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The Kraft Heinz Company (KHC $23.10)
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ConAgra Brands Inc. (CAG $16.34)
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General Mills Inc. (GIS $43.45)
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Loblaw Companies Limited (L $61.50)
Q: GIS, KHC, CAG and CPB are all near long term technical lows. I know these are not 5i type of investments. However, in looking for a reasonable value play and using Loblaw as a relative baseline of 10 (unless you have a better comparative), are you able to provide an overall approx. rating of each with dividend and balance sheet sustainability in mind? Are there any major concerns that would make you completely avoid any, or all of these?
5i Research Answer:
If L is a '10', we would rate CAG 5, GIS 5, KHC 6. We don't see any real problems, but there is just little growth, and all could find themselves as value traps. CAG's smaller size makes its dividend riskier than the others, but not really that worrying. It would be our least-favourite here. These stocks will likely do better in a risk-off market, but right now investors are finding more excitement elsewhere.