ADDED HALF POSITION IN LOBLAW AT $72.88 (L-T)

Loblaw operates through three segments: Retail, Financial Services and Choice Properties. Retail consists of corporate and franchise-owned retail food and Associate-owned drug stores. Financial Services provides credit card services, insurance, personal banking services, and telecommunication services. Choice Properties owns, develops and manages income-producing commercial properties across Canada. The Company also has the following brand names: President's Choice, PC, no name, PC Organics and Blue Menu.

JUSTIFICATION Loblaws weakened recently with the general decline of traditional retailers due to the increasing market share of online retailers such as Amazon. We view the current weakness as a buying opportunity because Canadian grocers are much less likely to be threatened by online retailing due to the low population density in Canada. The Purple Chips 12 – 18 month target is $82.00.