Trend Profile - Empire Co.

  • 01 February 2011 |
  • Written by  Skot Kortje, Stock Trends Analyst
  • font size
  • Print

It's time to check-out at Empire Company.

The Stock: Empire Co. Ltd. (EMP.A-T) Recent price: $53

The Trend

The entry of U.S. retailers into the Canadian marketplace is exciting
news for consumers, but it also puts pressure on domestic retail stocks.

Target Corp.'s long-anticipated move north of the border has already
squeezed the share prices of Canadian Tire, down 7 per cent in
January, and Reitmans (Canada), which dropped 5 per cent last month.

Target stores won't open for a while, but investors know the
implications for the market share, profits and share prices of domestic
retailers.

Meanwhile,Wal-Mart Canada's plan to build more superstores has shaken
shareholders of Canadian food stores.

Loblaw Cos. Ltd. is feeling the tremors, as is Metro Inc., which has
seen its shares fall almost 10 per cent from their peak three months
ago. Investors should take note: The expiration date of last year's
grocery store bull trend has passed.

The Trade

Most of these Stock Trends columns focus on buying opportunities, but
some times it is possible to feature stocks that are pointing investors
to the exit. Empire Co., operator of Sobeys and other food retail
banners, was profiled as a "buy" here at the end of 2009 when it was in
the early stages of a new bullish trend. Its stock moved from the $46
level to eventually peak just a penny shy of $60 in late November.
However, since hitting its 52-week high Empire's stock has
underperformed the broader TSX market for all but one week. Since the
New Year, it has been in the Stock Trends Weak Bullish category,
indicating that trend-following shareholders should be ready for checkout.

 

 

The Upside

The immediate downside risk is a slip to the $50 level, a possible price
support level. But the relative weakness of food store stocks may well
persist for a longer period. Rotating to bullish trending sectors will
deliver better results.

The Downside

Although market timers like to celebrate their success, there are almost
always lost profits on the table. Those willing to risk waiting to sell
on strength might wait on a rally in the short-term, perhaps sending the
stock back above the $56 area, to regain some of the value lost since
November. 

back to top

Subscriber Testimonials

  • I've followed your recommendations since reading your columns in the Globe & Mail, and finding they published Stock Trends arrows in their financial listings. I do find them a guide to the general market and what I should be avoiding for declining chart trends.
    Has probably saved me the subscription by not rushing into hot stocks!

    Anthony D., Subscriber
  • I very much like the systematic approach to analyzing stock data, it fits my approach.

    Subscriber
  • Just thought I'd call to thank you, Skot. Stock Trends Weekly Reporter helped pay for my daughter's education!

    Peter H., Subscriber

  • There is a lot to be gained from comparing trends of how individual stocks are doing within a sector, as well as how the sector is performing relative to the broad market.

    Dudley R., Subscriber

  • I have had the good fortune to be reasonably successful and enjoy the investment process. Your process would be recommended for both experts and those who are new to investing.

    Frank I., Subscriber
  • Thank you for your excellent work and kind approach to your customers.

    Odette C., Subscriber

  • I am fascinated with your service and methodology - it is very impressive. [...] Over the years I have concluded that there are many ways to approach stock investing, but once one has chosen a path, one is better off sticking to it.

    Bob E., Subscriber

  • You have created and maintained an amazing, highly educational program and I am grateful for your part in getting our retirement funds to the good place they are.

    Karin M., Subscriber
  • I've followed a number of Stock Trends picks, and the methodology is solid.

    Doug B., Subscriber

  • I am just writing to tell you of my appreciation of your service! It makes so much sense to me. You seem to be an oasis of stability and sensibility in a stockmarket jungle.

    Adrian S., Subscriber

  • An admitted cynic, it's obviously very high praise when he says he likes StockTrends because of its "simplicity, utility, openness, [and] honesty," and in addition to having "no hidden agenda" is "understandably documented [and] historically verifiable." And, he adds, "It lets me see a lot of things without doing a lot of work." Globe and Mail

    Paul W., Subscriber

  • I am something of a momentum investor. I find Stock Trends useful as I can look at my portfolio as a “watch list” and quickly see where trends are declining in strength or reversing, so it is particularly useful as a tool in portfolio management regarding sales.

    William C., Subscriber
  • Stock Trends analysis quantifies nicely the movement of individual stocks. I’ve found that if the technicals are out of synch with fundamental analysis, it is a wake-up call to make a decision. The Stock Trends Bull/Bear Ratio is useful in identifying major market bottoms and tops. It has always presented a good buying or selling opportunity.

    Charles G., Subscriber
  • Stock Trends information is part of the base information I review before making a trade.

    Subscriber
  • I want to thank you for posting such an excellent guide to technical analysis on the web. You have provided a great service to all of us novice investors.

    Michael C., Stock Trends user
  • I find your website and research very helpful in my stock trading. I have subscribed to several related services in the past and none present their work with “just the facts” as you. Please keep up the great work so that I can continue to learn! 

    Bryan E., Subscriber
  • I use Stock Trends to help direct my stock picks. Also, following the advice of Stock Trends I have religiously used stop-loss orders and have avoided hanging on to losing stocks for emotional reasons.

    John B., Subscriber
  • Hence, anyone who had followed the "Stock Trends" line should have sold their Bre-X shares and, with the windfall, paid for a lifetime subscription to The Globe and Mail and more. Talk about return on investment!

    Muni P., Subscriber

  • Your report is an impressive, excellent tool and I have recommmended it to friends.

    Colin E., Subscriber

  • Stock Trends Weekly Reporter is an easy way to pick up equities that represent an upward trend.

    Subscriber

Subscription Plans

Subscription Plans

STWR - Monthly

$19.95

Monthly subscription plan to Stock Trends Weekly Reporter - pay your monthly subscription fees by having them automatically charged (PayPal only). Free 7-day trial period. Subscribers may cancel before the end of any subscription month.

STWR - 1 Year Prepaid Subscription

$199.00

1 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 16% off monthly rate!

STWR - 2 Year Prepaid Subscription

$299.00

2 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 37% off monthly rate!

STWR - 3 Year Prepaid Subscription

$399.00

3 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 44% off monthly rate!

Stock Trends Editorial

  • Stock Trends Inference Model: A Statistical Foundation for Smarter Investing
    Stock Trends Inference Model: A Statistical Foundation for Smarter Investing At the heart of Stock Trends is a conviction: market data is not noise, but information. For more than three decades, the Stock Trends framework has given investors a disciplined way to interpret market cycles, trend signals, and momentum patterns. The Stock Trends Inference Model (ST-IM) is the natural extension of this approach, embedding rigorous statistical reasoning into the reports available for every listed stock…
    Read more...
  • Technology Sector Split: Hardware & Chips vs. Software – A Deep Dive with Stock Trends
    Technology Sector Split: Hardware & Chips vs. Software – A Deep Dive with Stock Trends The uncertain interest rate environment is evident in a number of sectors, and the stock market is always reflecting both the trend of the cost of capital and the anticipation of changes in it. The technology sector is especially sensitive to interest rates and generally feeds off the risk-on investor appetite supported by lower interest rates or expectations of relatively lower rates. But all technology…
    Read more...
  • Resource rotation remains strong
    Resource rotation remains strong The summer season is coming to a close. It is sometimes a sleepy market season because investor attention is elsewhere. However, the market has provided us with some definite messaging over the past few months. The themes of rotation and building strength in resources and energy stocks, notably fueled by an AI transformation across the broader economy, are key highlights that investors should pay attention…
    Read more...
View all Stock Trends Editorials
 
 

Subscription Plans

STWR - Monthly

$19.95/Month

Monthly subscription plan to Stock Trends Weekly Reporter - pay your monthly subscription fees by having them automatically charged (PayPal only). Free 7-day trial period. Subscribers may cancel before the end of any subscription month.

STWR - 1 Year Prepaid Subscription

$199/Year

1 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 16% off monthly rate!

STWR - 2 Year Prepaid Subscription

$299/2 Years

2 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 37% off monthly rate!

STWR - 3 Year Prepaid Subscription

$399/3 Years

3 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 44% off monthly rate!