Empire Company Limited (EMP.A) - Page 2
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Thread: Empire Company Limited (EMP.A)

  1. #11
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    It's pretty scary when it is necessary to write off billions from an acquisition made only 3 years ago. They paid too much and the business is struggling.

    The market tends to like these deals when they happen, but there has been no value creation yet.


  2. #12
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    They paid too much, the acquisition is concentrated in a market that will be economically depressed, and they bungled the integration.

  3. #13
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    Still plenty of time for them to turn it around. If EMP got low enough, I'd consider jumping in (definitely would have to be below $20, preferably $17-18). Would much rather buy a beat up grocer than Metro or Loblaws at 20+ earnings for 5% or less growth.

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  5. #14
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    Yes. I'm not sure we've seen the end of the bad news though.

  6. #15
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    I would be a buyer under $20.

  7. #16
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    might be a good hold here for the next 6 months to a a year

  8. #17
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    Apr 2016
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    Attractive

    Obviously, sentiment is that of dislike towards this stock.However, after looking at the cashflows over the past 5 years and the current forward estimates, this stock looks quite attractive even at $22.

    Even if we assume a long term 5% decline in cashflows, $22 looks fairly valued. I may pull the trigger soon on this.

    Any feedback is appreciated.

  9. #18
    Senior Member
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    Quote Originally Posted by osman3500 View Post
    Obviously, sentiment is that of dislike towards this stock.However, after looking at the cashflows over the past 5 years and the current forward estimates, this stock looks quite attractive even at $22.

    Even if we assume a long term 5% decline in cashflows, $22 looks fairly valued. I may pull the trigger soon on this.

    Any feedback is appreciated.
    I would agree that ~ $22 represents fair value. Personally, I would wait but that's just my stinginess coming through.

  10. #19
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    Apr 2016
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    Quote Originally Posted by treva84 View Post
    I would agree that ~ $22 represents fair value. Personally, I would wait but that's just my stinginess coming through.

    I decided to hold off for a while as well with the safeway integration issues and the Alberta situation possibly taking a few quarters to sort out.

  11. #20
    Senior Member
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    British Columbia
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    Broke down below $22, new 52 week low. Many consumer staples names have had a bad start to Q2.


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