Daily Stock Opinions and Ratings

Opinions

Neil WickhamSobeysSBY.TODON'T BUYNov 23, 2004

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.

Neil Wickham

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$35.80

Stock price when the opinion was issued

food stores

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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

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.

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Neil WickhamSobeysSBY.TODON'T BUYNov 23, 2004

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