Weston is a buy once more

Article Excerpt

George Weston shares have risen from a low of $41.83 last July. That’s mainly because of improved performance at 62%-held Loblaw, Canada’s largest grocery-store operator. Weston has also sold off some of its other assets. It now has lots of cash — and lots of options for using it to the benefit of its shareholders. GEORGE WESTON LTD. $63.25 (Toronto symbol WN; Shares outstanding: 129.1 million; Market cap: $8.2 billion; SI Rating: Above Average) operates in two distinct divisions: Weston Foods, which includes 31 fresh and frozen bakery plants in Canada, and seven plants in the U.S. producing frozen-baked goods, as well as biscuits, cookies, ice-cream cones and wafers; and a 62% interest in Loblaw Companies, Canada’s largest grocery-store operator and a leading seller of general merchandise, drugs and financial services. Late last year, Weston sold its Neilson Dairy subsidiary to Saputo Inc. for $467 million. Earlier this year, the company sold its U.S. fresh bread and baked goods business for $2.5…