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.
(A Top Pick Sep 24/20, Up 51.5%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with PFE is progressing well. We now recommend tailing up the stop (from $42) to $46.
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.
Expensive. Premium to peers. Wireless is a great place to be. Nearing end of capital deployment for fibre, so will have more free cash. Tentacles into agriculture and health. Quality name. Trades at 24x 2023, growing at 15%, so it works. Dividend works. Benefits from world opening up. Great stock for a dividend play.
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.
Selling under book value. Focusing on containerboard and tissue. Improved balance sheet. Attractive valuation. Good prospects. Could be some cost pressures in source materials, but these can be passed on. Good potential for a good capital gain. Yield is 3.42%. (Analysts’ price target is $19.21)
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.
(A Top Pick Jan 29/21, Up 9%) Great holding. Still grew despite Covid. China growth has slowed. Still a growth story long term. A bit expensive now, wait a bit for a new purchase.
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).
Don't fear a shutdown, but a slowdown due to the new Omicron variant. Don't fear a shutdown, but a slowdown due to the new Omicron variant. Lowes as well as Home Depot and Tractor Supply reported good earnings. The group will benefit from a slowdown. Lowes was slow to run up vs. these peers, and…
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,…