Maple Leaf Foods Inc T.MFI

MGMT not Performing Well

[indoubtgetout]

No matter how you slice and dice things, MFI managment not performing very well.   So, looks like this quarter EPS will be weaker thank expected and so the market is pricing that in.   In all, despite all the management spin next quarterly earnings release, management is screwing up big time.  Don't buy any MFI untile the

[indoubtgetout]

NEXT EARNINGS RELEASE which is 04NOV20.    It may well be the Michael McCain really does not care that much - MFI should be performing MUCH BETTER but it is not.....shame on Management.   WAIT - DO NOT BUY AND REVIEW AFTER NEXT EARNINGS RELEASE.  

[KR1527]

the more the SP drops though, the more attractive this gets. It's just a matter of time before we see a nice bounce up from this pullback. Long term the drivers for this story are still bullish. 

[indoubtgetout]

Sure enough, MFI opening down $1 today tells you that Mr. Market is saying management is not doing a good job these days.   Unfortunately, management compesation lacks a signifciant tie to the stock price othewise we would not see this "sleeping at the wheel" performance by management.   Here is hoping that current stock price performance is sign that management

[Analystguy]

It is discouraging to see the price plunge today. What I don't understand is that by all measures things are improving. Exception being cash flow. Cash is low because of investment primarily in the London chicken processing plant. Can you articulate what it is that prompts you to say management is sleeping at the wheel. I missed this mornings report.

[sunshine7]

Seems to me that they are trying to pay for capital investments out of earnings with ROI out 2 to 3 years. While i agree with the efficiencies that will result in a higher SP in the future, it will continue to drag down the SP until then. They could do a lease back and free up the money but then what? Buy back shares?

[PrivilegedP5000]

I think we are missing the bigger picture as are other investors; the plant based business requires an upfront investment which they are making in capex and SG and A. On the call they said demand is robust and now a 3 horse race where the leading brand has given up market share and MFC's position has remained static; this is a high value franchise that is getting little value in the share

[indoubtgetout]

MFI's expansion into the plant based food business is a huge financial commitment and RISKY!  That said, BYND can do it and get a fantastic share valuation out of it, so can MFI - they have had plenty of time to get there but it appears management incompetency is starting to show.   They need to get a grip and fast!!  TOO MUCH SYSTEMIC COMPLACENCY IN THIS COMPANY!!

[PrivilegedP5000]

Patience; they have 1.3 billion in liquidity to execute on the strategy. Directionally things are positive. What more can u ask? The Company generated 60 million in FCF for the quarter. Plenty of room.

[indoubtgetout]

FCF was better because MFI spent less on capital projects during the quarter.   Really, it all boils down to how MFI is being managed.   Michael McCain is asleep at the wheel like all of his other minions.    Mr. Market is getting impatient and justifiably so!!   If McCain and minions can't get their act together and fast then hopefully someone will bid

[PrivilegedP5000]

Yes but any worthwhile investment with the returns of plant based products requires a reasonable lead time; would you not agree? Netflix took a decade to establish, perhaps longer.

[indoubtgetout]

MFI has had plenty of lead time.  They are much behind BYND and Tyson Foods and almost all of their plant based competitors.   Plant based meat success has been first to market which BYND has already accomplished, now it is best products at the lowest prices or put another way:  CHEPAER, FASTER, BETTER.    Michael McCain and his team are noticeably complacent - they

[Analystguy]

indoubtgetout I agree. The negative market reaction was all about the poor performance of their plant protein division. What I found cautionary about the call was that McCain went out of his way to say it had nothing to do with product demaind but was simply a supply chain issue. I've heard this arguement before (see HEXO 2019Q1) only to learn later it was indeed lack of demand. There is a