MAPLE LEAF FOODS INC. $13 - Toronto symbol MFI

MAPLE LEAF FOODS INC. $13

(Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 140.0 million; Market cap: $1.8 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.2%; TSINetwork Rating: Average; www.mapleleaf.ca) has received regulatory approval for its plan to sell its Rothsay rendering operations.

Rothsay recycles by-products from Maple Leaf’s main meatprocessing operations into a variety of ingredients for other products, including animal feed, soaps, lotions, cosmetics, fertilizers and plastics. Rothsay also makes biodiesel fuels.

The company will receive $645 million when the deal closes on October 28, 2013. It will use the cash to pay down its $1.3 billion of long-term debt.

Maple Leaf Foods is a buy.


A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.