Maple Leaf Foods Inc. (MFI.TO) outlook?

There is no guarantees that a bounce is imminent and a stock could remain in oversold for a while. That being said, if you look at MFI's history - it does have a tendency of bouncing. See attached image.

MFI is very low on the RSI indicator ... should we be considering this as a rebound in the short - intermediate term, or could MFI ride the oversold position for a significant time frame?

HI there,

MFI is an actual corporation - not an ETF. It is one that we have been looking at. The company's share price is under pressure as the pandemic has impacted the company in a meaningful way. Outside of increase costs, demand from the tourism/restaurant/commercial industries has been impacted in a meaningful way. We are looking at this one as a potential rebound candidate.

It is Canadian Dividend Aristocrat with a six-year dividend growth streak and a decent yield (2.45%). Over the course of its streak it has grown the dividend by double-digits and on a forward basis, the dividend accounts for only 50% of earnings.

The other aspect we like - it is diversifying into plant based protein alternatives. There are many high-flying plant-based companies doing quite well in this market and MFI is not getting recognition for its moves in this space. I like the company, but do expect volatility so long as this pandemic persists.

Mat

HI there,

MFI is an actual corporation - not an ETF. It is one that we have been looking at. The company's share price is under pressure as the pandemic has impacted the company in a meaningful way. Outside of increase costs, demand from the tourism/restaurant/commercial industries has been impacted in a meaningful way. We are looking at this one as a potential rebound candidate.

It is Canadian Dividend Aristocrat with a six-year dividend growth streak and a decent yield (2.45%). Over the course of its streak it has grown the dividend by double-digits and on a forward basis, the dividend accounts for only 50% of earnings.

The other aspect we like - it is diversifying into plant based protein alternatives. There are many high-flying plant-based companies doing quite well in this market and MFI is not getting recognition for its moves in this space. I like the company, but do expect volatility so long as this pandemic persists.

Mat