maple leaf foods
Toronto symbol MFI, is Canada’s largest food processing company. Its products include fresh and prepared meats and poultry, mostly under the Maple Leaf and Schneider brands. It also makes fresh and frozen bakery products through 89.8%-owned Canada Bread Co. Ltd.
MAPLE LEAF FOODS INC. $16 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 140.1 million; Market cap: $2.2 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.0%; TSINetwork Rating: Average; www.mapleleaf.ca) is Canada’s largest food processing company. It mainly sells its products, including fresh and prepared meats and poultry, under the Maple Leaf and Schneider brands.
The company recently said it plans to sell its 90.0% stake in Canada Bread (see right), Canada’s second-largest producer of baked goods after Weston Bakery.
Canada Bread supplies a third of Maple Leaf’s sales. Maple Leaf’s $1.6-billion stake in this business is equal to 73% of its $2.2-billion market cap.
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The company recently said it plans to sell its 90.0% stake in Canada Bread (see right), Canada’s second-largest producer of baked goods after Weston Bakery.
Canada Bread supplies a third of Maple Leaf’s sales. Maple Leaf’s $1.6-billion stake in this business is equal to 73% of its $2.2-billion market cap.
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Holding companies give you an easy way to buy a variety of businesses at a discount. As well, their structure makes it easy for them to unlock hidden value by selling undervalued subsidiaries.
For example, Maple Leaf Foods has risen sharply since it said it would sell Canada Bread....
For example, Maple Leaf Foods has risen sharply since it said it would sell Canada Bread....
PLEASE NOTE: This is our last Hotline for 2013. Our next Hotline will go out on Friday, January 3, 2014. ENBRIDGE INC., $45.35, Toronto symbol ENB, has won regulatory approval for its Northern Gateway pipeline. Northern Gateway will pump crude from Alberta’s oil sands to Kitimat, B.C. From there, tankers would ship the oil to customers in Asia....
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.
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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.
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MAPLE LEAF FOODS INC., $15.98, Toronto symbol MFI, rose 20% this week after the company announced that it plans to sell all of part of its 90.0% stake in Canada Bread (see below). Canada Bread is Canada’s second-largest producer of fresh and frozen baked goods, after Weston Bakery. It also makes pastas and sauces. Canada Bread supplies around a third of Maple Leaf’s sales. Maple Leaf’s stake in this business—currently worth $1.6 billion—is equal to 73% of Maple Leaf’s $2.2-billion market cap. The company would use the proceeds to fund a major restructuring of its meat-processing operations. This includes building new plants and eliminating unprofitable products. It’s also installing a new computer system that will give its managers more timely information. In addition, the cash would help Maple Leaf pay down its long-term debt of $1.3 billion....
CANADIAN IMPERIAL BANK OF COMMERCE $82 (Toronto symbol CM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 400.0 million; Market cap: $32.8 billion; Price-to-sales ratio: 1.9; Dividend yield: 4.7%; TSINetwork Rating: Above Average; www.cibc.com) has launched Aventura, a new credit card loyalty plan for travellers....
MAPLE LEAF FOODS INC. (Toronto symbol MFI; www.mapleleaf.ca) is Canada’s largest food processing company. It mainly sells its products, which include fresh and prepared meats and poultry, under the Maple Leaf and Schneider brands. Though 90.0%-owned Canada Bread the company also makes fresh and frozen bread, pastries and pasta....
MAPLE LEAF FOODS INC. $14 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 140.0 million; Market cap: $2.0 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.1%; TSINetwork Rating: Average; www.mapleleaf.ca) is Canada’s largest food processing company. It mainly sells its products, which include fresh and prepared meats and poultry, under the Maple Leaf and Schneider brands. Though 90.0%-owned Canada Bread (see right), the company also makes fresh and frozen bread, pastries and pasta.
Maple Leaf continues to make progress on a major restructuring plan that includes building new plants and eliminating unprofitable products. As part of this strategy, Maple Leaf recently sold its Ontario turkey farms for a combined $48.2 million under two separate deals. The company is also installing a new computer system that will give its managers more timely information.
In the three months ended June 30, 2013, Maple Leaf earned $9,000, or a loss of $0.02 a share. A year earlier, it earned $26.0 million, or $0.16 a share. If you exclude unusual items, such as severance costs and writedowns, earnings per share fell 91.3%, to $0.02 from $0.23.
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Maple Leaf continues to make progress on a major restructuring plan that includes building new plants and eliminating unprofitable products. As part of this strategy, Maple Leaf recently sold its Ontario turkey farms for a combined $48.2 million under two separate deals. The company is also installing a new computer system that will give its managers more timely information.
In the three months ended June 30, 2013, Maple Leaf earned $9,000, or a loss of $0.02 a share. A year earlier, it earned $26.0 million, or $0.16 a share. If you exclude unusual items, such as severance costs and writedowns, earnings per share fell 91.3%, to $0.02 from $0.23.
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MAPLE LEAF FOODS INC., $14.44, Toronto symbol MFI, rose 8% on Friday after it agreed to sell its Rothsay rendering operations to Texas-based Darling International Inc. (New York symbol DAR). Rothsay recycles by-products from Maple Leaf’s main meat-processing operations into a variety of ingredients for other products, including animal feed, soaps, lotions, cosmetics, fertilizers and plastics. Rothsay also makes biodiesel fuels. Maple Leaf will receive $645 million when the deal closes, probably by the end of 2013. That’s equal to 32% of its $2.0-billion market cap (or the value of all of its outstanding shares)....