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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (4894)	8/31/1998 7:12:00 AM
From: Demetre Deliyanakis	Read Replies (1) \| Respond to of 78618

Paul, thanks for your comments. Molson will benefit from its purchase of 40% of its brewery from Foster's. The company now has 100% control of Molson breweries. Molson controls about 50% of the Canadian beer market. They also export beer to the U.S.through an agreement with Miller. Miller used to own 20% of Molson Breweries. Bank of Montreal (BMO ) owns the Harris Bank of Chicago. They get about 50% of their profits from the U.S. Currently, 4 of Canada's six major banks are involved in mergers. Bank of Montreal plans to merge with the Royal Bank. The Canadian Imperial Bank of Commerce plans to merge with the Toronto Dominion Bank.. The mergers are subject to the approval of the Canadian government. The consensus view is that they will be allowed, but the government will put restrictions on the number of branch closures and demand that service fees be frozen for two years etc. The Canadian government will also allow more foreign banks to compete in Canada. Overall the mergers are positive for shareholders. My favourite banks from an investment point of view are TD and CIBC. They do trade on the NYSE. I am still waiting before I jump in. My research reports on the banks are not completed yet. I will post them when I am finished. I also value companies relative to their past performance. For example with Wendy's , It is trading at a low P/E relative to its past P/E ratios. Also it is trading at a low P/E relative to its growth rate. MO is a steal. The food division is worth around $25. When you buy MO you are getting the tobacco operations at a very good discount. MO may benefit from the emerging market crisis by buying up government run tobacco companies in these areas. Foreign governments which are desperate for investment may be willing to sell part or all of their tobacco companies to MO. Regards Demetre