RY 144.17 0.4529% TD 77.39 0.0517% SHOP 78.87 -1.3878% CNR 171.64 0.5625% ENB 50.09 -0.4769% CP 110.62 0.6277% BMO 128.85 -0.548% TRI 233.58 1.1563% CNQ 103.29 -0.174% BN 60.87 -0.2295% ATD 75.6 -1.447% CSU 3697.0 1.1582% BNS 65.76 -0.3485% CM 66.6 -0.5525% SU 54.21 1.1569% TRP 53.15 0.3398% NGT 58.54 -0.3405% WCN 226.5 0.4123% MFC 35.905 0.9986% BCE 46.75 -0.5954%

Inflation Report

Two Stocks from Consumer Packaged Goods Sector Amid Rising Infationary Environment – SAP and JWEL

Jan 27, 2023

Section 1: Introduction

Section 2: Company Overview

Saputo Inc. (TSX: SAP) is a global dairy processor domiciled in Canada with operations in the United States, the U.K, and other international markets. It sells cheese, cream, fluid milk, and other dairy products. The company’s retail segment brands include Saputo, Armstrong, Cheer, Cathedral City, and Frylight.

2.1 The Key Positives, Negatives, Investment Highlights, and Risks

Section3:  Financial Highlights

3.1 Key Financial Highlights

Section 4:  Key Metrics

The company has successfully managed its debt levels, hence debt to equity ratio improved in the recent quarter, i.e., Q2FY23. Further, the company’s cash conversion cycle has also been improved.

Section 5:  Stock Recommendation Summary

5.1 Valuation Methodology

 5.2 Price Performance and Stock Recommendation

5.3 One-Year Technical Price Chart

One-Year Technical Price Chart (as of January 26, 2023). Source: REFINITIV, Analysis: Kalkine Group

5.4 Technical Summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 26, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

Section1: Company Overview

Jamieson Wellness Inc. (TSX: JWEL) is engaged in the manufacturing, distributing, and marketing of branded natural health products, including vitamins, minerals, and supplements. The company operates in two segments: The Jamieson brands and The Strategic Partners.

1.1 The Key Positives, Negatives, Investment Highlights, and Risks

Section2:  Financial Highlights

2.1 Key Financial Highlights

Section 3:  Key Metrics

The company has improved its cash cycle in the recent quarters. Also, asset to equity ratio for the company has been improved however, the group  maintained Return on Equity (ROE) on a stable pace.

Section 4:  Stock Recommendation Summary

4.1 Valuation Methodology

Valuation Methodology (Illustrative): EV/ Sales based

4.2 Price Performance and Stock Recommendation

4.3 One-Year Technical Price Chart

One-Year Technical Price Chart (as of January 26, 2023). Source: REFINITIV, Analysis: Kalkine Group

4.4 Technical Summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 26, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.


Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.