Shoppers Drug Mart Corp (SC.TO)

TOP PICK
Likes companies that sell a lot of non-discretionary products.
PAST TOP PICK
(A Top Pick Dec 31/07. Down 13%.) Bought as a defensive holding and has held up reasonably well. Recession resistant. Has growth in square footage allowing them to grow earnings.
PAST TOP PICK
(A Top Pick Dec 20/07. Down 14%.) Sold his holdings. Would let this go down a bit further before Buying.
TOP PICK
Only down 14% over the last year. Extremely good operators.
TOP PICK
(A Top Pick Oct 24/07. Down 19%.) One that you can own on a sustainable basis. Every portfolio should have a stock that it can own over a long period of time. Increasing dividend. Great proxy for drug sector, consumer discretionary and consumer staple stocks.
BUY
Nice bottom happened over the last week or so. Good reason to believe it will come back to the breakdown level of above $51 between now and January.
WAIT
Drug stores have not performed well in the US. Thinks there will be a pullback on the beauty side of their operations, which is the high margin part. They are looking at it closely. It is a well managed company
TOP PICK
Wonderfully successful operator. The expensive with a PE at 22 times but the earnings growth continues to chug along in the mid teens. Continuing to open new stores. 1.6% yield. Good defensive play.
BUY
Have had consolidation in the drugstore area. Bringing all the cosmetics to the front of the store. This is a growth stock and has a growth stock multiple. As long as it continues to deliver good earnings growth it justifies that multiple.
HOLD
Probably one of the best managed companies in Canada. Decent yield. On the growth story he doesn't know what the next metric will be to move this up. Doesn't have enough of a yield to entice him.
BUY
Have shown very resilient earnings growth. Still a footprint to expand in Canada. Outlook is still quite good.
DON'T BUY
Great results. Doesn’t like their high PE multiple of 21X.
COMMENT
This is the retailer she is looking at closely. Great in a difficult environment. Top quality company and top merchandiser. Likes their store layout strategy.
BUY
(Market Call Minute.)
BUY
On a 6 month to one year this is an economic sensitivity pick. Would like to own this one and trade it once it goes up 15%.
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