There are three compelling reasons to consider investing in the Fish/Livestock Industry at this juncture:
1. The looming world food shortage will take time to correct. Economic development will spur additional demands for quality food such as fish and livestock.
2. Viral outbreaks, chemical contaminants, pathogenic microbes, and heavy metal pollutants make food safety a vital issue. Consumers need fish and livestock sources that do not threaten wellness.
3. The Fish/Livestock Industry is an oligopoly with less than 10 companies listed on U.S. stock exchanges. There is plenty of room for new entrants, while entrenched players enjoy the fruits of very limited competition.
HQS has a low market capitalization (less than $200 million), double-digit stock price growth over the past twelve months, and a hungry clientele. The company is incorporated in Seattle, WA, but operates in China. It uses this populous and resource-rich nation as a base to feed the world. The company supplies aquatic food to North America and Europe, as well as to Asian countries. It has tremendous competitive strength in terms of quality assurance as it conforms to Aquaculture Certification Counsel, Inc. standards.
Sales have grown by more than 40% over the last four quarters. Earnings per Share have more than doubled during this period. The Gross Margin is around 46%. The stock is strongly positioned to generate cash and grow in the foreseeable future.
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