Q: Saputo reported what seemed to me good results but the market still sent it down slightly today. Is your opinion of Dec. 2015 that SAP is expensive still held?
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Investment Q&A
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Q: <I>December 03, 2015 (asked by Desmond)
Question: I would like your opinion on Saputo, would it be a buy at this time. Thanks for all the great information this year.
5i Research Answer:
Saputo is not overly exciting, but in this market that is not a bad thing. Good earnings growth is expected over the next two years, but it does have a fairly weak record of meeting estimates. Its business is fairly secure and its balance sheet is 'OK'. It is buying back stock, and at 21X earnings is a bit expensive. Over the past 15 years the stock is up nearly 10-fold, and we would be comfortable with a long term position.</I>
I have to mostly disagree with your response to Desmond regarding SAP. Or at least the tone I extracted from your response.
How could SAP not be anything but exciting if a person is looking to make money? Unless they "play" stocks for excitement as in gambling and look only at short term fun.
If SAP has been almost a 10 bagger in 15 years that is a 16.5%/annum return plus a constant growing dividend. An original investment of say, $100,000 would now be approx. $1,000,000. A profit of $900,000! Most people and retail investors would love to have that big a profit both $ wise and % wise as most never produce that in a life time.
I am an investor who does not care if a company meets estimates! So what? Who cares other than the media? Without insider information is not an estimate just that? An estimate, a guess?What matters is the question, "Is the company growing itself, revenue and free cashflow...properly and in a sustainable way?"
I find SAP to be exciting in the short term because I can sleep at night knowing I do not have to monitor it daily/weekly and it should continue to make me money as I sleep with a growing dividend income stream for my future retirement days. Just like CNR, ENB, BNS....
Have a great day.
Stan
Question: I would like your opinion on Saputo, would it be a buy at this time. Thanks for all the great information this year.
5i Research Answer:
Saputo is not overly exciting, but in this market that is not a bad thing. Good earnings growth is expected over the next two years, but it does have a fairly weak record of meeting estimates. Its business is fairly secure and its balance sheet is 'OK'. It is buying back stock, and at 21X earnings is a bit expensive. Over the past 15 years the stock is up nearly 10-fold, and we would be comfortable with a long term position.</I>
I have to mostly disagree with your response to Desmond regarding SAP. Or at least the tone I extracted from your response.
How could SAP not be anything but exciting if a person is looking to make money? Unless they "play" stocks for excitement as in gambling and look only at short term fun.
If SAP has been almost a 10 bagger in 15 years that is a 16.5%/annum return plus a constant growing dividend. An original investment of say, $100,000 would now be approx. $1,000,000. A profit of $900,000! Most people and retail investors would love to have that big a profit both $ wise and % wise as most never produce that in a life time.
I am an investor who does not care if a company meets estimates! So what? Who cares other than the media? Without insider information is not an estimate just that? An estimate, a guess?What matters is the question, "Is the company growing itself, revenue and free cashflow...properly and in a sustainable way?"
I find SAP to be exciting in the short term because I can sleep at night knowing I do not have to monitor it daily/weekly and it should continue to make me money as I sleep with a growing dividend income stream for my future retirement days. Just like CNR, ENB, BNS....
Have a great day.
Stan
Q: Peter; Just a add on to Peters quesrion re SAP and the TPP- the US congress still has to pass it and we all know how well they get along with a looming election. Publish if you wish. Rod
Q: The Trans-Pacific Partnership(TPP) will reduce or eliminate barriers on a range of canadian exports,inclyding machines,canola,beef & pork,minerals,forestry products & seafood.It will also allow more foreign dairy into canada & expose workers to cheaper foreign labour. Please advise if TPP will have any material impact on stocks,especially in 5I portfolios.If has,please provide some names that are adversely impacted & some names that are fovourablly affected.Appreciate your usual great advices & services.
Q: If Canada enters into the Trans Pacific Trade agreement, as our current government is determined to do, a side effect will be on our dairy industry as cheaper US products will start to be allowed into our country. How do you see this effecting Saputo? (SAP-T)
Q: From time to time, the feds negotiate for a free trade deal- with Europe, the TPP,- what would happen to SAP if they gave up daily protection to open other markets? How much does SAP depend on the daily marketing board?
Q: Hi guys. Was there anything in the previous Saputo's earning report that may lead one to suspect future earnings contraction?
I have 22% in what I consider the "consumer" portion of my portfolio made up of names like atd.b, gil, emp.a, l, hlf, dol and the only stinker of the group, SAP, with 2.3% position. Going forward, do you think SAP is the type of company you can slowly allocate a 5% position at current valuations?
Thanks, again.
John
I have 22% in what I consider the "consumer" portion of my portfolio made up of names like atd.b, gil, emp.a, l, hlf, dol and the only stinker of the group, SAP, with 2.3% position. Going forward, do you think SAP is the type of company you can slowly allocate a 5% position at current valuations?
Thanks, again.
John
Q: Peter and Team
Would you please provide your opinion on SAP, value and future prospects.
Would you please provide your opinion on SAP, value and future prospects.
Q: I would appreciate your comments on Saputo (SAP)
Q: Could you comment on possible implications for Saputo ( SAP )as a result of the reported EU trade deal which would allow Europe to double its duty free access to the domestic Canadian cheese market. Thanks.
Q: Hi Peter, anything material contributing to Saputo's (SAP) weakness, or just related to general market conditions? If the latter, is this a good entry point? Thanks.
Q: Re: saputo
What is your opinion about Saputo at this time? Is the share price near the top for awhile?
What is your opinion about Saputo at this time? Is the share price near the top for awhile?
Q: What is your view on Saputo? It's recently had a huge run with a recent acquisition. Is this price too expensive? I would be holding this for the long-term. Thank you and Happy New Year!
Q: What is your opinion about Saputo recently did a secondary IPO at 41.70?