Topic: How To Invest

Hi Pat: Could I have your opinion on Premium Brands (PBH-TSX) an ex-trust. Thanks.

Article Excerpt

Premium Brands Holdings Corp., $16.89, symbol PBH on Toronto (Shares outstanding: 18.3 million; Market cap: $308.4 million; www.premiumbrandsholdings.com), took its current form on July 22, 2009, when it converted to a conventional corporation from an income trust. Before its conversion, it was called Premium Brands Income Fund. The company makes a wide variety of fresh and packaged foods. Its brands include Grimm’s (deli meats), McSweeney’s (meat snacks and pastries), Gloria’s (fresh sandwiches) and Duso’s (pasta). It sells these products, plus foods made by other companies, to over 26,000 retailers and restaurants in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Washington State. Premium Brands gets roughly half of its sales by selling its products through retailers. It gets the other half by selling food to restaurants, hotels and schools. Premium Brands continues to expand by purchasing other food companies. In October 2010, for example, it paid $42.5 million for SK Food Group Inc., which makes breakfast sandwiches and wraps at a plant in Reno,…