LOBLAW COMPANIES LTD. $41 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 281.5 million; Market cap: $11.5 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.1%; TSI Network Rating: Above Average;www.loblaw.ca) has launched a new line of gluten free baked goods for people who can’t digest wheat.These products include breads, cakes and cookies.The company plans to launch more gluten-free foods over the next few months.
Only about 1% of the population has trouble digesting wheat, so consumer concerns about gluten levels could pass quickly. Even so, these products should help Loblaw attract more customers.
Loblaw is a buy.