skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Could the following analyst be asking a valid question or is his POV just a ploy in the old game of getting one to trade?

"Alimentation Couche-Tard Inc.’s share price has soared 60 per cent in the last year thanks to factors such as falling gasoline prices, a rising U.S. dollar, low interest rates and access to credit. But how long can the highs last?

“Seven years ago, a reverse scenario prevailed and we couldn’t convince enough investors to buy the stock,” David Hartley of Credit Suisse said in a note to clients on Monday. “Could we be at reverse point of inflection now?”

Also, just how important to ATD's profitability are gas margins compared to the rest of the business?

Full story is here: http://business.financialpost.com/investing/trading-desk/how-long-can-the-highs-last-for-alimentation-couche-tard-inc-shares

Thanks, J.
Read Answer Asked by Jeff on November 25, 2015
Q: Over the past few days, I have heard several talking heads on BNN (which I watch infrequently) disparage the Consumer Staples sector and ATD specifically, saying the valuations are too high. Which metrics are they using? You haven't rated ATD yet so I haven't found the answer on this site.
I like watching the technicals (but don't react to them). Neither the sector as a whole nor ATD is overbought and in fact the sector is closer to oversold. And, ATD has been on an unbroken uptrend since July of 2009 - but is that a bad thing?
Read Answer Asked by Fred on October 29, 2015
Q: Hi Peter and Team,

I saw this article on National Post that could be driving down ATD.B. Sounds like Credit Suisse analysts are saying that its price to cash flow ratio is inflated and that it's driving a bubble in consumer stocks. What are your thoughts on this? I have a fairly large position (~8%) in ATD.B and don't want to get caught in a sector falling out of favor (like what just happened in biotech).

Jordan
Read Answer Asked by Jordan on October 28, 2015
Q: I am looking at adding to ATD.B. LTD seems to have come down nicely over the past year and the number of shares outstanding seems fairly stable. I am wondering about growth. Morningstar shows $1.89 for 2016 up 8 cents from 2015. What kind of growth does your analysis show? As an NR stock do you have plans to do a report at sometime or is $26b market cap too large?
Many thanks
Mike
Read Answer Asked by michael on May 11, 2015
Q: To round out recent comments on ATD.B (Alimentation Couche-Tard), here are excerpts from a couple of recent articles:

In a research note, senior analyst Bonnie Herzog said she believes positive trends in the convenience-store sphere will continue as “the industry is embarking on a new era of sophistication and growth.”

As the industry continues to grow, it remains fragmented and larger chains continue to get stronger. Strong fuel margins, despite soft gallon trends, will help to drive future growth across the industry, the report said.

Full article here: http://www.cspnet.com/industry-news-analysis/corporate-news/articles/analyst-bullish-state-convenience

Like all large convenience-store chains—especially those that have grown excessively through acquisition— The Pantry lays claim to some “premium” locations and others “in worse shape than average.” Therein lies the biggest challenge and greatest opportunity for new owner Alimentation Couche-Tard as it begins to integrate The Pantry’s Kangaroo Express c-stores into its business, according to a new report from a convenience-store analyst.

Full article at http://www.cspnet.com/industry-news-analysis/corporate-news/articles/challenges-opportunities-integrating-pantry
Read Answer Asked by Jerry on May 04, 2015
Q: Hi Peter,
We know that you are positive on ATD.B, and would like to know your opinion on Metro (MRU) Scotia Mcleod upgraded the stock today. We are retired and are looking for safe stable company that we do not have to watch everyday (sleep at night stock)and also do you see Metro having growth and dividend increases over the years.

Thank you, Charlie
Read Answer Asked by CHARLES LA on April 24, 2015
Q: First off, like so many other members I would like to thank you for your continued excellent service and the addition of your Growth Portfolio.

My question concerns my RESP. I currently have 3 postions in equal weights namely, Pembina, McDonald Detwieller and WSP Global. I have concerns regarding Pembina going forward as I am beginning to draw down on this account. Would you endorse a switch to ATD.B , stand pat or make any other recommendation?.

Thank you
Marty
Read Answer Asked by Marty on April 02, 2015
Q: For people who own or are considering Alimentation ATD.B, this is an informative and interesting website: http://www.cspnet.com/. Enter "Alimentation" into the search box to see news and insights. The site covers every aspect of the convenience store business. It adds new dimensions of understanding to the world in which ATD.B operates and expands. How can you not like a website that devotes a major section to Snacks & Candy?
Read Answer Asked by Jerry on April 02, 2015
Q: Hi,

Two quick questions on recent additions to the Balanced Equity portfolio:

1 - Do you think Alimentation Couche Tard may be able to acquire some retail locations in Canada or the U.S. from an integrated oil player that is looking to raise some cash? I heard that Suncor may be looking to sell Petro Canada? Not sure if its just speculation though.

2 - For Progressive Waste, the stock is near a 52 week high. Do you see growth in the U.S. market going forward or is this a play on lower oil prices improving margins and driving profit growth?

Thanks,
Jason
Read Answer Asked by Jason on April 02, 2015
Q: It seems that noses are out of joint in the recent Couche-Tard acquisition of The Pantry. With an investigation being launched against The Pantry directors for an alleged breach of fiduciary trust, what would be the implications to ATD? Would/should ATD walk away from this deal, or would/should it simply raise its share price, if it is found that they did indeed "underpay" for Pantry shares. Your analysis of this situation would be appreciated. Thanks, as always.
Read Answer Asked by Sylvia on December 22, 2014