Saputo Inc. (SAP.TO)

Regarding the resolution of NAFTA today, Saputo is a fine, international company and saw resolution on the supply management issue. Saputo actually has cheese factories in the U.S., so it's always been a cross-border play. The US dairy farmers gained a little more exposure to the Canadian market, but not that much, which means the USMCA isn't too damaging to Saputo. He stresses that Saputo has a lot of international exposure, to offset this negative effect.

They had a soft quarter, the price environment for their products is weak. In addition, the supply managing negotiations in NAFTA are creating uncertainties for their business. An interview with Saputo’s president indicated that changing supply management rules would cause challenges for Saputo over the near term. However, Saputo is really good at expanding through acquisitions, they have a strong balance sheet and operations in several countries. Support for this stock will come as they expand within the new environment. The changes might also reduce their costs. She would not buy yet. She wants to wait to get a better sense of what will come out of NAFTA.

Has owned this for over 10 years. Subject to volatility due to the price of its raw material that they can't control. Dairy is a low-growth market. China's growth has been slower than hoped. He feels so-so about Saputo. Likes the management, but not the raw material. Food stocks never go out of fashion, so a good diversifyer in a portfolio, but it won't create fireworks for an investor.

They reported yesterday and had a weak quarter and they guided lower. There is a lot of competition in this market. They grow through acquisitions. She prefers company that grow organically. They are in a mature business. She thinks there are better opportunities elsewhere.

This is doing well for a consumer staples stock. The group has been performing badly, and Saputo is a nice house in a bad neighbourhood. Great company. But there are better sectors to buy.

A big international company now, and whether NAFTA comes or goes, doesn't make the slightest bit of difference anymore. For years and years, this has been bouncing right along one of his technical break points of about 4X BV, which is where it’s trading right now. It doesn't have a lot of upside potential, but the BV is growing not too badly. As long as it keeps on growing, you should be alright.

(Market Call Minute.) Has owned this in the past. There is a benefit and an offset to the kind of tax code and other stuff that has been going on. One of the Top 3 picks in tonight's show will be a better offering.

Hasn’t looked at this in a while. Prior to this year it has been doing very well. He has very little exposure to consumer staples. Would prefer being in more cyclical areas such as financials, consumer discretionaries or technology. Technically he doesn’t find the stock very exciting. Fundamentally, it’s trading at around 20X earnings with an 8% growth rate. Looks a little expensive.

They continue to be busy, both in New Zealand and Australia. Their whole purpose is to grow by acquisition. It ranks 150 in the overall database of 700 stocks, so is roughly in the top quarter. There are other stocks that rank more attractively. As part of a portfolio though, you will do okay with this. Just announced they plan to buy back up to 8 million shares.

A cheese/dairy processor. Just announced another acquisition in Australia. Good operators. The stock has done relatively well, but always trades at a premium valuation. It’s a consolidator, as there is not a lot of organic growth. Doesn’t see any compelling reason to own the industry. Other industries have more attractive growth rates. Dividend yield of 1.5%.