Metro (Symbol-MRU)

[AltaRed]

What is MRU.A and what are the metrics and the reason for your interest?

[ABCAC]

It seems like a reasonable buy, walmart does pose a problem.

http://www.financialwebring.org/forum/v ... ebb9c0a72a

[jay]

thanks for the reply and the link. I tried to find an existing thread on MRU.A on FWF but couldn't. I should try harder next time.

Alta, I have never owned a food retailer in my portfolio and I thought Metro (MRU.A) is interesting. I personally shop at Loeb and and my friends in Montreal love the Metro label. I also love A&P and Sobeys. Not to mention its current valuation (PE < 10, decent EPS and ROE growth). And they seem to have maintained and raised their dividends for many years (mind you at a slow growth).

I had to make a choice between Metro, Empire and Loblaw and I thought Metro is the most attractive.

yielder: I don't think Metro competes with Walmart for the same customer base. Well at least not as much as Loblaw tries to compete with Walmart.

Discretion: I own both Metro and Walmart.

[jay]

This stock has been tanking on no news. Does anyone have any idea why?

thanks

[Mike Schimek]

From their latest news release;

"A more intense competitive environment as well as the training and learning curve associated with our new information systems in Ontario and our new Food Services warehouse weakened our results. We expect that the issues related to our information systems in Ontario and our Food Services warehouse will be behind us in the next few months, and are confident that our results will improve," stated Pierre H. Lessard, President and Chief Executive Officer.

- It sounds like Walmart is beating them up. I wouldn't buy that that blah blah about new information systems affecting their sales. Their sales and margins will likely continue to come under pressure. Could be the beginning of what happened to Loblaw's to some extent.

I don't know much about consumer staples stocks personally, that's just my first impression above.

Mike

[bindexit]

I traded in and out of this in March 2008 for a 15% gain. The sale price was $24 range. I just looked today and ouch that hurts.

It's $36 range!!!!! Congratulations to those holders in March 2008.
.
Recession fears have really pumped up this one. I'd be more inclined to invest in our energy sector and be patient than go here soon

[Taggart]

I don't own Metro, but it's on my watch list.

-----------------------------------------------------

Metro shows limited upside

Posted: April 09, 2009, 1:28 PM by David Pett

Grocery company Metro Inc. is showing a solid return on assets, but there is limited room for upside growth with the stock, according to Vishal Shreedhar, analyst at UBS Investment Research.

[Peculiar_Investor]

Does anyone know where I can find the prospectus for Metro 4.98% 15-Oct-2015? I've checked Metro's filings on SEDAR but there doesn't appear to be any prospectus' filed. Are they filed in Quebec? and if so, can the filings be found online?

[Peculiar_Investor]

Has anyone seen any news that would be driving Metro's share price today? Up 7% as I type this on 4x the normal daily volume, in 1/2 the day.

Disclosure: Happy, 'cause I'm long MRU.a, own their bonds as well.

Edit: Added volume information.

[deaddog]

Has anyone seen any news that would be driving Metro's share price today? Up 7% as I type this on 4x the normal daily volume, in 1/2 the day.

Disclosure: Happy, 'cause I'm long MRU.a, own their bonds as well.

Edit: Added volume information.

It along with CP ENB & IMG were added to RBCs Focus List.

[Peculiar_Investor]

Has anyone seen any news that would be driving Metro's share price today? Up 7% as I type this on 4x the normal daily volume, in 1/2 the day.

Disclosure: Happy, 'cause I'm long MRU.a, own their bonds as well.

Edit: Added volume information.

It along with CP ENB & IMG were added to RBCs Focus List.

OK thanks, that would probably have a positive impact, but I'm surprised at how much.

[FinEcon]

Does anyone know where I can find the prospectus for Metro 4.98% 15-Oct-2015? I've checked Metro's filings on SEDAR but there doesn't appear to be any prospectus' filed. Are they filed in Quebec? and if so, can the filings be found online?

Can I ask why would you want those bonds. The bond after tax return on the 'income stream' is likely the same, or damn near the same, as the common. Only real differences being
1) you are marginally less likely to get stiffed on the income stream due to your place in line
2) you are at least guaranteed to get par on 1 specific date in the future

Do you think the tradeoff for retained earnings (ie increasing per share equity) is worth it? Not picking on you, I'm just trying to get a sense of the rationale behind FI investment in a quality comapny in an stable, yet not regulated, industry. What's the deal? Can you pick them up at a discount? If not, what am I missing? (no jokes about two bricks, etc, etc )

[Peculiar_Investor]

Does anyone know where I can find the prospectus for Metro 4.98% 15-Oct-2015? I've checked Metro's filings on SEDAR but there doesn't appear to be any prospectus' filed. Are they filed in Quebec? and if so, can the filings be found online?

Can I ask why would you want those bonds. The bond after tax return on the 'income stream' is likely the same, or damn near the same, as the common. Only real differences being
1) you are marginally less likely to get stiffed on the income stream due to your place in line
2) you are at least guaranteed to get par on 1 specific date in the future

Do you think the tradeoff for retained earnings (ie increasing per share equity) is worth it? Not picking on you, I'm just trying to get a sense of the rationale behind FI investment in a quality comapny in an stable, yet not regulated, industry. What's the deal? Can you pick them up at a discount? If not, what am I missing? (no jokes about two bricks, etc, etc )

The short answer is diversification as part of a bond ladder.

The long answer is that over this part year I've been making more of an effort to understand fixed income investing beyond just buying the index, i.e. XBB. We've also been making an adjustment in our asset allocation. We decided to increase the fixed income portion as part of an investment strategy review that I've been undertaking. We're still in the accumulation phase (late 40's) but are now starting to see the "retirement" banner appearing way off in the distance. I'm a stock picker and have always felt that I didn't have the ability to add value in fixed income, thus the strategy has been to buy the fixed income index in our registered plans. XBB still represents about 70% of our fixed income allocation, but I've been working on the first steps of a DIY strategy, which was creating a ladder of bonds in the 3-10 year maturity range. The Metro bonds were actually one of my earlier purchases, back in June. The specific reason for this purchase was to fill the 2015 maturity slot. The Metro bonds were the highest yielding investment quality bond I could find at TDW. I must admit I bought solely based on yield and having finally gotten around to attempting to read the prospectus. I know that is the wrong order, but I'm still learning.

[AltaRed]

Just be cognizant that corporate bonds can throw a curve ball. The recent saga with Bell brings home the trials and tribulations of a blue chip potentially going junk! Private equity predators will be back in a big way once market confidence is back.

[Peculiar_Investor]

Kudos to Metro's management for some good governance. METRO INC. | Metro to simplify its share capital in order to have a single class of voting and participating shares

Under this proposal, all the Class B multiple voting shares, which are held solely by Metro affiliated retailers, will be converted into Class A Subordinate Shares (carrying one vote per share) on a one for one basis. The subordinate shares would then be redesignated as Common Shares and become the only voting and participating shares of the Corporation. This reorganization will be submitted for shareholder approval at the next annual general and special meeting of shareholders, on January 31, 2012.

I wonder if this will kickstart some other Canadian companies with dual-class share structures to reconsider their structure and perhaps move to a single class of shares.

[Peculiar_Investor]

Shareowners approve , from Metro,

At the Annual General Meeting on January 31, 2012, shareholders approved the following share capital
reorganization:
- each issued and outstanding Class B Share carrying 16 votes per share is converted into one single vote Class A Subordinate Share;
- the Class B Shares, along with the rights, privileges, restrictions and conditions attached thereto, are eliminated;
- the Class A Subordinate Shares are redesignated as “Common Shares” and shall constitute the Corporation’s sole class of equity shares carrying one vote per share;
- First Preferred Shares are redesignated as “Preferred Shares”.

There was no date given as when it takes effect, but I did note this morning that my stock quote download from MSN failed on ca:MRU.a and works for ca:MRU, so I'm guessing it takes effect today.

Yahoo and GlobeInvestor not yet updated, but I suspect that will happen before the market opens. Perhaps now Yahoo will keep historical data for Metro, making charting possible.

Added: Confirmed, METRO INC. | METRO announces ticker symbol change

[Peculiar_Investor]

I'm not sure it is ever a good thing when the CFO resigns, METRO INC. | Resignation of the Chief Financial Officer of METRO INC., particularly when it comes out of left field. We'll see you the market reacts tomorrow.

Disclosure: Long MRU

[Peculiar_Investor]

TD Waterhouse sent out a new offering notice on Alimentation Couche-Tard that got me wondering why? Found the answer, Metro Enters Into an Agreement to Sell a Portion of Its Alimentation Couche-Tard Holding

block trade bought-deal, a total of 10,000,000 Class B Subordinate Voting Shares of Alimentation Couche-Tard Inc. (TSX:ATD.B) at a price per share of $47.90 (the "Offer Price"), for total gross proceeds of $479,000,000, and representing approximately 7.2% of the outstanding Class B Subordinate Voting Shares of Alimentation Couche-Tard

<snip>

This purchase and sale transaction allows Metro to monetize approximately 48.2% of its aggregate participation in Alimentation Couche-Tard shares, valued at approximately $1 billion prior to the transaction based on the Offer Price. Following this sale of shares, Metro remains the beneficial owner of 10,742,348 Class A Multiple Voting Shares, representing 21.8% of all Class A Multiple Voting Shares currently issued and outstanding, an economic interest of approximately 5.7% and a voting interest of approximately 17.0%.

Disclosure: Long both MRU and ATD.b and no plans to take any action. Still like both companies as core holdings.

[Shakespeare]

Don't follow either stock, but secondary sales are generally done at prices good for the seller, not the buyer.