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

SELL
If you own it sell it. He prefers Shoppers over this stock.
BUY
Probably not a bad buy here. Had severe problems with their US acquisition of Eckards. Now getting rid of them which is great as they can now get back to do what they do well.
DON'T BUY
Would prefer Shoppers (SC-T). Any Canadian business that goes into the US in a major way in retailing, he would stay clear of. No margin of safety.
SELL
Has come down along ways. Their US holding of Eckerd’s is still a nightmare.
DON'T BUY
Since they bought Eckerd's drug stores in the US, they have been disappointing again and again. Wait for it to turn before thinking about buying it.
DON'T BUY
Has been troubled but seems to have stabilized and looks like it is trying to dig itself out from the hole it created with its US acquisition. Good cash flow. Up against big competition in the US.
DON'T BUY
Made a mistake and bought this. Sold it and glad they are no longer in it. They bought the Atlantic assets of Eckard Drugs which was in worse shape than they thought.
DON'T BUY
Stock has come down a long way and everybody is looking for the turning point. Thinks they are starting to terms some of the Eckerd stores slowly around, but the problem is they still have a long ways to go.
DON'T BUY
Made a lot of acquisitions from J.C.Penney’s in the US hoping to turn them around. This left them with a weak balance sheet and not much cash to spend.
SELL
The company bought another company that wasn't as good as they thought. And the sons aren't up to the job of making things work. If they can get things going, it will be worth looking at but in the meantime it's time to move on.
DON'T BUY
This is a past pick. Retail is a sector he is avoiding. Stock is underperforming. Avoid.
TRADE
There are management changes in the US. This company had integration issues. The stock is cheap. Cautious, but depends on your outlook.
TRADE
The stock stays here for quite sometime until their problems are figured out. It has a positive differential, but they need that in order to stay flat.
DON'T BUY
The jury is still out on this as to what is happening on Eckards. He feels that acquisition was “ a bridge too far”. The debt it required really burdened the balance sheet. They have enormous interest costs.
DON'T BUY
Whenever you see a successful business stumble and have a significant decline in the stock price, be cautious. When they took over Eckards in the US, their debt increased dramatically. They have not yet demonstrated success in achieving good results with Eckards. Too much financial risk for him and too speculative.
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