SADIF Analytics Assigns Negative Long-Term Outlook Rating to Maple Leaf Foods
Released on: October 28, 2008, 9:10 am
Press Release Author: SADIF-Investment Analytics SA
Industry: Financial
Press Release Summary: SADIF-Investment Analytics SA has applied its StockMarks(tm) stock-rating system to Maple Leaf Foods and produced a research report, rating the company's attractiveness to long-term investors.
Press Release Body: Mira, Portugal - October 28, 2008 - SADIF Investment Analytics SA, today announced the release of a new equity research report covering Maple Leaf Foods (MFI). The report utilizes SADIF's powerful StockMarks(tm) stock rating system and is required reading for any current or potential Maple Leaf Foods investor.
Report Summary: Major Canadian food processing company Maple Leaf Foods came into the spotlight in the third quarter of 2008 due to listeria bacteria contamination at its Bartor Road plant. The contamination caused Maple Leaf to temporarily shut down production at the plant on August 20th and recall all 191 products manufactured at the location. The financial effects of the contamination will clearly be a focal point of the company's quarterly results to be released October 29th. At a time where investors are shifting their share holdings into shares of low-cost food manufacturers such as Maple Leaf, the company has seen a decline in its share price of almost thirty-three percent since it closed the Bartor Road plant. This compares to a thirty-six percent drop in the S&P/TSX composite index. While beating the market, Maple Leaf shares have plunged relative to other food producers such as Saputo Inc. Saputo experienced a 7% decline over the same period. Have investors over-reacted to news of the listeria outbreak and undervalued the shares? Given the company's poor performance during the first-half of 2008 due to rising input costs and the expected drop in earnings to be announced October 29th, any investment decision should focus on the company's long-term performance. We can assess Maple Leaf's underlying long-term fundamentals through the use of the StockMarks framework. Maple Leaf currently has an overall Long-term investment-attractiveness rating (Total StockMark or SMT) of 47, rating slightly below the Canadian market average. This rating ranks the company ninth among ten of its closest peers, selected on the basis of both similarity of business and market positioning factors such as size.
The complete report breaks down the Total StockMark into its three components - Business, Management and Price, performing a thorough analysis of Maple Leaf Foods for long-term investors.
A summary of the StockMarks(tm) ratings for Maple Leaf Foods is available here: http://sadifanalytics.com/stockmarks/company.php?ticker=MFI&cod_country=18
The report has been distributed to Reuters, and forwarded to Yahoo Finance and FT.com. It is available under 'Analyst Reports' from these websites or directly from SADIF-Investment Analytics SA at http://sadifanalytics.com/stockmarks/article/hist_article.php?cod_country=18
About SADIF-Investment Analytics SA SADIF-Investment Analytics SA is an independent investment research company covering sixteen different markets and over 12,000 companies. Our StockMarks(tm) system is based on proven investment principles and is designed to drive long-term shareholder returns.
Web Site: http://www.sadifanalytics.com
Contact Details: Company: SADIF-Investment Analytics SA Address: AIBAP, Rua do Matadouro, 3070-436 Mira, Portugal Phone Number: (+351) 231849038 Website: www.sadifanalytics.com Email: press@sadifanalytics.com