Saputo Inc. (SAP.TO)

It corrected recently. Even with the correction, it looks expensive. There is a slowdown in China in the purchase of dairy.

Has been very, very disappointed in this company. It was on his radar screen for the income side of his portfolio. A very staple cheese/milk business. Reasonable GDP type growth. Their international business just fell off a cliff on cheese pricing in this last quarter. Not very cheap at 20X earnings, so be a little bit cautious.

Short. It is expensive. This is ultimately a low growth market. They are a good management team, but facing headwinds in Canada and the US. It looks like it will roll back. He has shorted for at least a year and will stick with the short.

Looks expensive, but if you look at all the other major international food companies, you will see that they are all up around that price earnings range. Food companies tend to have very high price earnings multiples simply because everybody knows you’ve got to eat. Companies like this, which has a really significant presence and market share; you know they are going to be around.

He is Short this and has been for some time. Looks very expensive at around 20X earnings. They suffer from volatility of the cheese commodity price moving around. If interest rates go up, their acquisition strategy is going to be very, very difficult to execute.

This has definitely grown nicely over time. Made an acquisition in Australia last year. He worries about things like the transpacific partnership actually moving forward and Canada de-regulating the dairy industry, where the profitability of this company would drop dramatically. Production in other parts of the world is substantially cheaper. If you can get it at lower levels this is very interesting.

It is probably a tepid buy. It is consensus long. But it has had a very nice run and is a good consolidator. It is probably a long term buy. It is a defensive holding and it is a fine place to hang out. But he is optimistic and so why would you want to hang out here?

Great company and has always created value for its investors. Balance sheet strength is very good. Ability to grow revenues is pretty strong. A company in food processing, that shows a 20% increase in revenue, is always going to be a good company. For a 2-3 year time horizon, this is a very good name to own. The only headwinds it could face is the spread between input costs and processing costs.

Has been a great company and has done very, very well. It just falls outside of the range of where he would tell people to Buy. It is growing. Trading at around 24X earnings, too expensive for him. If you want an alternative consumer name, he would look at Michael Kors (KORS-N) which has been out-of-favour in the US for a while. Used to trade at 40X earnings, but is now trading at 15X earnings and growing at 25%. Thinks they have a lot of growth ahead of them.

On a seasonal basis this usually does well from around May to October. Technically this has been in an upward trend and is currently testing its all-time high. The stock is outperforming the market and is above its 20 day moving average. If you get a move above its previous high that will probably cause a bit of a pop in the stock. If you own, continue to hold or buy some more on weakness.

One of the companies that has done very well by not being resource exposed as well as doing well in its own right. There are questions about cheese price sustainability in the US and milk supply in Australia, however.

This has done very well. Just had a stock split and announced a dividend increase. It is a consolidator within a mature industry. They can’t buy anymore in Canada so have made a few acquisitions in the US. However, North America is almost becoming too small for them. They bought an asset in Australia. Feels it is fully valued here.

Has been really solid. He is waiting for the factors to line up. It is hard to say if the valuation times earnings will hold up for the long haul.

Based through 2013 and then broke out. Corrections are healthy and there is nothing wrong. It is a correction within a reasonably good trend. It is well above the previous low.

Low dividend yielder, but have grown the dividend over time, which is nice. Well-managed. They have a model that is built on acquisitions. They are good at acquiring and execution.