November 12, 2018
EXITED LOBLAWS (L-T) AT $58.40 AND GEORGE WESTON AT $93.59
Loblaw Companies Ltd is a food retailer. The Company operates through two segments: Retail and Financial Services. The Company’s Retail segment consists of corporate and franchise-owned retail food and Associate-owned drug stores. The Company’s Financial Services segment provides credit card services, loyalty programs, insurance brokerage services, personal banking services, gift cards and telecommunication services.
We first added a ½ position of Loblaws in June 2017 at $72.88 and then an additional ½ position at $66.86 in January 2018 (average cost $69.87). Then in October 2018, Loblaws announced the spin-off of Choice Properties shares in exchange for 0.135 George Weston. shares ($93.41) which we sold at $93.59. This lowered our cost by $12.63 making our adjusted cost $57.24 (excluding the dividend of $1.18 that we collected). We opted to sell the shares because the 2019 Loblaws earnings (est. $4.60) are expected to be lower than 2018 (est. $4.67) which will likely cause the shares to trade sideways. Our preference is to be liquid and look for better opportunities.