Loblaw Companies Ltd | StockChase
573
Loblaw Companies Ltd (L-T)

Last Price Recorded: $69.2400 on 2017-11-17

ON STOCKCHASE SINCE Nov 2000

food stores

Loblaw Companies Ltd


Signal Opinion Expert

2017-11-03

DON'T BUY
Loblaw Companies Ltd (L-T)

Q2 earnings were up 10%. Trading below its five-year average by about 2 multiple points. Food inflation is up for the 2nd month in a row after a year of deflation. Minimum wage escalation is bad for them. Have to do a lot of heavy lifting here for their EPS to grow at 7%, and to keep their margins up at around 8.5%. He would not be a buyer.

food stores
Greg Newman

Director & Portfolio Manager, Scotia Wealth Management

Price: $67.040
Owned: No

2017-11-02

DON'T BUY
Loblaw Companies Ltd (L-T)

They have probably exhausted the benefit of the Shoppers acquisition although there is a little they can do with groceries on the pharmacy side.  There is intense competition in grocery not counting AMZN-Q.  It is not the same in Canada because of geographic dispersal.  He does not think growth is appealing in this sector and so is not into it.

food stores
Bruce Campbell (1)

President, Campbell and Lee InvMngmnt

Price: $67.390
Owned: No

2017-10-12

COMMENT
Loblaw Companies Ltd (L-T)

There is an impact for a stronger Cdn$ being able to purchase from the US, however, most grocers have currency hedging arrangements to offset currency fluctuations. The amount of purchases from US are much lower than you would imagine. It could be as low as 10% or lower. The stock is trading at about 10X Enterprise Value over EBITDA, which is in line with historical norms. Pays a 1.5% dividend yield. There are mounting costs as well as mounting competition. Food deflation hasn’t really helped. Minimum wage hikes are estimated to be about $90 million in additional costs per year. Healthcare reform is lowering drug generic drug prices, therefore pushing down margins. Too many headwinds face this company.

food stores
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $68.720
Owned: Unknown

2017-09-28

DON'T BUY
Loblaw Companies Ltd (L-T)

With wage inflation, this one is going to be tough. To make 7% EPS compounded annual growth over the next couple of years, they are going to need to be very aggressive with their cost reductions. He would stay away for a little while.

food stores
Greg Newman

Director & Portfolio Manager, Scotia Wealth Management

Price: $67.640
Owned: Unknown

2017-09-27

COMMENT
Loblaw Companies Ltd (L-T)

Loblaw (L-T), Empire (EMP.A-T) or Metro (MRU-T)? This has proven to be the best run grocer in Canada.

food stores
Norman Levine

Managing Director, Portfolio Management Corp

Price: $67.130
Owned: Unknown

2017-09-13

COMMENT
Loblaw Companies Ltd (L-T)

The dominant one in grocery chains in Canada. The grocery industry lately has seen food deflation. Some are facing higher labour costs if minimum wage initiatives go forward, which will be fairly significant to a company like this. He prefers to own this through George Weston (WN-T), which gives you the bakery business as an added diversification. In groceries, this company would be his 1st choice.

food stores
Michael Sprung

President, Sprung Investment Management

Price: $65.010
Owned: No

2017-08-24

PAST TOP PICK
Loblaw Companies Ltd (L-T)

(Top Pick Apr 15/16, Down 2.26%)  If anyone can get through AMZN-Q, L-T can.  They have very deep pockets.  Their balance sheet looks good.  They are moving silently into health through Shoppers.  Sometimes there are health clubs within their stores.  This may make them okay.

food stores
Rick Stuchberry

Portfolio Manager, Richardson GMP

Price: $67.020
Owned: Yes

2017-08-24

DON'T BUY
Loblaw Companies Ltd (L-T)

He does not have a lot of exposure to the consumer staples space.  Prices should start dropping at Whole Foods next week after AMZN-Q acquired them.  The PE is 15 times forward earnings.  It is not cheap.  There is increased competition from WMT-N and COST-Q.  AMZN-Q is now also in the picture.  Minimum wage hikes in Ontario will be a challenge also.

food stores
Stan Wong

Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

Price: $67.020
Owned: No

2017-08-23

BUY
Loblaw Companies Ltd (L-T)

It has come off again. It was getting overvalued.  It has its challenges: AMZN-Q and WMT-N as well as drug pricing for Shoppers with Quebec moving that way.  Overall it is a good company and the two loyalty programs coming together should be positive. It should do well.

food stores
Douglas Kee

Chief Investment Officer, Leon Frazer & Associates

Price: $67.920
Owned: Yes

2017-08-11

WAIT
Loblaw Companies Ltd (L-T)

He is always neutral on this. A good place to be after the stock has corrected, and thinks it can correct some more. He can’t see any reason why this would take off. It’s a tough business, but they are well-established.

food stores
David Cockfield

Managing Director, Northland Wealth Management

Price: $67.980
Owned: Unknown

2017-08-09

TOP PICK
Loblaw Companies Ltd (L-T)

The largest grocery chain in Canada and also owns Shoppers Drug Stores, which is working out incredibly well for them. They’ve put a lot of capital expenditure into the IT business, meaning you can order a lot of stuff online. There has been a lot of deflation on the grocery side, and the IT business will help offset that. Dividend yield of 1.5%. (Analysts’ price target is $80.)

food stores
Paul Harris, CFA

Portfolio Manager and Partner, Avenue Investment Management

Price: $68.020
Owned: Yes

2017-07-17

DON'T BUY
Loblaw Companies Ltd (L-T)

There are wonderful opportunities in the food business.  But this one is in a very competitive environment and he does not own it right now.  It does not have a huge competitive advantage.  He is in a wait and see mode with respect to Shoppers.

food stores
Brendan Caldwell

President, Caldwell Securities

Price: $70.890
Owned: No

2017-07-13

TOP PICK
Loblaw Companies Ltd (L-T)

Trading at about 15X earnings. They have rationalized Shoppers quite well. Also, have spent a lot of money on technology. They throw off about $1 billion of free cash flow each year, and a lot of it has been spent on technology and improving stores. There has been a lot of food deflation, and they’ve been able to offset that with better technology. Dividend yield of 1.5%. (Analysts’ price target is $83.50.)

food stores
Paul Harris, CFA

Portfolio Manager and Partner, Avenue Investment Management

Price: $71.370
Owned: Yes

2017-07-12

PAST TOP PICK
Loblaw Companies Ltd (L-T)

(A Top Pick July 12/16. Up 1.86%.) The stock had gone up to about $7-$8 and then Amazon (AMZN-Q) acquired Whole Foods which impacted all the retailers in the US as well as our Canadian grocers. This is a really attractive entry point. Loblaw’s has a pilot project called “Click and Collect” where you can order online. She also likes Shoppers because of the demographics.

food stores
Christine Poole

CEO & Managing Director, GlobeInvest Capital Management

Price: $71.040
Owned: Yes

2017-06-16

COMMENT
Loblaw Companies Ltd (L-T)

The Amazon (AMZN-Q) acquisition of Whole Foods (WFM-Q) brings into question the whole food retailing business in North America. More so immediately in the US, but also in Canada. His desire to be in this business has gone down to zero.

food stores
Norman Levine

Managing Director, Portfolio Management Corp

Price: $72.790
Owned: No

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