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.
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.
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).
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.
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.