I think the only downside is the taste of Capilano. This might sound offensive however I was a long term holder and for years wondered why czz couldn't increase margins.
If anyone tries the specialty honeys which are priced about two dollars per bottle more than czz the answer becomes crystal clear.
Capilano is a commodity honey producer and there is very little in their corporate plan to change this.
Even if they do expand into China the niche players will take all the value.
I would like to be proven incorrect but management shows no interest in doing so.
In the medium term I think czz will bounce between 14 to 18 until the market or management realises they are stuck in a market segment with no pricing power
CZZ Price at posting:
$15.96 Sentiment: Sell Disclosure: Not Held