Investment Q&A

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.

Q: What do you make of the 3-1 stock split? Is this stock worth investing in now?

Paul

Q: Hello 5I team,
I feel a little repetitious in thanking you for your wonderful service. But, i think that we are all so impressed that we are compelled to do so over and over again!

My question involves Metro (MRU). You mentionned that you didn't think it was one of the best in this area, I believe. You seem to like Loblaws more, if I am not mistaken. But, the question I have concerns the fact that Metro owns a number of Alimentation Couchetarde shares. About seven or eight per cent I believe. Would you see this as a hidden asset and worth holding on to Metro because of? I have a good profit on Metro but I am looking for a few candidates for thinning the herd. Thanks

Q: Your opinion on Metro (MRU) and possible substitutes would be appreciated. When I purchased MRU about a year ago I had looked at it as a "park & hold" type of investment. However, after reading your answer to someone else's question in May/13 when you indicated that MRU is not that kind of company, I realised my mistake. Now it seems that MRU, along with other companies in the same business, are experiencing a tough time and maybe it is time for me to move on. Do you think a switch to either Dollarama (DOL) or Gildan (GIL) would be advantageous? If so, what would you favour at this time as a replacemant (in the same general sector) for MRU - DOL or GIL or something else - I already own Couche Tard (ATD.B) in the Consumer Staples sector?

Q: re Metro MRU.A --in light of recent news, do I take some off the top--I've done well with it over 5 years

Q: I am learning so much from your service. Thank you! I hold both MRU and DOL and have had nice run-ups with them. Would you recommend taking some off the table, or would you advise keeping them as core holdings?

Q: Good Morning;
I am looking at either Empire or Metro to add diversification to my portfolio. Do you have a recommendation on a choice between the two companies?
Thank you for a very useful forum.