Empire Company (A)

EMP.A-T

TSE:EMP.A

31.57
0.09 (0.29%)
Empire Company Limited is a Canadian conglomerate engaged mostly in food retail and corporate investments. The company is headquartered in Stellarton, Nova Scotia. Empire Company also owns the Sobeys supermarket chain.
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Analysis and Opinions about EMP.A-T

Signal
Opinion
Expert
WATCH
WATCH
April 14, 2016

They are having trouble with the Safeway merger and the markets out west. Model price is $25.26, a 25% upside as of the close yesterday. He thinks it will go down to $18.35, however. People who got caught will become sellers. They are going to a price war in Quebec. He might get some at $18.35 personally. It is cheap and it gets cheaper.

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They are having trouble with the Safeway merger and the markets out west. Model price is $25.26, a 25% upside as of the close yesterday. He thinks it will go down to $18.35, however. People who got caught will become sellers. They are going to a price war in Quebec. He might get some at $18.35 personally. It is cheap and it gets cheaper.

COMMENT
COMMENT
April 11, 2016

CEO had made it clear they were having issues with their integration with Safeway. They were bringing in the SAP system which is always very cumbersome for them. For the next few quarters after that, there have been some sizable misses. Also, this is more of a West Coast focused company. However, it is still a grocery with great real estate, great assets and the probability of making great synergies down the road. On the income side of your portfolio, this is a good time to tuck this away for the next few years, and you will probably do really well.

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CEO had made it clear they were having issues with their integration with Safeway. They were bringing in the SAP system which is always very cumbersome for them. For the next few quarters after that, there have been some sizable misses. Also, this is more of a West Coast focused company. However, it is still a grocery with great real estate, great assets and the probability of making great synergies down the road. On the income side of your portfolio, this is a good time to tuck this away for the next few years, and you will probably do really well.

WAIT
WAIT
April 8, 2016

The retail grocery business in Canada had a very hard time because Wal-Mart (WMT-N) and other US chains really had expanded their grocery business. Last year, for the 1st time, that expansion really slowed down, which was a positive for companies like this. However, the Sobeys/Safeway merger didn’t go smoothly. This may have taken the focus off the core Sobeys’ business, which had to drop their prices in Western Canada. That is going to put pressure on the whole retail grocery sector. The food business in general is a good business. Also, feels low energy prices are going to be a positive for them. Still trading at historically high levels and is somewhat overvalued.

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The retail grocery business in Canada had a very hard time because Wal-Mart (WMT-N) and other US chains really had expanded their grocery business. Last year, for the 1st time, that expansion really slowed down, which was a positive for companies like this. However, the Sobeys/Safeway merger didn’t go smoothly. This may have taken the focus off the core Sobeys’ business, which had to drop their prices in Western Canada. That is going to put pressure on the whole retail grocery sector. The food business in general is a good business. Also, feels low energy prices are going to be a positive for them. Still trading at historically high levels and is somewhat overvalued.

DON'T BUY
DON'T BUY
April 6, 2016

He does not follow this as closely as other grocers. He rates Metro and then L-T above this one.

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He does not follow this as closely as other grocers. He rates Metro and then L-T above this one.

DON'T BUY
DON'T BUY
April 4, 2016

(Market Call Minute.) He is still on the sidelines. The last quarter showed they still have trouble with the acquisition they did on the Sobey’s side. He would rather own Metro or Loblaw’s.

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(Market Call Minute.) He is still on the sidelines. The last quarter showed they still have trouble with the acquisition they did on the Sobey’s side. He would rather own Metro or Loblaw’s.

WAIT
WAIT
March 28, 2016

They had trouble integrating Safeway. At the same time they got hit with a depression in Alberta where Safeway operates. He thinks they will get through it. They have great land holdings, good real estate. Their market share has slipped a little in Ontario, but they are strong out East. He owns Weston’s. But empire is looking a little more attractive. Wait for integration aspects to be put behind them.

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They had trouble integrating Safeway. At the same time they got hit with a depression in Alberta where Safeway operates. He thinks they will get through it. They have great land holdings, good real estate. Their market share has slipped a little in Ontario, but they are strong out East. He owns Weston’s. But empire is looking a little more attractive. Wait for integration aspects to be put behind them.

TOP PICK
TOP PICK
March 18, 2016

As one of the 3 biggest supermarket chains in Canada, it is very unusual to be down 25% in the year. They mishandled the Safeway integration. Management should succeed in turning the operations around. Dividend yield of 1.73%.

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As one of the 3 biggest supermarket chains in Canada, it is very unusual to be down 25% in the year. They mishandled the Safeway integration. Management should succeed in turning the operations around. Dividend yield of 1.73%.

WAIT
WAIT
March 15, 2016

This had a pretty big miss in its Sobey’s trying to integrate the Safeway acquisition. They are having a lot of trouble. Valuation looks extremely cheap, but he would wait for the 1st quarter of a turnaround, which could take another 6 to 8 quarters.

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This had a pretty big miss in its Sobey’s trying to integrate the Safeway acquisition. They are having a lot of trouble. Valuation looks extremely cheap, but he would wait for the 1st quarter of a turnaround, which could take another 6 to 8 quarters.

DON'T BUY
DON'T BUY
March 10, 2016

They are taking a restructuring charge over Safeway. She has L-T. Safeway is Alberta centered. She likes the Shopper’s business of L-T. Sobeys is doing fine, but it is the Safeway integration.

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They are taking a restructuring charge over Safeway. She has L-T. Safeway is Alberta centered. She likes the Shopper’s business of L-T. Sobeys is doing fine, but it is the Safeway integration.

BUY
BUY
January 28, 2016

These types of companies are saturated. What you will see from these companies is what they have done in the past, generating a significant amount of free cash flow, and using it to make further acquisitions. Grocery stores are the best performers in a lousy market. He sees more value creation over the long-term.

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These types of companies are saturated. What you will see from these companies is what they have done in the past, generating a significant amount of free cash flow, and using it to make further acquisitions. Grocery stores are the best performers in a lousy market. He sees more value creation over the long-term.

COMMENT
COMMENT
January 6, 2016

Has had a great run. Not cheap, because a lot of portfolio managers, because they couldn’t buy the commodity complex, moved and bought other sectors. In Canada there isn’t a lot of choice so this area was piled into. They are all expensive and there is no room for missing. The grocery sector generally doesn’t fail.

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Has had a great run. Not cheap, because a lot of portfolio managers, because they couldn’t buy the commodity complex, moved and bought other sectors. In Canada there isn’t a lot of choice so this area was piled into. They are all expensive and there is no room for missing. The grocery sector generally doesn’t fail.

PAST TOP PICK
PAST TOP PICK
November 23, 2015

(Top Pick Dec 2/15, Down 2.43%) He has been selling it the last few days and will finish today. The Safeway acquisition is the problem.

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(Top Pick Dec 2/15, Down 2.43%) He has been selling it the last few days and will finish today. The Safeway acquisition is the problem.

TOP PICK
TOP PICK
October 14, 2015

Target left Canada so we don’t have to worry about grocery competition. He thinks the stock has been marked down too much. The balance sheet is repaired and he hopes they take a look at Rexall.

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Target left Canada so we don’t have to worry about grocery competition. He thinks the stock has been marked down too much. The balance sheet is repaired and he hopes they take a look at Rexall.

WATCH
WATCH
September 29, 2015

The integration with Safeway was not going so hot. It was a short term issue according to management. Their SAP program was put into Safeway so they could procure for both chains with the same system. You need to buy companies with a temporary issue that they can overcome. It is pretty attractive to him but you might want to give it another quarter.

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Empire Company (A) (EMP.A-T)
September 29, 2015

The integration with Safeway was not going so hot. It was a short term issue according to management. Their SAP program was put into Safeway so they could procure for both chains with the same system. You need to buy companies with a temporary issue that they can overcome. It is pretty attractive to him but you might want to give it another quarter.

WAIT
WAIT
September 16, 2015

Came out with disappointing earnings and same-store sales growth at 1.2% versus Metro at 4.2% and Loblaw’s at 4.3%. They fell down mainly because of trying to work with Sobeys (SBY-T) and the whole office integration. If you look back Metro (MRU-T) had done exactly the same thing in 2007-2008, which really hurt their bottom line. After that their margins got better. Loblaw’s (L-T) went through the same thing. Technically, this has broken down below its recent low earlier in the year. It is consolidating back and forth. Over the long-term it is just a matter of how much longer this is going to have an impact. He would wait for it to go above its low of earlier this year.

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Empire Company (A) (EMP.A-T)
September 16, 2015

Came out with disappointing earnings and same-store sales growth at 1.2% versus Metro at 4.2% and Loblaw’s at 4.3%. They fell down mainly because of trying to work with Sobeys (SBY-T) and the whole office integration. If you look back Metro (MRU-T) had done exactly the same thing in 2007-2008, which really hurt their bottom line. After that their margins got better. Loblaw’s (L-T) went through the same thing. Technically, this has broken down below its recent low earlier in the year. It is consolidating back and forth. Over the long-term it is just a matter of how much longer this is going to have an impact. He would wait for it to go above its low of earlier this year.

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