Blue Star Foods: This Delicious Seafood Smallcap Could Feed You Profits For A Lifetime

With the global population increasing rapidly and expected to reach the 9.8 billion mark by 2050, the macro backdrop for seafood companies has become increasingly robust. The expected increase in protein consumption is expected to contribute to high demand for marine protein which is known to be the most efficient source of animal protein. Existing seafood players are constantly on the lookout for new and sustainable technologies that are rapidly scalable in terms of seafood production in order to meet the rising demand. Our smallcap pick for the day is an ESG-focused seafood player with a unique and highly scalable approach to the production of fish and crab meat, which could become a behemoth in the years to come – Blue Star Foods Corp. (NASDAQ:BSFC).

Company Overview

Blue Star Foods is a fully integrated seafood company with a strong ESG (Environmental, Social, and Governance) focus. It is an integrated player that processes, packages, and sells high-value seafood across the globe to foodservice distributors, retail establishments, wholesalers, and seafood distributors in the United States, Canada, and Europe. The company imports, packages, and sells frozen pasteurized crab meat and other high-quality seafood products obtained primarily from Southeast Asia. The company also owns and operates North America’s oldest operating Recirculating Aquaculture System (RAS) full grow-out salmon farm. The company is headquartered in Miami, Florida.

Recirculatory Aquaculture Systems (RAS) Upside & The Taste of BC Aquafarms Acquisition 

Blue Star Foods Corporation believes that Recirculating Aquaculture Systems (RAS) is the future of its industry and a win-win situation for all stakeholders involved in a long-term sustainable seafood supply chain. In simple words, RAS is a land-based farming system that works by filtering water from the fish production areas so it can be reused again and again, thus reducing the overall amount of water and space required to intensively produce seafood products. In June 2020, the company recently acquired Taste of BC Aquafarms, Inc., a family-owned and operated RAS land-based salmon farming company.  The current Nanaimo facility produced 103% of the company’s goal of 100 tons of fish in 2020 and close to 98% of the output was well beyond market requirements in terms of texture, size, taste, and other quality indicators like ‘sushi grade’. With market demand continuing to outperform supply, the company intends to capitalize by increasing capacity and setting up more salmon farms using the current blueprint.

Taste of BC have been owned and operated by the Atkinson family who have been innovators in the RAS farming space for over a decade. They have built a proven and scalable model which can help Blue Star Foods to the next stage of growth and market share.  The company has plans to 21,000 metric tons of steel-head salmon product by 2028 after scaling their existing technology.  The implementation of a large-scale rollout for the salmon RAS model is expected to be a key growth driver for the company in the coming years.

Brand Recognition & Sales Growth

Blue Star Foods is historically known for its premium proprietary brands within the crab meat industry. The company sources its primary product, the blue swimming crab, from Southeast Asia. The product is processed on-site at local facilities, packaged, and sent to their market destinations in Europe and US. Blue Star Foods pays local fishermen who utilize their GPS-based proprietary technology system to trace product sources. The company also helps in capturing male crabs by mapping waters where more mature crabs can be harvested. Moreover, they catch crabs using collapsible traps instead of gill nets to prevent by-catch i.e., unwanted fish or other marine creatures.

Blue Star Foods holds several global patents on eco-fresh crab meat pouches. It is worth highlighting that they are the only company that sells crab meat in pouch form as it is cost-efficient and has a longer shelf life than traditional metal cans. These pouches also reduce CO2 emissions by 60% compared to cans. Its ESG focus was highlighted in the company’s first GRI Standard Sustainability Report published in January 2021 where all the globally recognized, quantifiable, and standardized ESG Key Performance Indicators demonstrated how Blue Star Foods deeply cares for the ocean waters where crabs are harvested.

Strategic Acquisitions

Blue Star has acquired 3 different companies, Coastal Pride (a seafood company that focuses on importing fresh and pasteurized crab meat primarily from Mexico and Latin America) and previously mentioned, Taste of BC (RAS Steelhead Salmon land-based farming). On December 14th, they announced the acquisition of assets Gault Seafood, LLC.  Gault is a Recirculatory Aquaculture Systems (RAS) company with unique technology focused on harvesting the Atlantic Blue Crab during its off-season. 

The Gault Seafood team has developed a special RAS technology that will allow Blue Star to modify the molting cycle of the Atlantic Blue Crab and therefore be able to harvest them in the off-season.  The existing crab season starts in March in Louisiana, and moves slightly northward every couple of weeks until you hit September in New Jersey.  Outside of this window, it’s almost impossible to get any of this product and bring it to the North American market.  The Company believes this technology we allow them to satisfy the consumer’s desire to enjoy the Atlantic Blue Crab all year long.

Final Thoughts

Source: Google Finance

Blue Star Foods has shown the typical volatility of a small-cap NASDAQ, but the fact remains that the company is heavily undervalued as compared to most of its seafood peers.  The company is currently trading at a trailing enterprise-value-to-revenue multiple of 5.8x and a forward multiple as low as 1.8x which is below the likes of Aquabounty, Atlantic Sapphire, as well as its Nordic peers such as Mowi and Cermaq. With its rapidly expanding capacity for producing salmon as well as crab meat, Blue Star Foods should be able to scale its revenues at an unprecedented rate which should unlock a significant amount of value. Overall, we are highly bullish about Blue Star Foods, and we believe that it is an excellent investment pick for our readers.


This website is a wholly owned subsidiary of Salesparq, LLC, herein referred to as Salesparq, LLC. Our publications are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. We may receive compensation for this article on a PPC basis as an affiliate. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.PLEASE NOTE WELL: Salesparq, LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.Release of Liability: Through use of this website viewing or using you agree to hold Salesparq, LLC, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Salesparq, LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and Salesparq, LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provided herein. Instead Salesparq, LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. Salesparq, LLC is compliant with the Can Spam Act of 2003. Salesparq, LLC does not offer such advice or analysis, and Salesparq, LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries and extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.In preparing this publication, Salesparq, LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. Salesparq, LLC has not been compensated for this article. The advertisements in this website are believed to be reliable, however, Salesparq, LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. Salesparq, LLC is not responsible for any claims made by the companies advertised herein, nor is Salesparq, LLC responsible for any other promotional firm, its program or its structure. Salesparq, LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA.
Show More

Related Articles

Back to top button