Canadian Companies – Brands on the Decline; Where We Don’t Like to Shop (2019)
According to a national survey, Canadians have favourite stores that they trust and admire. We made a list of these companies.
On the other hand, there are some companies that Canadians don’t like or don’t trust. These companies might suffer from bad publicity or have business practices that are not viewed favourably by Canadians. Having a positive reputation is important to have a reputed and thriving company. Here are the companies that Canadians don’t like to shop at:
Pfizer Inc (PFE-N)
The epipen shortage and general distrust of pharma-companies have hit their reputation among Canadians. The news of overcharging for epipens in the US was particularly poorly received and criticized. However, Pfizer remains one of the largest pharmaceutical company in the world. The health sector generally outperform during bear markets so this is a safe large cap pick for those worried about a recession.
Good quality stock that won't hurt you. Reasonable valuation, nice dividend. Bad news is everything is already built into the stock. Where's the growth past 2023? Not much upside. He'd add at $32-36, but not here at $44.
Telus Corp (T-T)
Canadians have a poor view of Telus’ onboarding discounts on plans that expire. There is general sentiments against the telecommunications sector in Canada, as they are seen as an oligopoly that lacks competition. The company itself is very well managed and they’ve done well. They pay a nice dividend.
T vs. BCE Likes telecoms in general, giving a mix of some growth with very good dividend yields. Yield looks secure, with about a 5% growth rate. Yield about 4.4%. He prefers BCE, with a yield of 5.44% and its consistent cashflow and growth. Media, sports teams, and different networks are helpful to BCE's growth.
Cascades Inc (CAS-T)
They’ve done poorly last year as there are worries over the economy, and this company follows it. They produce 100% recyclable paper and packaging. Their facilities have begun using sustainability as credibility, but it seems it hasn’t quite penetrated the Canadian consumer’s radar.
They just sold their European business, which was really a distraction for them. Now, they can concentrate on their North American tissue and board operations. Their current PE is very attractive, as is price-to-book. He expects tissue demand to hold, post-Covid. (Analysts’ price target is $20.00)
The famed coffee chain was among the companies who placed at the bottom of the ranking list. They’ve been facing increasing competition, especially from McDonald’s. They’ve been innovative and is still a phenomenal company. They are moving into China, although it hasn’t yet panned out.
Lowes Companies Inc. (LOW-N)
Loews’ purchase of Rona was poorly received, especially in Quebec. It seems that Home Depot (HD-N) has the upper hand to attract Canadians. However, they occupy half the home improvement market and have good cash flow. Their management is strong and they do not carry the premium valuation of Home Depot (HD-N).
Allan Tong’s Discover Picks Lowe’s company boasts 35.1% YOY same-store sales growth and a 69% leap in quarterly profits. The company plans to expand online sales and add private brands. True, DIY customers shopped a little less this spring, but those folks were spending more on big-ticket items. Shares of LOW popped 4% immediately after…
Reitmans (Canada) Ltd. (A) (RET.A-T)
A large mall based retailer specializing in women’s apparel. A well run company in a sector people hate. There have been difficulties in the retail space in general, but they are one of the few who have done alright. They pay a good dividend of $0.05 a quarter which should be safe as they are making money and have no debt.
(A Top Pick Oct 22/18, Down 35%) He sold this at $3. They offered to buy 15 million shares of stock and the took the offer. He is glad to be out. Sales are falling and they have closed 48 stores. He wonders if management should be changed. Their online sales have been going up,…