Stockchase Opinions

Martin Hubbes, CFA Sobeys SBY-T DON'T BUY Sep 01, 2006

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.
$39.150

Stock price when the opinion was issued

food stores
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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.
WEAK BUY
Model price is about $38. Doesn't qualify for their current portfolio.
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.
HOLD
Speculation that this and Metro (MRU.SV.A-T) might be involved with the purchase of A&P Canada.
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).
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.
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.
DON'T BUY
By the parent company, instead. Empire Corp. Has better assets, and a better mix of stuff.
BUY
The cheapest of the bunch. Not a bad defensive investment.