Alimentation Couche-Tard

Next year, U.S. retailing giant Target Corp. (New York symbol TGT) will open around 130 stores in Canada. That could put pressure on Canadian supermarket operators like Metro. However, Target stores will mainly focus on clothing and household goods, not food. Moreover, Metro has a long history of successfully competing with other big American chains, such as Wal-Mart and Costco. METRO INC. $53 (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 98.9 million; Market cap: $5.2 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.6%; TSINetwork Rating: Average; www.metro.ca) is Canada’s third-largest supermarket operator, after Loblaw and Sobeys. The company has about 600 supermarkets in Quebec and Ontario. It also operates 260 drugstores under the Brunet, The Pharmacy and Drug Basics banners....

ALIMENTATION COUCHE-TARD $48.37 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 179.4 million; Market cap: $8.7 billion; Dividend yield: 0.6%) has reported sharply higher sales and earnings in the latest quarter.

In the three months ended April 29, 2012, Couche-Tard’s earnings per share rose 88.6%, to $0.66 from $0.35 a year earlier (all figures except share price in U.S. dollars).

Sales rose 28.0%, to $6.1 billion from $4.7 billion. The gains came from higher fuel prices, acquisitions and higher merchandise sales. The company gets about 30% of its sales by selling merchandise.

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ALIMENTATION COUCHE-TARD INC., $44.47, symbol ATD.B on Toronto, has succeeded in its bid to buy Norway’s Statoil Fuel & Retail ASA for $2.7 billion. Couche-Tard says that 94.1% of Statoil Fuel’s shareholders have tendered to its offer. It also bought an additional 2.7% stake in Statoil Fuel on the stock market. That raises its total ownership to 96.8%. Under Norwegian law, Couche-Tard can now compel the remaining investors to tender their stock. Statoil Fuel has over 1,700 gas stations in Scandinavia and over 550 in Central and Eastern Europe. The company accounts for over 30% of convenience store sales in Norway, Sweden, Denmark, Latvia and Estonia, and is among the top five in both Lithuania and Poland....

ALIMENTATION COUCHE-TARD INC., $40.67, symbol ATD.B on Toronto, recently agreed to buy Norway’s Statoil Fuel & Retail ASA for $2.8 billion U.S. That’s equal to 39% of Couche-Tard’s $7.3-billion market cap. Statoil Fuel has over 1,700 gas stations in Scandinavia and over 550 in Central and Eastern Europe. The company accounts for over 30% of convenience store sales in Norway, Sweden, Denmark, Latvia and Estonia, and is among the top five in both Lithuania and Poland. Norway’s largest North Sea oil producer, government-controlled Statoil ASA, owns 54% of publicly traded Statoil Fuel....

Over the course of the average month or year, we look at a great many stocks for our newsletters, our Inner Circle and our portfolio management clients. Of all the stocks we look at, we add only a tiny minority to those stocks we might think about recommending. There are several very good reasons why we are so particular with our stock choices....

A positive outlook for the Canadian economy will continue to boost stocks across many industries. Some stocks benefit by supplying different industries, like this heavy equipment supplier we have just added it to the list of growth stocks we cover in our newsletter for aggressive investing, Stock Pickers Digest. WAJAX CORP. (Toronto symbol WJX; www.wajax.ca) sells and services heavy equipment, including cranes and forklifts. It also sells related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions)....

CANADIAN PACIFIC RAILWAY LTD., $76.45, Toronto symbol CP, reported higher-than-expected earnings this week. In the three months ended March 31, 2012, the company’s earnings soared 317.6%, to $142.0 million from $34.0 million a year earlier. Earnings per share rose 310.0%, to $0.82 from $0.20, on more shares outstanding. That beat the consensus estimate of $0.75 a share. Severe winter weather and avalanches in B.C. delayed the company’s trains and depressed the year-earlier results. This was the main reason for the earnings jump....

ALIMENTATION COUCHE-TARD, $39.52, symbol ATD.B on Toronto, has jumped almost 16% since it announced on Wednesday that it is buying Norway’s Statoil Fuel & Retail ASA for $2.8 billion U.S. Couche-Tard is now up over 29% since we made it our #1 stock pick for 2012 in our February issue at $30.55. Statoil Fuel currently has over 1,700 stations in Scandinavia and over 550 in Central and Eastern Europe, including Russia. The company accounts for over 30% of convenience store sales in each of Norway, Sweden, Denmark, Latvia and Estonia, and is in the top five in both Lithuania and Poland....

ALIMENTATION COUCHE-TARD $39.60 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couchetard.com; Shares outstanding: 179.4 million; Market cap: $7.1 billion; Dividend yield: 0.8%) has jumped over $5 since it announced that it is buying Norway’s Statoil Fuel & Retail ASA for $2.8 billion U.S. Couche-Tard is now up 29% since we made it our #1 stock Pick for 2012 in our February issue at $30.55. Statoil, Norway’s largest North Sea oil producer, owns 54% of publicly traded Statoil Fuel....

ALIMENTATION COUCHE-TARD $39.60 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couchetard.com; Shares outstanding: 179.4 million; Market cap: $7.1 billion; Dividend yield: 0.8%) has jumped over $5 since it announced that it is buying Norway’s Statoil Fuel & Retail ASA for $2.8 billion U.S.

Couche-Tard is now up 29% since we made it our #1 stock Pick for 2012 in our February issue at $30.55.

Statoil, Norway’s largest North Sea oil producer, owns 54% of publicly traded Statoil Fuel.

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