
TSE:MFI
A stock that people have loved to hate for a long time because the protein business has not performed well. He is getting increasingly more excited about this one. Have been making all the right strategic moves by selling some non-core businesses. Announced the sale of their bread business, which will fetch top dollar. Feels analysts are underestimating how much that business will go for. Protein business is going through a huge restructuring. This will create cost savings and an increase in EBITDA. $18-$20 is his 12 month target.
Took a sharp jump on the basis that they are looking at selling off their Canada Bread assets. Usually when a big event happens you get a big jump for about 3 days. Right now, this potential has been baked into the price. They may decide not to which would create a pull back. Not sure there is a lot of potential on a going forward basis.
In the process of selling Canada Bread (CBY-T), a major holding of theirs and Canada Bread is paying a special dividend to Maple Leaf. Had a good run so wouldn’t get into it at this time but feels there is minimal downside from here.