The Successful Investor Hotline – Friday, December 19, 2008

Article Excerpt

MAPLE LEAF FOODS INC. $10.75, Toronto symbol MFI, has agreed to settle several class action lawsuits stemming from this summer’s listeria outbreak at its Toronto meat-processing plant. The settlement will cost the company between $25 million and $27 million. To put that in perspective, Maple Leaf lost $12.9 million or $0.10 a share in the three months ended September 30, 2008, mainly due to the costs to recall the contaminated products and improve food safety at all of its plants. If you disregard these costs, Maple Leaf would have earned $0.13 a share in the third quarter. Maple Leaf’s stock is up nearly 65% since it fell to $6.54 in October, 2008, thanks to its quick response to this crisis. The settlement of these class-action lawsuits will now let Maple Leaf focus on rebuilding consumer confidence in its products. Maple Leaf Foods is a buy. BANK OF MONTREAL $30.05, Toronto symbol BMO, plans to sell up to $1.1 billion of new common shares…