Shoppers Drug Mart Corp (SC.TO) Buy, Sell or…

Shoppers Drug Mart Corp (SC.TO)

0.00

-0.00 (0.00%)

55 watching

HOLD

At this point you don't know where the bottom is. If you bought it and you are down, hang on to it but if you don't own, wait a few more months to see where the dust settles.

DON'T BUY

Chart does not look good. Had support for a long period of time but then the news broke out but Ontario legislation and the stock broke down very badly. Not showing signs of bottoming yet.

DON'T BUY

Just made an agreement with Rogers to sell their products in their stores. This is not enough of a material event to make a difference in this stock. Stock had a nasty downdraft because of the Ontario government's proposed legislation.

SELL

Been pounded significantly since Ontario government decided to change the basic payment method on pharmaceuticals. There will also be price competition between brand drugs and generics, which will affect earnings.

HOLD

Likes management and the model. Disappointing over the last year. It has gone nowhere. Thinks the worst is behind them. Earnings are going to be hit by 10-15%, by the still likes the model. He may sell if he finds something to invest the money in.

BUY

Ontario government recently introduced a cost cutting measure, which not only lowers the costs they are paid but also cuts their professional allowance. Earnings growth will be cut for the next few years. Current valuation stock is properly priced. Good company over 2-3 years. 2.5% dividend.

DON'T BUY

Has suffered because of the stroke of the government pen. You are now in “no man's land” with the stock being back to 2005-2006 levels. Analysts probably don't have a clue as to what earnings are going to be.

BUY

Stock has suffered because of the proposed new legislation by the Ontario government. At this price, he would be a buyer. Although earnings will be lower, they will continue to grow for the foreseeable future.

DON'T BUY

Expecting earnings power of only $3 in 2011, which is lower than in 2010. Most retailers would have a 13X multiple that would make a $39 target. Reduced his position significantly.

PAST TOP PICK

(A Top Pick Apr 14/09. Down 7.67%.) Reduced his holdings.

COMMENT

Earnings have been relatively flat. He is neutral on the stock at this point. He would rather look at the more cyclical retailers. Consumer staples space, which historically is not going to be one of your best drivers when the economy is rebounding.

DON'T BUY

Not buying anything in this sector. The difficulty is that the story is out, growth is going to be going forward but it will be more and more difficult as you saturate your market. Would like it if they had a strong dividend.

PAST TOP PICK

(A Top Pick March 2/09. Up 8.3% not including dividend.) 5.19% bond due 2014. (Manulife (MFC-T) acquired his bond fund.)

TOP PICK

Stock has flat lined even though earnings have gone up. Expecting to grow square footage by 10% each year over the next 3 years. Adding new stores and rejuvenating old ones. The fear of the Ontario drug rebate program is built into the price. Deeply undervalued. Long-term hold.

COMMENT

Great company. Have been concerns at various times that a US big chain would come into Canada to compete. They run great stores and have a good cash flow. Stock is not moving because of a probable multiple correction. At some time, the multiple will get down to a point where it will be a Buy.

Showing 121 to 135 of 452 entries

Wealthica The ultimate 360° Tracker Your financial life in one place, automatically

Most Recent Experts

Brian Madden

First Avenue Investment Counsel

The Panic-Proof Portfolio (Stockchase Research)

Stockchase Premium

Darren Sissons

Campbell Lee & Ross

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

Joe Terranova

Virtus Investment Partners

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Shoppers Drug Mart Corp (SC.TO)