Investment Q&A

Q: Why has Metro fallen off of a cliff? Would you be inclined to invest in it now or sell it and go into better opportunities in the sector like AMZN? I have a 2.5% position in it at around $29.

Q: Do you have a view on Metro's acquisition of a prepared food delivery company today?

Q: I need to increase my holdings of Consumer staples. Please rank the following in order of your preference when the main focus is dividend growth with secondary goal of capital appreciation.
ATD, L, MRU, SAP, WN, EMP.A, MFI, BCB, PBH, PJC.A

I can be patient in the timing of my purchases. Do you think this is a good time in the economic cycle tp purchase this sector?

Many Thanks

Paul

Q: Please advise of any insight as to the weakness in Metro today along with the other Canadian Grocery Store Chains too...

Dave

Q: Saputo earnings were 0.42 cents per share. Can you tell me what the expectations were and what the is the new current P/E ratio? Google Finance doesn't seem to adjust the P/E ratio according the recent earnings. Do you think Metro would be a good switch? Seems like Saputo is starting a downtrend whereas Loblaws and Metro are in uptrends? I'm not looking for confirmation, but rather for flaws in my observations.

Q: Could you compare Loblaw and Metro? Loblaw is in the 5i Income portfolio, but I am somewhat more inclined toward MRU. I like the ongoing contribution to MRU's bottom line from its ATD.B shares and due to current share price weakness, MRU looks to at an attractive entry point. As always, I would appreciate your perspective.

Q: I used to own both Kruger, Supervalue, Metro but sold a year ago when it was clear that they would be hit over the past year by food deflation. I believe it is time to start buying on value. How would you rank the three? Your opinion may alter my initial thought of buying equal weights of each.

Q: Hi I see all 3 pulled back today (Wed) , could you clarify the reason
and which do you like best

Thanks

Q: According to the RBC Direct Investing data base MRU has a lower p/e, higher roe, lower debt to capital, higher net profit ratio, larger sales growth and a better 3 year stock performance { 50% vs 100% }. Why do you favor L so much? Thank you.

Q: Hello Peter and 5i team,
Our sector percentage in the consumer staples space is a low weighting , having only ATD.B. We would like to add one small cap and one large cap. In the small cap space we like PBH. Is it a good time to enter this sector now and what is your favourite large cap?
thank you as always for your opinion.

Q: Hi team,could you please give a reason why METRO (mru) is down the last
couple of days, is it a buy?
Thx

Q: MRU hit a new 52 week high early in today's session...and then proceeded to drop a large amount. seems to be normal volume. Are you aware of anything that may have caused this? What are your general feelings about MRU? Thank you as always.

Q: I am overloaded in the Consumer Staples Sector. I have MRU, ATD.B, PBH, & BPF.UN. and would like to lighten up by dumping one. Am loathe to dump Boston Pizza because of its 7.44% Y. Would you please list them in terms of growth possibility and which one you think would generate the least returns over say 1 - 3 yrs time frame.

Q: My girlfriend is building herself a small portfolio with low to medium risk stocks, she owns equal parts DOL, CP and ATD.B. She now has the cash to add 2 more stocks in her portfolio. I was suggesting her L or MRU in retail .I was also thinking MTY,BPF.UN or AW.UN in the food sector. What do you suggest ? Thank you !

Q: I've been looking at companies in the groceries line, and am impressed by Metro's ROE of 20% or so. However, on reading your past responses to questions on Metro I see you don't rank it as "best of group". Do you still think Loblaws is better for a medium term hold (or some other, like Dollarama)? I already own ATD.B so that is a consideration, I suppose. Thanks for your always excellent advice.

Q: What would be your choices today for long tern inflation protection while still generating decent income.
Great service.
Thanks

Q: Hi,
Does Metro own a chunk of Alimentation or Jean Coutu? If I were to switch from Metro to Loblaw, should I also buy the company (ATD or PJC, depending on which MRU owns) to round out the investment?
Thanks, Heather

Q: Metro just announced its quarterly results. Everything is up: net income, same store sales, EPS, etc. Metro has raised their dividend each year for more than 10 consecutive years. In 2010 it was 22 cents and is now 47 cents per share - an increase of 113%. The ROE is consistently above 15%. It is buying back shares at a rapid rate - possible financial engineering because total revenues have not increase in past few years. All the metrics are what I look for in a stock (except for the lack of revenue increase) - high ROE, increasing dividends and EPS, share buybacks.

But MRU is in the food retail business. With fierce competition from Empire, Loblaws, Wal-Mart and Costco this stock scares me despite the numbers. Should I be scared or can I pull the trigger and buy it?

Q: 10:14 AM 4/9/2015
Hi 5i staff
You show Metro having a 4.1% dividend in your "5i Filter - Very Shareholder Friendly" Blog Table today, but when I search various sources I get a 1.80% dividend at the Morningstar website, and a 1.29% yield from the TSX website. What is correct.
Thankyou... Paul K

Q: Reports are that Metro will be buying back stock. Can you advise if that is a positive for the stock? Also reports today that several analysts were downgrading the stock. Would the buy back of the stock be a reason for the downgrade? Tnx.