Loblaw Companies Ltd (L-T)

Over the last decade, has evolved magnificently into a very different business. Vertically integrated. Purchase of Shoppers has been massive platform for growth. Grocery, pharmacy, and now moving into healthcare. Rich, wait for a pullback. If you own it, hold, don't sell.

Owns Shoppers, and that's one of the reasons he likes it so much. The business is being transformed all over NA, because after Covid they found it was so much cheaper to send you to get a vaccine at a pharmacy than to go to a hospital.

Remarkable sprint for a grocer and drugstore, executing well on both. Benefited from discount banners. Higher margins on strong private label portfolio. SDM is doing very well, same-store sales going up, pharmacies expanding scope of service -- increases revenue and foot traffic. Wait for a pullback to enter.

Good run, don't add new capital, not as cheap as it was. Perhaps sell calls. Name still works. 15x 2025 earnings, 10% EPS growth, healthy general margin expansion. Strong Shopper's numbers last quarter. Still likes it longer term.

Defensive consumer staple going into economic slowdown. Over half of food banners are in discount, seeing increased traffic. Plus, more people are cooking at home rather than eating out. SDM has great locations, offers Loblaw products; pharmacists expanding roles, and this increases general traffic. Yield is 1.45%.

The chart is consolidating, but has been sideways for the last two years. A trade, with support around $115 to resistance around $121. Historically, this stock rises, consolidates for a while, then breaks out.

It's not their fault that food prices are so high. The bread-fixing scandal didn't help their PR. With long lines at food banks, people need a scapegoat. He owns ATD instead. This sector will remain unpopular even if it makes money.

Very few competitors, and those types of names tend to perform well long-term. Largest grocery retailer, so procures good prices and controls distribution. Shoppers Drug Mart provide lots of earnings. Loyalty programs doing well. As a consumer staple, won't participate with more cyclical names. Defensive part of your portfolio. If you're up nicely, you could take some profits.

Likes it. It's an inflation story. Some consumers are gravitating away from restaurants and back to buying their own food, so it's a volume story too. Good place to be. Trading at a reasonable 15x earnings, not overly expensive. If you think we're getting into a mild recession, which might be prolonged, this is a safe bet.

It has grown its profits very well despite modest revenue growth. It will be challenging for it maintain these high profits over the next couple of years. He is not buying since the near term growth is low.

Has done very well in the last couple of years, reaching 4x book value, a level not seen in 18 years. Spectacular move, but that's it. Upside to $137. Starting to roll over. Hard to say, it's betwixt and between. Be cautious.

Defensive. Owned it a while ago, but Loblaw offers better value, the Shoppers chain, exposure to cities, and better efficiencies. Neither pays a good dividend, but Empire's chart looks attractive now for the short term. 

High quality grocery business (largest in Canada).
Excellent business fundamentals.
Volatile share price - but over the long run is a good business.
Price target of $138.
Upward trend in share price.
Consumers staples a defensive sector with lower risk.

Consumer needs, not wants, is the place to be. Mid-teens PE ratio. A compounder of 14% over the last decade. Slow and steady.

Bought near $60, when it was being ignored. Don't buy the grocers right now, they're near the top having benefited from inflation. Nice 10% growth rate, not a bad 15.6 PE. Good story, but already reflected in the price. Lots of cheap stocks out there, pick one of those.