Topic: How To Invest

Pat: I would like to know what your current opinion is on Premium Brand Holdings Corp. as an investment. Thanks.

Article Excerpt

Premium Brands Holdings Corp., $18.35, symbol PBH on Toronto (Shares outstanding: 21.3 million; Market cap: $390.9 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 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 22,000 retailers and restaurants in B.C., Alberta, Saskatchewan, Manitoba, Ontario and Washington State. The company gets roughly 62% of its sales by selling its products through retailers. It gets the other 38% by selling food to restaurants, hotels and schools. Premium Brands continues to expand by purchasing other food companies. For example, in March 2013, it paid $55.0 million for Langley, B.C.-based Freybe Gourmet Foods, which makes premium deli meats and other foods. This…