acquisition
ALIMENTATION COUCHE-TARD $49.82 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 418.1 million; Market cap: $29.0 billion; Dividend yield: 0.4%) (All amounts except share price and market cap in U.S. dollars) operates 6,314 convenience stores throughout North America. Canadian outlets operate under the Couche-Tard and Mac’s banners, while the U.S. stores mainly use the Circle K brand. In Europe, Couche-Tard operates 2,233 stores across Scandinavia, Poland, the Baltic States (Estonia, Latvia and Lithuania) and Russia. In the three months ended February 1, 2015, Couche-Tard’s sales rose just 1.7%, to $2.33 billion from $2.29 billion a year earlier. The higher U.S. dollar cut the revenue contribution of its European operations....
Agrium continues to benefit from its focus on selling fertilizers and seeds to farmers through its retail chain. These stores help offset its more volatile fertilizer manufacturing business. That gives Agrium an advantage over pure fertilize companies like Potash Corp. (See next article in this issue) The company’s shares have jumped more than 80% in the past five years, but we feel they have more gains ahead, particularly as Agrium boosts its plants’ efficiency. The long-term need for more and better food will also keep spurring the stock. AGRIUM INC. $132 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 144.0 million; Market cap: $19.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 3.0%; TSINetwork Rating: Average; www.agrium.com) gets 75% of its sales and 60% of its earnings from its retail stores, which consist of 1,450 locations in North America, South America and Australia. These outlets sell seed, fertilizer and other products to farmers. (All amounts except share price and market cap in U.S. dollars.)...
NXP Semiconductors NV, $101.31, symbol NXPI on Nasdaq (Shares outstanding: 230.8 million; Market cap: $23.3 billion; www.nxp.com), makes computer chips for a range of products, such as automotive components, wireless infrastructure, lighting, industrial technology, mobile devices and computers.
Netherlands-based NXP is one of the world’s largest suppliers of near-field communication (NFC) chips. This technology lets devices that are close to one another transmit data—including financial transactions—securely.
NXP’s shares have risen lately because Apple is using the company’s chips in its iPhone 6, iPhone 6 Plus and Apple Watch for its new wireless payment system, called Apple Pay.
With this service, users add their credit card information to their phones. They can then use them to pay for goods at any tap-and-pay-enabled cash register and for some online purchases. To prevent fraudulent transactions, the phone will scan the user’s fingerprint to confirm their identity.
NXP’s customers also include Google, Samsung and ZTE Corp., China’s second-biggest maker of telecommunications equipment.
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Netherlands-based NXP is one of the world’s largest suppliers of near-field communication (NFC) chips. This technology lets devices that are close to one another transmit data—including financial transactions—securely.
NXP’s shares have risen lately because Apple is using the company’s chips in its iPhone 6, iPhone 6 Plus and Apple Watch for its new wireless payment system, called Apple Pay.
With this service, users add their credit card information to their phones. They can then use them to pay for goods at any tap-and-pay-enabled cash register and for some online purchases. To prevent fraudulent transactions, the phone will scan the user’s fingerprint to confirm their identity.
NXP’s customers also include Google, Samsung and ZTE Corp., China’s second-biggest maker of telecommunications equipment.
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ALIMENTATION COUCHE-TARD $49.82 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 418.1 million; Market cap: $29.0 billion; Dividend yield: 0.4%) (All amounts except share price and market cap in U.S. dollars) operates 6,314 convenience stores throughout North America. Canadian outlets operate under the Couche-Tard and Mac’s banners, while the U.S. stores mainly use the Circle K brand.
In Europe, Couche-Tard operates 2,233 stores across Scandinavia, Poland, the Baltic States (Estonia, Latvia and Lithuania) and Russia.
In the three months ended February 1, 2015, Couche-Tard’s sales rose just 1.7%, to $2.33 billion from $2.29 billion a year earlier. The higher U.S. dollar cut the revenue contribution of its European operations.
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In Europe, Couche-Tard operates 2,233 stores across Scandinavia, Poland, the Baltic States (Estonia, Latvia and Lithuania) and Russia.
In the three months ended February 1, 2015, Couche-Tard’s sales rose just 1.7%, to $2.33 billion from $2.29 billion a year earlier. The higher U.S. dollar cut the revenue contribution of its European operations.
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SUN LIFE FINANCIAL $39.03 (Toronto symbol SLF; Shares outstanding: 612.7 million; Market cap: $24.0 billion; TSINetwork Rating: Above Average; Dividend yield: 3.7%; www.sunlife.ca) sells life insurance, savings, retirement and pension products to individuals and corporations. Sun Life has $734.4 billion of assets under management. It mainly operates in Canada, the U.S. and the U.K., but it continues to expand in Asia. In 2013, it sold its riskier, money-losing U.S. annuity business, which sells products that guarantee minimum long-term returns even if markets fall....
ALGONQUIN POWER & UTILITIES $9.36 (Toronto symbol AQN; Shares outstanding: 238.9 million; Market cap: $2.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.7%; www.algonquinpower.com) reports that its revenue rose 26.3% in the three months ended December 31, 2014, to $259.3 million from $205.3 million a year earlier. Cash flow per share jumped 22.7%, to $0.27 from $0.22. The gains mostly came from acquisitions, including California’s Park Water for $327 million U.S. in September 2014. Growth by acquisition adds risk. But Algonquin cuts that risk by buying profitable utilities like Park Water. It also ensures that its renewable energy projects sell their power under long-term government-guaranteed contracts....
One of Canada’s last income trusts, Chemtrade Logistics turns industrial waste services and a big acquisition into a high dividend yield.
Every Monday we feature “A Stock to Sell” as our daily post. We give you a full explanation of why we advise against investing in it at this time.
Liquor Stores N.A. Ltd. (symbol LIQ on Toronto; www.liquorstoresna.ca) is North America’s largest private liquor store operator, with 244 outlets. Of that total, 173 are in Alberta, 35 are in B.C., 23 are in Alaska and 13 are in Kentucky.
Liquor Stores’ banners include Liquor Depot, Liquor Barn and Brown Jug.
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Liquor Stores N.A. Ltd. (symbol LIQ on Toronto; www.liquorstoresna.ca) is North America’s largest private liquor store operator, with 244 outlets. Of that total, 173 are in Alberta, 35 are in B.C., 23 are in Alaska and 13 are in Kentucky.
Liquor Stores’ banners include Liquor Depot, Liquor Barn and Brown Jug.
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PLEASE NOTE: Due to the Good Friday holiday, our next Hotline will go out on Thursday, April 2, 2015. CAE INC., $14.86, Toronto symbol CAE, announced this week that it has sold five flight simulators to WestJet and other customers. In all, these orders are worth $70 million, or 3% of CAE’s $2.2 billion of annual revenue. The company has now sold 36 simulators in its 2015 fiscal year, which began April 1, 2014. It sold a record 48 simulators in fiscal 2014....
PLEASE NOTE: Due to the Good Friday holiday, our next Hotline will go out on Thursday, April 2, 2015. ATLANTIC TELE-NETWORK, $70.37, symbol ATNI on Nasdaq, owns wireless and wireline telecom operations in the U.S. Southwest, New England, New York State, Guyana, Bermuda and parts of the Caribbean islands. The company continues to improve its technology and expand its wireless capacity and coverage. That’s paying off as customers use more mobile data for profitable services like music downloads, mobile gaming and e-books....