Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Maple Leaf Foods Looks Like A Compelling Buy Amidst Its Restructuring

Maple Leaf Foods [(OTCPK:MLFNF)(MFI.TO)] ("Maple Leaf" or "MLF" or "the company") is an undervalued Canadian food producer, comprised of a protein business and a bakery business. While the Maple Leaf business couldn't be more bland, the restructuring currently underway at Maple Leaf is more intriguing and causing the investment opportunity in the shares. In my view, the transformation communicated to the market will help unlock value in the shares in the years to come as the restructuring initiatives take hold, and Maple Leaf becomes less of a turnaround story to avoid, but more of a margin expansion story to behold.

Investing in turnarounds is notoriously difficult to get right. Because Maple Leaf operates an easy-to-understand and defensive business,...

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