Don LatoMaple Leaf FoodsMFI.TOCOMMENTOct 30, 2019

Is defensive. Is a turnaround story with margin improvement. Good. But it has come off along with all staples. MFI pays a 2.5% dividend, which is not bad in this market. MFI is fine overall.

Has been a turnaround story in recent years. It is a staple, but not recession proof. Is a higher-end brand some products, so can be risky in leaner times. MFI is doing the right thing and pays a good, sable 3%  dividend. Prefers Premium Brands, but nothing wrong with MFI.

It's really just a case of unfortunate entry timing. Spun out Canada Packers, and MFI shareholders received some shares of that. Looking more attractive at current prices, as the spinout eliminates a lot of the commodity risk. Heavy investment cycle is behind it, so now should see higher cashflow, higher returns, more share buybacks, and potentially higher dividends.

Hold, and you might even consider adding at this level.

The sell-off in October and November was overdone. He's really interested in it. He has to study its fundamentals more, though.

#1 would probably be Telus. BCE is also in there. Names like AC, MFI, PRL, GSY, WFG, and TFII. All of these stocks are cheaper than they ought to be. All things being equal, those names should be higher in January than they are now.

Very volatile for a consumer staples company. Paying 15x forward PE for earnings growth of 6-7%. Missed in consumer packaged products recently. Sideways for last 5 years. Rising input costs cause margin compression.

It is up 15% in the last month. Has a steady underlying business. Inflation has increased costs but it is catching up now and can increase sales prices and maintain costs. There is potential in the spin-off. Although he doesn't own it, it is moving up in their ranking system.

Good picture. Something appears to have changed. May be testing old highs from 2022 and breaking out. If the breakout holds (and some breakouts don't), then probably going a lot higher. 

It is the leading protein company in Canada. It is spinning out the bacon division which should increase the profit margins. Chicken sales are picking up. Free cash flow per share is up over 100%. Its free cash flow/capital is 8 times greater than the typical TSX stock. Its P/E for 2025 is 17.
Buy 6  Hold 1  Sell 0

She's anticipating economic weakness, hesitant even on the consumer staples space. Consumers in Canada have seen a lot of price increases in the last 24 months; spending same $$, but taking home less. Questions ability to continue to pass on those price increases.