Empire Co. Ltd. (Symbol-EMP.A)

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scomac
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Empire Co. Ltd. (Symbol-EMP.A)

Post by scomac » 26 Apr 2007 15:53

Empire Company and Sobeys announce going private transaction.

Any lucky Sobey's shareholders out there? I own the parent, not the offspring. Still a nice pop of 7% on EMP.A as a result of taking out the minority SBY shareholders.
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Post by bubbalouie » 26 Apr 2007 16:51

:oops:
you could always buy ep.un before the parents do
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Post by Jo Anne » 26 Apr 2007 18:38

It's nice that I bought SBY in my dad's account a month or so ago. He'll be pleased. :)

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Post by ssidesai » 26 Apr 2007 21:08

I had sobeys in three separate accounts, RESP, RRSP and investment.
Really happy

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Post by Pickles » 26 Apr 2007 21:29

Considering Sobey's since last August; finally took the plunge on April 4th. Whoopee! 57% gain in 22 days (plus divvie to come on April 30th).

Almost makes me feel better about the Bell shares going down $2 in the past week....
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Post by esau » 26 Apr 2007 22:59

It jumped to fourth position behind CAE , AGRIUM and C P RAIL

very happy, could kiss someone..

E:o)

esau

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Post by scomac » 27 Apr 2007 07:24

esau wrote:It jumped to fourth position behind CAE , AGRIUM and C P RAIL
Not for long...... ;)

So how's my old friend esau doing anyway? It's been so long since we've heard from you I was beginning to think that you were lost. :lol:
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830

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Post by mr. pink » 27 Apr 2007 10:49

The grocery business is capital intensive, lacks quality management, and is caught in a never-ending spiral of price cutting. Empire already owns much of this company, so how does going private with the same owners and EXISTING management add so much value--I just don't see it.

If I were a shareholder (I used to be) I would be thrilled that someone is willing to pay such a high premium.

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Post by esau » 27 Apr 2007 14:32

scomac wrote:
Not for long...... ;)

So how's my old friend esau doing anyway? It's been so long since we've heard from you I was beginning to think that you were lost. :lol:

I'm doing well scomac thanxs, I read here often .

Sorry to loose a good business...happy with the unexpected quick gain....Kiss Kiss

where to re-deploy ?

ps. out with over 300% incl. div. FAL

E:o)

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Post by scomac » 27 Apr 2007 16:47

esau wrote:
Sorry to loose a good business...happy with the unexpected quick gain....Kiss Kiss

where to re-deploy ?
Well that's always the question, eh? Call it the bittersweet side of a buy-out.
ps. out with over 300% incl. div. FAL
Sure...rub it in. :wink:
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830

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Re: EMP.A - Empire Co. Ltd.

Post by yielder » 28 Apr 2007 09:09

scomac wrote:Still a nice pop of 7% on EMP.A as a result of taking out the minority SBY shareholders.
The obviously haven't thought about how this is going to be financed. :roll: I can't figure Empire out on this one. They already control SBY so why add debt or equity dilution for the remainder? Adding SBY's LT debt to EMP.A's LT debt increases EMP.A's debt by 40%. If the deal is financed by debt, EMP.A's balance sheet is going to be a great deal weaker. Aside from the debt, they'll add a fair bit of goodwill because SBY's BV is around $29-30. Between the debt and goodwill, they'll start to look more like L.
DBRS wrote:DBRS has placed the short and long-term ratings of Empire Company Limited (Empire or the Company) Under Review with Negative Implications. This action follows the joint announcement by Empire and Sobeys Inc. (Sobeys) that they have entered into an agreement pursuant to which Empire will acquire all of the outstanding common shares of Sobeys that it does not own for approximately $1.06 billion. Empire currently owns 72.1% of the issued and outstanding shares of Sobeys.

The all-cash financing of the transaction will result in a significant increase in net debt for the consolidated group. Although the Company has stated that the Empire/Sobeys business strategy is not expected to change in a meaningful way, substantially higher debt will have a significant effect on financial leverage and the overall credit risk profile of the consolidated group.

DBRS will focus on the details of the financing plan along with an update of the financial policies and business strategies of Empire/Sobeys on a go-forward basis to determine the credit impact on the respective entities and resolve the under review status.
Empire bonds are currently rated BBB which is one notch above junk bond status.

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Post by brad911 » 07 Apr 2009 18:20

Now here is a company who knows when to take advantage of the market and raise equity

Not too bad for dilution as I'm much more content to have it occur at a high than near a 52-week low. I won't be participating as I've recently trimmed my position due to share appreciation, but continue to hold.

The proceeds, "will be used to reduce indebtedness and for general corporate purposes."
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Post by Taggart » 08 Apr 2009 13:13

Empire share sale slices 10% off price

Paying off debt always good, except for shareholders

Barry Critchley, Financial Post Published: Wednesday, April 08, 2009

If any issuer wants lessons in how to knock 10% off its share price in one day, then call Empire Co. Ltd. the Stellarton N. B.-based company whose core businesses includes food retailing and related real estate.

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Post by brad911 » 08 Apr 2009 13:45

As a shareholder...

Do I want management to raise equity when it needs to at a substantial discount to bookvalue?

or

Do I want management to raise equity when it can at a premium to bookvalue?

MFC & EMP.A are two completely different companies who raised equity for two entirely different reasons. This isn't a 7-10% dilution for Empire shareholders and the company has done very well to position themselves for this economic environment. Now maybe they know something we don't, but I see it as a prudent decision for the company considering they haven't raised equity in sometime, still have debt to pay off from the Sobey's purchase and could use the additional equity to gain market share.
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Re: Empire Co. Ltd. (Symbol-EMP.A)

Post by Taggart » 17 Jun 2013 14:46

With the jump in Empire shares this past few days since the Safeway Canada buyout, now I know why I diversify widely amongst Canadian dividend growth shares. I never know which are going to climb and which are going to do the opposite.


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Re: Empire Co. Ltd. (Symbol-EMP.A)

Post by Pickles » 17 Jun 2013 17:13

Taggart wrote:With the jump in Empire shares this past few days since the Safeway Canada buyout, now I know why I diversify widely amongst Canadian dividend growth shares. I never know which are going to climb and which are going to do the opposite.
Good point. I like Empire because it's a NS company that has staged its growth prudently and skillfully. It went the REIT route long ago, and has a manageable number of grocery chains, unlike Loblaws which has so many. The flyers I get for Loblaws, Valumart and Superstore all have the same design and the same products but different prices!

Sobeys took a stand against selling the farmed salmon that had been exposed to the virus that has killed thousands of salmon. Permitting that fish to be sold for public consumption was a political move by the fisheries inspectors. Loblaws won't even tell people which salmon they sell is from the problematic farms and which comes from untainted sources.

Galen is too busy having coffee with housewives to manage a company. Four years later, the company's inventory system still isn't fixed.
Regards,
Pickles

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Re: Empire Co. Ltd. (Symbol-EMP.A)

Post by deaddog » 19 Jun 2013 10:54

Taggart wrote:With the jump in Empire shares this past few days since the Safeway Canada buyout, now I know why I diversify widely amongst Canadian dividend growth shares. I never know which are going to climb and which are going to do the opposite.
So what you are saying is that you have to buy everything in case you miss a move. :wink:
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Re: Empire Co. Ltd. (Symbol-EMP.A)

Post by Taggart » 19 Jun 2013 12:52

deaddog wrote:
Taggart wrote:With the jump in Empire shares this past few days since the Safeway Canada buyout, now I know why I diversify widely amongst Canadian dividend growth shares. I never know which are going to climb and which are going to do the opposite.
So what you are saying is that you have to buy everything in case you miss a move. :wink:
No, but it's an extra perk I didn't foresee when I kept expanding the number of Canadian dividend growth stocks in the portfolio. Also, as a bonus I get more stocks that increase their dividends in the portfolio. Must be near twenty separate increases so far this calendar year, and we're not quite half way there yet. I do a lot of high fives. :lol:

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Re: Empire Co. Ltd. (Symbol-EMP.A)

Post by Taggart » 01 Oct 2015 14:03

Almost took a fit today as I'm updating the accounts for month end, and noticed we'd lost around $10,000 on Empire since I last checked a month ago. How do I explain to my wife that I'd lost that amount at a supermarket? Obviously, the online broker hasn't updated the accounts to reflect Empire's latest stock split. I forgot all about the split from their previous news release.

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Re: Empire Co. Ltd. (Symbol-EMP.A)

Post by 2 yen » 01 Oct 2015 17:19

Taggart wrote:Almost took a fit today as I'm updating the accounts for month end, and noticed we'd lost around $10,000 on Empire since I last checked a month ago. How do I explain to my wife that I'd lost that amount at a supermarket? Obviously, the online broker hasn't updated the accounts to reflect Empire's latest stock split. I forgot all about the split from their previous news release.
Missed the boat on this stock (like Dollarama). Sobey's is a money making machine - we should know. Many, many products are smaller with higher prices recently! And they treat their employees poorly, especially part-timers.

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Re: Empire Co. Ltd. (Symbol-EMP.A)

Post by Insomniac » 01 Oct 2015 17:40

2 yen wrote: Missed the boat on this stock (like Dollarama). Sobey's is a money making machine - we should know. Many, many products are smaller with higher prices recently! And they treat their employees poorly, especially part-timers.

2 yen
Yes, the closest grocery store to us is Thrifty's. After Sobey's took over, product quality and service took a dive. We don't shop there anymore if we can avoid it.

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Re: Empire Co. Ltd. (Symbol-EMP.A)

Post by jay » 10 Mar 2016 23:33

Dropped -14.72% today due to bad earnings (Write-off of the SafeWay acquisition, exposure to Alberta ...). I believe this is the worst single day drop ever (since 95). Drops of this magnitude take a few days to settle. I am buyer below $20, ideally at $18, which makes the divvy > 2%.

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