The Successful Investor, in the February, 2020, issue, says hold Maple Leaf Foods Inc., recently $25. The Investor said buy 17 times from February, 2005, to July, 2014, at prices ranging from $9.17 to $19. Assuming a $1,000 investment for each of the 17 buys, the $17,000 position is now worth $34,350. Maple Leaf primarily sells fresh and prepared meats under the Maple Leaf and Schneider brands. In 2017, it made a big move into the meat substitute market, buying Lightlife Foods for $190.7-million. More recently it acquired Field Roast Grain Meat, which makes grain-based vegan products, for $140.2-million. The Investor is intrigued by these efforts to ride the rise of meatless meat. It cautions, however, that Maple Leaf's investments in plant-based products will likely weigh on its earnings for the next year or so. Meanwhile, on the real meat front, the Investor says Maple Leaf should benefit from China's recent decision to end its ban on imports of Canadian pork products. This decision comes as an outbreak of swine flu is hurting China's domestic pork industry. Maple Leaf now trades at an expensive 31.7 times its likely 2020 earnings of 79 cents a share, and its dividend yield is 2.4 per cent. Buy.
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