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Loblaw Companies Ltd (L-T) opinion on 2017-10-12

Last Price Recorded: 68.1800 on 2017-12-15

ON STOCKCHASE SINCE Nov 2000

food stores
food stores
COMMENT

Stan Wong
Loblaw Companies Ltd was $68.720 at time of opinion
Owned : Unknown

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.

OPTIMISTIC

All opinions for L-T (577)

131 BUY
24 BUY on WEAKNESS
67 COMMENT
149 DON'T BUY
36 HOLD
2 PARTIAL SELL
34 PAST TOP PICK
21 SELL
2 SHORT
2 STRONG BUY
59 TOP PICK
3 VAGUE
20 WAIT
11 WATCH
16 WEAK BUY
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All opinions for L-T (577)

131 BUY
24 BUY on WEAKNESS
67 COMMENT
149 DON'T BUY
36 HOLD
2 PARTIAL SELL
34 PAST TOP PICK
21 SELL
2 SHORT
2 STRONG BUY
59 TOP PICK
3 VAGUE
20 WAIT
11 WATCH
16 WEAK BUY
View All

More experts covering L-T

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Add L-T to Watch List

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