Insiders buy as Empire goes on sale
    
    
      
    
  

  
    
        When grocery store operator Empire delivered
        its Fiscal 2020 Q2 results on December 12th,
        investors saw a basket full of lemons.
        The Q2 numbers weren’t the problem.
        EPS came in at 57 cents
        for the three months ended November 2nd,
        2019, a solid gain
        versus 38 cents a year earlier.
        It was the conference call that served up
        the bitter taste when
        CEO Michael Medline said,
        "We have seen a slight softening in
        sales at the end of the quarter
        and into the beginning of Q3.
        We think part of this could be due to
        the relative health of the Canadian economy."
        That was enough to send Empire shares
        tumbling along with other grocery stocks.
        However, investors may be
        overlooking the beef in
        the Empire earnings bag.
        For example, Empire has been delivering on
        its cost saving program, Project Sunrise.
        For fiscal 2020, it expects to achieve
        at least $250 million
        of savings from that program.
        There may also some treats
        for investors this spring if
        the company soft launches as planned
        its same-day delivery
        online store in Ontario.
        Meanwhile, trailing 12-month free
        cash flow has risen,
        up 28% versus a year earlier.
        With the stock on sale, insiders are buying.
        That suggests to us
        current sale prices may not last long.
        Get our full report via INKResearch.com or
        the Canadian Insider Club at
        CanadianInsider.com.
        This report is not
        a recommendation to buy or sell securities.