Nobody seems to feel that this stock (TSX-ATD.B) will do well for reporting year April 2009, but will recover for April 2010. Unfortunately, many Canadian companies that expand into the US in retail do not do well. The positive side there is insider buying and the company is buying up some of their shares. The other positive is the revenue rise. In terms of earnings, no one seems to feel these will improve until next year and will not show up in the annual statements until April 2010.
Some of the analysts have a Hold rating on this stock and some a Buy rating. I am holding my stock for the present as I think it will again do well in the future, but result might not come until the later part of 2009. The Hold ratings seem to be the disappointing earnings for the year and quarter ending in April 2008.
Over the last 10 years, this stock has done much better than the TSX. However, if you look at this stock in any shorter time period, it is done much worse, although not that badly over the last 5 years. This stock has been dropping since January 2007, but has a slight up tick since mid July 2008, but has gone down over the last two days.
Any purchase of this stock is a risk and the dividend income is not great. Although, if this company’s past history is any guide, this stock might again do very well. It is also close to the Graham price of $12.14.
Alimentation Couche-Tard is Canada’s leading convenience store retailer under brands such as Couche-Tard, Mac’s, Becker’s, Mike’s Mart and has US brand Circle K. The company has alliances with fast-food chains including M & M Meat Shops, Pizza Pizza, Subway and Irving Oil. They just opened up Circle K brand in Vietnam.
Its web site is www.couche-tard.com. See my spreadsheets on this company at www.spbrunner.com/stocks/atd.htm. I have reloaded my spreadsheet with estimate for earnings next year.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on web site.
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