Rona Inc (RON.TO)

Thinks the business is challenged by the big box stores. Would wait on the sidelines until they sort things out.

Caller asked about possibility of a take-out. He is not an M&A guy. If the housing sector is slowing, it means a lot of people are renovating and that is a catalyst for the stock.

Retail is a tough, tough business. He’d be very careful of this sector. Looking at the chart, he would think this one is going to be dead money.

(A Top Pick March 22/12. Up 53.44%.) Sold his holdings.

Environment on the stock has changed. You have strong competition and it’s a tougher market. The takeover offer was basically shut down so he doesn’t think this is a possibility. Limited growth.

(A Top Pick Dec 14/11. Up 15.15%.) Very disappointed in the management and in particular the Board of Directors. Feels they are not acting in the best interests of the shareholders. Lowes (LOW-N) made a proposal last summer and the board would not take that to the shareholders.

Lowes could come back. Directors have not acted on the shareholders behalf. He needs more shareholder –friendly people as directors.

Very poorly run company and the short-term Québec politics has allowed poor management to hide. Will be reporting next week and there won’t be anything special. Thinks that before the next annual meeting, there will probably be a proxy fight.

If you own, you are going to have to be patient. It was disappointing somewhat that they rebuffed Lowes (LOW-N) advance. Haven’t executed well on a variety of strategies. Doesn’t see the sector having a lot of wind at its back going forward. The housing boom is moderating.

Quebec election didn't settle much. He hopes the Lowe’s takeover will not be affected. The stock has not gone down. He is disappointed that the board has not worked more to get the most from the deal for shareholders and Canadian employees.

(A Top Pick Aug 4/11. Up 4.2%.) 5.25% Series 6, Class A. Company was getting into trouble so he sold his holdings.

Hopes that Lowes (LOW-N) is successful in its acquisition and he feels they will be. Rona from a fundamental perspective has never been a favourite. Have had deteriorating fundamentals.

Hang on to it but he would not buy it if you don’t own it. If your stock goes above the offer, then take profits. There is a long history of interference in Quebec.

Declined Lowes (LOW-N) offer of a takeover. Lowes already has a decent international expansion program, principally in Australia. If you own, he would Sell.

His mind boggles at how this company can think they will grow their way out of this situation. We've had the best housing boom in Canada that we have seen in a generation and they have not grown their earnings. The bid for this company from Lowes (LOW-N) is at book value and buying here is probably not a bad idea.