Updates on Safety-Conscious Stocks

Article Excerpt

LOBLAW COMPANIES $46.27 (Toronto symbol L; SI Rating: Above average) is Canada’s largest food seller, with about 1,700 stores under the Loblaws, Fortinos, No Frills, Provigo and Zehrs banners. It also distributes groceries to other stores. George Weston Ltd. owns 63% of Loblaw’s shares. Loblaw’s sales rose 3.5% in the three months ended December 30, 2006, to $6.78 billion from $6.55 billion. Earnings per share fell sharply, to $0.16 from $0.73. However, if you disregard one-time items, per-share profits fell 38.3%, to $0.58 from $0.94. For the full year 2006, sales rose 3.7%, to $28.6 billion from $27.6 billion in 2005. The company lost $0.80 a share, compared to a profit of $2.75. Excluding one-time reorganization and restructuring charges, per share earnings fell 18.8%, to $2.72 from $3.35. Loblaw will likely earn $2.74 a share this year. The stock now trades at 16.9 times those earnings. The company has made a number of management changes, including a new executive chairman and president. Loblaw…