Jean Coutu Group (PJC) (A) (PJC.A.TO)

There is consolidation in this industry. The family would have to want to sell in the case of being acquired. Likes the pharma industry, which is more attractive than grocery. The chart is not that attractive so she would wait for it to pull back a little bit.

Recently did a big dividend distribution. Looks like a decent play. Valuation looks a little bit stretched. If you want a play in this space, he would look at Loblaw’s (L-T) or Empire (EMP.A-T), which is very interesting if you look a year out from now.

Growth by acquisition type of name, but we are into a zone of resistance. Will struggle in this range. No huge upside. Above $17 you could hold it.

(Market call minute.) A lots of speculation around this in terms of whether Metro (MRU-T) is going to buy it. Trades at a rich multiple but is executing quite well and generating a ton of free cash flow. Very, very safe dividend.

Recently made an offer to buy back shares at $18.50 and if you own, he would be tempted to take it. Also paying a special dividend. He would expect that after the dividend and the buy back the stock will trade a little bit lower. There is a lot of competition coming, especially in the front end of the store. A little expensive right now but could be very interesting a few dollars down.

It is richly valued because of the Shoppers’ takeover. Would wait for the stock price to fall back.

One of the few companies who have invested in the drug store space. Was going to move his money from Shoppers. But if you are buying it for them to be taken out then you could be waiting a long time. A great space and there is room to grow the dividend.

The longer-term trend is with you. The stock periodically does a little bit of consolidation. Chart shows higher highs and higher lows, which is a healthy profile. Right now it is in a consolidation phase and if it got to the trend line at about $17, it would be a buying opportunity. Great-looking chart.

Potential take out candidate. It would be Metro, most likely. A very well run company. With shippers taken out it will be the only guy left. The take out premium has already been priced in. He would wait. Doesn’t like the risk / reward ratio. It would make a lot of sense if PJC took out someone else.

What is interesting about this is that they sold Rite Ade recently so they have about $500 million in cash. Then you have the Loblaw’s (L-T) and Sobeys’s, Safeway. Metro is saying they could do something maybe. He thinks it is possible that Metro can buy this company. He would not want to buy something just for that though. This one is on his watch list for $17.50.

Believes it is an overcrowded trade. Don’t buy at the top of the growth channel. The trend is still up, but he would not be too excited about it.

This one had a big jump on the news of the Shoppers takeover. Not sure how much more upside there is on this. Getting to the point where he is going to have to start thinking about selling. They still own a lot of shares in Rite Aid (RAD-N).

(A Top Pick June 18/12. Up 11.67%.) An okay company but he couldn’t see anything for them to acquire so he sold his holdings.

(Top Pick May 14/12, Up 17.90%) Took profits and moved on to Weston’s. He is interested again but the volume has to be there. Well run business.

(A Top Pick May 7/12. Up 6.2%.) He thought there would be more action in terms of expansion. Have put up decent earnings but there really hasn’t been a big story. Has not been adding to his position.