Loblaws - the struggle continues

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It seems the Canadian grocery retailer is still having troubles with restructuring shocking investors with a more than expected plunge in profits tumbling the company's stock down to level's not seen since 2000. Is there still hope for Loblaws? Investors were disappointed sending the stock down over 12% in one day of trading last week. A lot of my peers have purchased Loblaws stock over the last few years when it fell out of favour. I have one piece of advice for anyone out there looking at Loblaws stock - don't try to catch a falling knife. It'll take several quarters before they turn around. This will be a slow one. Don't expect any quick miracles any time soon.

It looks like their strategy of lowering prices isn't working too well. While they have weekend only sales lately to drive store sales, what I observed is that a lot of customers were just buying the loss leaders and avoiding other purchases. Definitely not a good sign.

I would keep my eyes on this one. Should the stock dip below $30, I will seriously consider biting but with a lot of caution in my eyes!!

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