HSP Capital's Harris Perlman unpacks vegetable canner, Seneca Foods $SENEA

Oct 6, 2023

Harris Perlman, Principal at HSP Capital, discusses Seneca Foods Corp, its background, and their thesis on the company. They explore the asset value and LIFO accounting, debunking the perception of canned vegetables as a terrible business. The podcast also covers the canned vegetables industry, including a competitive analysis and recent financial performance. They address downsides such as insider control and governance, debt, and the private label trend. Additionally, they discuss investing in capital expenditures, the expansion of Del Monte capacity, and Harris' predictions for the company's future.

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Episode notes

Introduction

00:00 • 2min

Exploring Seneca Foods: The Largest Vegetable Canner in the Country

02:01 • 2min

Investment angles and the use of life though for tax accounting

03:34 • 10min

Discussing Book Value, Valuation, and Business Quality

13:24 • 2min

Analyzing the Business of Vegetable Canning

15:53 • 20min

Concerns about Control and Ownership Structure

36:10 • 15min

Investment Research Solutions, Bottling Business, and Lamb Weston

51:29 • 3min

Analyzing the Financials and Valuation of a Vegetable Canning Company

54:05 • 9min

Harris Perlman, Principal at HSP Capital, joins the podcast to discuss his thesis on Seneca Foods Corporation (NASDAQ: SENEA), one of North America’s leading providers of packaged fruits and vegetables, with facilities located throughout the United States. (Note Harris' audio is not the greatest on this, but we did our best to adjust where we could.)

Harris' write-up: https://drive.google.com/file/d/1wAm1w3eEZCHCfY-e1Lzu0gvyGW7uN4KL/view

Chapters:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:46] Overview of Seneca Foods $SENEA and why its interesting

[6:22] Asset value / LIFO accounting

[14:24] Why $SENEA isn't the ultra-commodity terrible business most people associate with canned vegetables?

[22:36] Canned vegetables industry

[24:46] $SENEA corporate history and background

[31:38] What happened with $SENEA from 2021-2023, specifically with inflation

[36:16] $SENEA understanding downside risks, specifically regarding insider control, governance, debt

[44:12] Investing in capital expenditures - expand Del Monte capacity

[46:48] How Harris thinks $SENEA thesis will play out

[48:41] Private label trend

[53:37] $SENEA competitive analysis

[57:09] Recent $SENEA financial performance

[1:00:40] Final thoughts on $SENEA

Today's episode is sponsored by: Alphasense

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