alimentation couche-tard
Alimentation Couche-Tard Inc. is a Canadian multinational operator of convenience stores, known for its brands like Couche-Tard and Circle K, with approximately 16,700 stores across various countries.
Read More
Close
You can find a lesson about acquisitions in our latest edition of Wall Street Stock Forecaster, which we sent out last week.
Investors often under-estimate the hidden risk of a corporate strategy of growth-by-acquisition. This strategy is inherently risky. It’s a little like buying new stock issues.
Acquisitions generally come on the market when it’s a good time to sell. That may not be, and often isn’t, a good time to buy. Insiders and managers at the selling company know a lot more than the buyers about the company itself, and its business strengths and weaknesses.
Some takeovers work out well for the buyers, of course. This doesn’t diminish the inherent risk. More important, risk multiplies as takeovers become a habit.
Takeovers are more likely to succeed when the buyer is already a successful company and is under no pressure to buy anything. That way, the buyer can take its time and wait for a truly attractive, low-risk opportunity to come along.
...
Investors often under-estimate the hidden risk of a corporate strategy of growth-by-acquisition. This strategy is inherently risky. It’s a little like buying new stock issues.
Acquisitions generally come on the market when it’s a good time to sell. That may not be, and often isn’t, a good time to buy. Insiders and managers at the selling company know a lot more than the buyers about the company itself, and its business strengths and weaknesses.
Some takeovers work out well for the buyers, of course. This doesn’t diminish the inherent risk. More important, risk multiplies as takeovers become a habit.
Takeovers are more likely to succeed when the buyer is already a successful company and is under no pressure to buy anything. That way, the buyer can take its time and wait for a truly attractive, low-risk opportunity to come along.
...
ALIMENTATION COUCHE-TARD $57.58 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couchetard.com; Shares outstanding: 567.4 million; Market cap: $32.7 billion; Dividend yield: 0.4%) completed its $1.7-billion acquisition of The Pantry in March 2015. The move added 1,500 convenience stores in 13 southern U.S. states, bringing Couche-Tard’s total to 7,848 locations throughout North America. In Europe, the company operates 2,230 stores across Scandinavia (Norway, Sweden and Denmark), Poland, the Baltic states (Estonia, Latvia and Lithuania) and Russia. In the three months ended April 26, 2015, Couche-Tard’s sales fell 18.6%, to $7.29 billion from $8.95 billion a year earlier (all figures except share price in U.S. dollars)....
MANULIFE FINANCIAL $22.70 (Toronto symbol MFC; Shares outstanding: 2.0 billion; Market cap: $45.4 billion; TSINetwork Rating: Above Average; Dividend yield: 3.0%; www.manulife.ca) sells life and other forms of insurance, as well as mutual funds and investment management services.
In the three months ended March 31, 2015, Manulife’s earnings per share gained 5.4%, to $0.39 from $0.37 a year earlier. Revenue rose 25.1%, to $7.83 billion from $6.26 billion.
The company continues to expand in growing Asian markets. Right now, about 40% of its insurance premiums come from that region, which is adding to its revenue and profits.
...
In the three months ended March 31, 2015, Manulife’s earnings per share gained 5.4%, to $0.39 from $0.37 a year earlier. Revenue rose 25.1%, to $7.83 billion from $6.26 billion.
The company continues to expand in growing Asian markets. Right now, about 40% of its insurance premiums come from that region, which is adding to its revenue and profits.
...
CHIPOTLE MEXICAN GRILL, $661.95, symbol CMG on New York, offers higher-quality food and better decor and service than many fast-food chains, and charges slightly higher prices. Under its Food with Integrity initiative, it uses naturally raised meat wherever possible. The company’s all-natural meat comes from animals that are raised humanely, never given antibiotics or hormones and fed a vegetarian diet. In January 2015, the company halted sales of pork items at one-third of its nearly 1,800 U.S. restaurants after learning that a key supplier had failed to meet its pig-housing standards. Under Chipotle’s requirements, pigs must be housed in humane conditions with access to the outdoors, rather than in pens....
Two of Canada’s biggest insurance firms have the assets to forge ahead with expansion and still rank among our best low risk investments.
SUN LIFE FINANCIAL $41.43 (Toronto symbol SLF; Shares outstanding: 612.1 million; Market cap: $25.6 billion; TSINetwork Rating: Above Average; Dividend yield: 3.7%; www.sunlife.ca) sells life insurance, savings, retirement and pension products to individuals and corporations. It has $812.6 billion of assets under management and mainly operates in Canada, the U.S. and the U.K. It’s also expanding in Asia. In the three months ended March 31, 2015, Sun Life’s revenue rose 2.2%, to $3.72 billion from $3.64 billion a year earlier. Earnings per share gained 16.7%, to $0.84 from $0.72. The company continues to expand its asset management business, which generates high profit margins and requires little capital investment. It recently paid $560 million for Bentall Kennedy Group, which manages more than $27 billion in real estate for over 550 institutional clients across the U.S. and Canada....
ALIMENTATION COUCHE-TARD $57.58 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couchetard.com; Shares outstanding: 567.4 million; Market cap: $32.7 billion; Dividend yield: 0.4%) completed its $1.7-billion acquisition of The Pantry in March 2015. The move added 1,500 convenience stores in 13 southern U.S. states, bringing Couche-Tard’s total to 7,848 locations throughout North America.
In Europe, the company operates 2,230 stores across Scandinavia (Norway, Sweden and Denmark), Poland, the Baltic states (Estonia, Latvia and Lithuania) and Russia.
In the three months ended April 26, 2015, Couche-Tard’s sales fell 18.6%, to $7.29 billion from $8.95 billion a year earlier (all figures except share price in U.S. dollars).
...
In Europe, the company operates 2,230 stores across Scandinavia (Norway, Sweden and Denmark), Poland, the Baltic states (Estonia, Latvia and Lithuania) and Russia.
In the three months ended April 26, 2015, Couche-Tard’s sales fell 18.6%, to $7.29 billion from $8.95 billion a year earlier (all figures except share price in U.S. dollars).
...
Alimentation Couche-Tard (symbol ATD.B on Toronto; www.couche-tard.com) 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.
However, per-share earnings jumped 64.5%, to $0.51 from $0.31. Couche-Tard saw higher profit margins on merchandise and fuel, and it continues to save on interest costs as it pays down the debt it took on to acquire Norway’s Statoil Fuel & Retail gas station chain, which it bought for $2.7 billion in June 2012.
...
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.
However, per-share earnings jumped 64.5%, to $0.51 from $0.31. Couche-Tard saw higher profit margins on merchandise and fuel, and it continues to save on interest costs as it pays down the debt it took on to acquire Norway’s Statoil Fuel & Retail gas station chain, which it bought for $2.7 billion in June 2012.
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....
Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.
SolarCity Corp. (symbol SCTY on Nasdaq; www.solarcity.com) provides rooftop solar systems for homeowners, businesses, schools and government agencies in the U.S.
The company creates a customized energy plan for each customer, then sells, finances, engineers, installs, monitors and maintains the system. Customers can “sell” any electricity they don’t use onto the power grid for credits they can use to “buy” electricity at night.
...
SolarCity Corp. (symbol SCTY on Nasdaq; www.solarcity.com) provides rooftop solar systems for homeowners, businesses, schools and government agencies in the U.S.
The company creates a customized energy plan for each customer, then sells, finances, engineers, installs, monitors and maintains the system. Customers can “sell” any electricity they don’t use onto the power grid for credits they can use to “buy” electricity at night.
...