Stockchase Opinions

David BaskinSobeysSBY.TOBUYJul 08, 2003

Well run. Prefers Metro. Good price. Solid company. Half the multiple of Loblaws. Some growth.
$35.32

Stock price when the opinion was issued

food stores
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

BUY
The cheapest of the bunch. Not a bad defensive investment.
DON'T BUY
By the parent company, instead. Empire Corp. Has better assets, and a better mix of stuff.
DON'T BUY
Prefers the management teams on Loblaws (L-T) and Metro (MRU.A-T) because of their history of better execution. Some day, this will be a wonderful turnaround but, the question is when.
DON'T BUY
Doesn't like the whole sector. This company missed out on the A & P acquisition. The big risk is the headline worry of Wal-Mart coming in.
BUY
Sobeys has reported earnings which are in-line. They are positive. They have had a trying time as Walmart comes in with its big box stores. Hold if you own, but don't buy right now.
WEAK BUY
Prefers Loblaws (L-T) and the reach they have. Likes the way they have gone head to head with Wal-Mart (WMT-N). There isn't a better managed company in the food sector. Also prefers George Weston (WN-T).
HOLD
Speculation that this and Metro (MRU.SV.A-T) might be involved with the purchase of A&P Canada.
BUY
Generally likes the grocery area. Thinks they will do fine. Currently having a little bit of difficulty with their margins being squeezed. Sales have gone up.
WEAK BUY
Model price is about $38. Doesn't qualify for their current portfolio.
DON'T BUY
Food market in eastern Canada is extremely competitive. For them to grow, they have to do it on a long term basis and doesn't think it will give much return.
DON'T BUY
Its problem is that they have Loblaws as a competitor. Has a habit of blowing up every once in a while. Would prefer Loblaws which has higher valuations, buy pays off.
WEAK BUY
In the broad context of the market, this is a nice place to hide. Won't be as volatile as many other sectors. Would rather own Loblaws or Metro, especially Loblaws.
DON'T BUY
Not interested in owning either Sobeys or Loblaws. Not a fan of the retailing food industry.
DON'T BUY
Grocery business is a tough industry to make money in. Loblaws has the economic clout, geography and management experience to dominate any market. Margins are being hurt.
WAIT
Has been undergoing margin pressures preparing for Wal-Mart. About 10 X next year's earnings, so is very cheap. Wait to see when Loblaws margin compression comes to an end.