will buy FPI’s fish harvesting and processing operations in Atlantic Canada for $158.5 million. High Liner Foods Inc. will pay $143 million in cash and High Liner common and preferred stock for FPI’s North American marketing division. The sales require the approval of shareholders at a special meeting on October 22, 2007. The Newfoundland government must also approve the sales. Following these transactions, FPI’s remaining assets will consist of cash and the High Liner securities. The company plans to change its name to FP Resources Ltd., and aims to maintain its listing on the Toronto Exchange. We liked FPI as an undervalued fish processor. But now that the company plans to convert into an investment and holding company, we think you should sell. sell…

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