Gavin GrahamSaputo Inc.SAP.TOCOMMENTOct 01, 2018

Seasonality a factor in this stock - performs better in the summer. Large brand with excellent product selection. Expecting share price to go higher. Would recommend holding. $35 share price seems reasonable. 

Nothing wrong with business, but share price has been weak. Inflation and rising food prices tough on bottom line. Demand for premium brands falling recnetly, but overall a good business. Would recommend holding. Not good for capital appreciation, but safe business. 

Used to make smart acquisitions that increased margins significantly. Commodity business, as cheese prices move around. Prefers more capital light, less capital-intensive businesses than manufacturers. Bottom of the list on ROIC.

Has had commodity pressures lately with inflation and rising costs. Cost inputs have reduced margins, but is expecting improvements going forward. Sector has been under pressure, but sees better days ahead. Has a strong brand. 

Lots of acquisitions. Integration and supply-chain issues have largely been solved. Buy at these levels and you'll do well over the next several years. Well run. 

They overexpanded. He owned this years ago but in no rush to return to it.

If it bounces off current support in a sharp "hook up", then step in for an intermediate trade.

International. Missed earnings, and provided cautious outlook. High quality. Good management team with high level of ownership. Attractive multiple. Lots to like for the long term. Yield is 2.61%.

Bit of noise from 2021 that it did bump into. Will probably consolidate for a bit. He's always looking for breakouts, so would be good if it broke above high $30s. Rates an OK 6/10, but not a jump-on-it stock.

Largest in Canada, #3 in the US, #10 globally. Likes that Saputo family is largest shareholder. Busy making acquisitions. Historically, profitable with good ROEs. Some lesser profitable acquisitions have increased sales, but not net income as much. Synergies will eventually improve the bottom line.

Consumer products strong - will expect trend to continue.
Excellent Canadian brand that will continue to own.
Strong dividend yield.
Good long term investment. 

Inflation has pushed input costs. $34 is support, and has been trending up in the past month. Now, is a good time to enter this. But there'll be overhead resistance from existing shareholders waiting to sell to break even.

Founder led business that has grown massively.
Cheese business growing strongly.
Unsure on future of dairy products.
Good long term hold (5-10 years).
Consumer staple style business.