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Discussion Starter #1
What are everyone thoughts on this stock?

They have been constantly growing and buying up locations with success. Most stores do not appear to be run-down like they I recall them being years ago, and on trips to Phoenix noticed a few Circle K's that seemed busy. The purchase of StatOil locations seems to have been positive. Been producing strong FCF and with good ROC, think they can continue growth and consolidation of the industry. They also appear to own the land for many locations. The margins have increased this year and sames sales growth has been positive although under 2%.

I purchased some mid last year and considering adding more funds.
 

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I've owned this for a long time. It always seems expensive. You just have to plug your nose and buy it. That said, I wouldn't buy it right now, but rather wait for the inevitable stumble. It's one of the handful of true growth companies in Canada. That list is short and select.
 

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Bringing this one back from its long slumber! Anyone holding? Can't say I feel too good about the 4% drop today and they have earnings coming out on Thursday...

Figure this is a Quebec election thing? CGI was also down about 4%...
 

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Strong day today for the ol' Couche Tard! Bouchard hands off the CEO role and they also announced a split yesterday (3:1) effective mid to end of April, in an attempt to make the stock more accessible to retail investors...
 

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Strong day today for the ol' Couche Tard! Bouchard hands off the CEO role and they also announced a split yesterday (3:1) effective mid to end of April, in an attempt to make the stock more accessible to retail investors...
It would be pretty funny if a convenience store operator let their stock go to the hundreds. Gotta keep the prices low!
 

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Discussion Starter #8
I don't plan on selling bought shares in September and January. Briefly glanced the quarterly reports and nothing fundamental seems to have changed!
 

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I was looking at this back in mid-January when it was the $80 mark. I just couldn't personally justify spending that high of a value on a convenience store business hahah... kicking myself a bit now.
 

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How do you guys feel about Couche-Tard aggressively buying companies? I mean in the past couple of years they were on a spending spree and today another deal went through sending the stock up 7%
 

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Perhaps today's move coincides with Metro (MRU) jumping nearly 9% today on M&A news. Metro may acquire a giant pharmacy chain. This is seen as positive for Metro and perhaps it's a negative for ATD.B -- just guessing here
 

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Jean Coutu owns some $2B worth of ATD.b and it presumably will be sold as part of the merger. Headwinds (at least uncertainty) for ATD.b stock for some time unless it goes in a block (s) to someone else.
 

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Alimentation is trading at the lowest multiple of forward earnings that I can recall, 13.9 according to morningstar. The tax changes in the US, where most of their business is, will increase net margins.

There are hundreds of millions of dollars in synergies from their acquisitions that have yet to be realized and they maintain an ROE of > 20% and ROIC of 12%.

I believe this is an opportunity to take advantage of investor malaise for the company's shares. One theory advanced is that the company will be in trouble once electric vehicles take over, but I believe that is an idea way, way ahead of reality.
 

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I agree it is a good price. The growth by acquisition story might be over though, and its doubtful they can obtain 15-25% earnings growth. The declining multiple might be an opportunity to take advantage of higher shareholder cash returns, perhaps. The trailing P/E is closing in on 15. I would have to look a little closer, but in general if the P/E is below 15, and the organic/cost cutting EPS growth can stay above 5%, it would be a great buy.
 

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ATD.B Alimentation Couche-Tard

I was considering adding this stock to my current portfolio (wifes TFSA) but was reading this evening after the recent earnings released today that: "The Quebec-based retailer says the two for one split of its Class A and B shares will take effect Sept. 20." Any difference in buying now or waiting until the stock split? I am thinking their is no real difference but won't hurt to ask. Thankyou.
 
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