Loblaw
Toronto symbol L, is Canada's largest grocery store operator, with over 1,000 stores.
Loblaw continues to restructure its business. That includes upgrading its inventory-management and computer systems, and streamlining its distribution networks. Higher profits should be in store as it finishes paying for the restructuring, and operates more efficiently.
LOBLAW COMPANIES $39.72 (Toronto symbol L; Shares o/s: 278.4 million; Market cap: $11.1 billion; TSINetwork Rating: Above Average; Dividend yield: 2.1%; www.loblaw.ca) is Canada’s largest …read more »
The Canadian retailing industry is intensely competitive. That’s why we prefer to focus on well-established retailers, such as the five we analyze below. Their high market shares and strong brands give them an edge. As well, all five trade at reasonable multiples to earnings. However, not all are buys right now.
LOBLAW COMPANIES LTD. $41 (Toronto symbol L; Conservative Growth Portfolio, …read more »
LOBLAW COS. $41.14 (Toronto symbol L; Shares outstanding: 278.4 million; Market cap: $11.5 billion; TSINetwork Rating: Above Average; Dividend yield 2.0%; www.loblaw.com) reports 11.6% higher earnings per share in the three months ended October 9, 2010, to $0.77 from $0.69.
The company continues to upgrade its inventory-management systems and streamline its distribution networks. Costs related to these improvements lowered its earnings …read more »
TRANSCANADA CORP. $37.42 (Toronto symbol TRP; Shares outstanding: 693 million; Market cap: $25.9 billion; SI Rating: Above Average; Dividend yield: 4.3%; www.transcanada.com) agreed to build a natural-gas-fired electrical-power plant in Oakville, Ontario, in 2008. It also signed a 20-year deal to sell this plant’s electricity to Ontario’s power regulators.
However, the Ontario government now feels that the plant is no …read more »
In the latest issue of The Successful Investor, we’ve updated our buy/sell/hold advice on grocery retailer Metro Inc. (symbol MRU.A on Toronto).
Metro: An aggressive pick that matured into a stock more suitable for conservative investing
Metro is a good example of a stock that has graduated from Stock Pickers Digest, our newsletter for aggressive investors, to The Successful Investor, which focuses …read more »
METRO INC. $45 (Toronto symbol MRU.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 105.8 million; Market cap: $4.8 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.5%; SI Rating: Average) operates roughly 660 grocery stores in Quebec and Ontario. Its major banners include Metro, Metro Plus, Super C and Food Basics. As well, Metro operates 267 drug stores, including 81 inside its …read more »
THOMSON REUTERS INC. $38 continues to see weak demand from its clients in the finance sector. But sales of information products to other professionals, such as lawyers and doctors, continue to rise. Still, the company’s overall revenue fell 1.8% in the three months ended June 30, 2010, to $3.2 billion from $3.3 billion a year earlier (all amounts except share …read more »
GEORGE WESTON LTD. $83.48 (Toronto symbol WN; Shares outstanding: 129.1 million; Market cap: $10.8 billion; SI Rating: Above Average; Dividend yield: 1.7%) owns Weston Foods, which makes fresh and frozen baked goods. As well, it has a 62% interest in Loblaw Companies.
Weston is buying U.S.-based Keystone Bakeries for $185 million U.S. Keystone is made up of Freed’s Bakery, a leading …read more »
LOBLAW COS. $43.69 (Toronto symbol L; Shares outstanding: 278.4 million; Market cap: $12.2 billion; SI Rating: Above Average; Dividend yield 1.9%) is testing a new “minipharmacy” for its smaller supermarkets. The new pharmacies will occupy just 400 square feet. The first test will be at a No Frills store in Ontario.
Right now, Loblaw has in-store pharmacies in about half of …read more »
LOBLAW COMPANIES LTD. $43 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 277.3 million; Market cap: $11.9 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.0%; SI Rating: Above Average) is testing a new “minipharmacy” for its smaller supermarkets. Right now, it has in-store pharmacies in about half of its 1,000 stores.
The company feels in-store pharmacies help it compete with …read more »
