Shoppers Drug Mart Corp (SC.TO)

DON'T BUY
(Market Call Minute) In a transition. Battles last year with Ontario government. Difficult to see how they can grow the business like in the last 5 years.
DON'T BUY
Even though Target will create competition, he does not think it is a takeover target. They will be hurt by more US competition. Decent dividend but being assaulted on all sides by competition and government regulations.
WEAK BUY
Is a stable stock, stays near $50. No news, but is up. Expects a pullback but if stock can break above $49. If it can make another dollar or two it might be worth an investment.
PAST TOP PICK
(Top Pick Feb 23/11, Up 6.96%)
BUY
(Market Call Minute.) Raising dividends and cash flow is tremendous. Hated by the street, but buy for the long-term.
DON'T BUY
Ontario legislation on generic drugs was a real blow to the company. Would take a look at this if it got back into the low $30's range.
BUY
Ended year well, one of the better performing stocks on the TSX. Pulled back on news of target’s announcement of expanding into Canada with pharmacies in their stores. Looking at 13-14% earnings growth. Take advantage of dip.
DON'T BUY
There is too much competition. Everyone is getting into everyone else's business. Thinks there is going to be continuing pressure on all avenues of retail.
PAST TOP PICK
(A Top Pick Sept 22/11. Up 3.11%.)
HOLD
There is more colour coming on this in the month of November. Good margins in the from store and they are having some growth. Not inexpensive. He would focus on discount retail.
TOP PICK
[Program signal failed in Sept. Also the web site did not record a clip for top picks. No opinions were recorded for Top Picks. This item was inserted on Nov 30/11.]
DON'T BUY
Safe in this type of environment because of study earnings, but finds the valuations somewhat rich at a 13 multiple. Growth is slow down a little because of drug legislation.
DON'T BUY
The problem here is more political than it is pricing. He sold his holdings some time ago until he could get a clearer picture of where the government regulations where to go on the pricing of drugs. Also yield is not high enough to attract him.
BUY
Hasn't like this one for 4 or 5 years. Got cheaper with the Ontario rule changes and is looking better. Front store sales are really doing well. And be surprised to see it in the mid-$40's in the next 8-12 months.
DON'T BUY
Loblaws (L-T) or Shoppers (SC-T)? Doesn't particularly like either of them. If he had to pick one he would give the benefit of the doubt to Shoppers.
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