SAPUTO INC. $49 - Toronto symbol SAP

SAPUTO INC. $49 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 197.0 million; Market cap: $9.7 billion; Priceto- sales ratio: 1.4; Dividend yield: 1.7%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese. It also makes snack cakes and tarts. The company operates in the U.S., Argentina and Europe.

Saputo will repurchase up to 1.2 million of its shares from a private seller at a discount to the market price. It aims to complete this purchase in December 2012.

This move is part of Saputo’s plan to buy back up to 9.85 million of its common shares, or roughly 5% of the total outstanding, by November 14, 2013. Buybacks raise earnings per share and other per-share calculations, and give the remaining shareholders a larger stake in the company.

Saputo is a hold.

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