The Successful Investor Hotline – Friday, August 8, 2008

Article Excerpt

CANADIAN TIRE CORP. $50.10, Toronto symbol CTC.A, fell 7% this week after it reported second-quarter earnings that fell short of earlier forecasts. In the three months ended June 28, 2008, earnings before inventory writedowns and other one-time items fell 13.9%, to $94.7 million or $1.16 a share from $109.8 million or $1.35 a share a year earlier. Overall revenue grew 6.5%, to $2.45 billion from $2.3 billion, mainly due to strong gains at its finance and gas station operations. Same-store sales at its main retail stores fell 0.5%, as cooler-than-normal spring weather hurt sales of patio furniture and other seasonal merchandise. The company expects earnings to improve in the second half of 2008, partly due to the installation of new credit card scanners that let customers make small purchases without a signature. Speeding up checkout lines should improve customer traffic, and encourage repeat visits. Canadian Tire is a buy. AGRIUM INC. $83.90, Toronto symbol AGU, may have to write off the $280 million…