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Loblaws 5 year stock history
Higher operating costs caused by re-structuring cause a 20% drop in share prices.(Mar 2006) Meanwhile CTC stock doubled over 2 ½ years and RONA tripled over 3.
Price to Earnings Ratio: A recent ratio of16.9 times earnings is an improvement of the 2005 average of 15. times but still not up into the buy mode of 2004 when investors considered the stock to be worth 18 times earnings.
Dividend Yield has always been favorable. Dividends were even paid from retained earnings even in the down year of 2006.
The price chart indicates too much of a buyer and seller reaction to high profile news reports. The stock was probably over valued in 2005. Shares traded are not that great, mainly because the Weston family holdings and employee stock plans represent the vast majority of shares outstanding. These two groups have sound reasons for not taking out profit in 2005 and for maintaining security in the future since the late 2006 and early 2007 bottom.