Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, October 1, 2010

Article Excerpt

ALIMENTATION COUCHE-TARD INC., $22.47, symbol ATD.B on Toronto, has dropped its $2-billion U.S. hostile takeover bid for Casey’s General Stores (symbol CASY on Nasdaq). Couche-Tard allowed its tender offer for all of Casey’s outstanding shares to expire at 5:00 p.m. on September 30. Couche-Tard, which was offering $38.50 U.S. a share, decided not to compete with convenience-store chain 7-Eleven’s offer of $40 a share, or $2.1 billion. Casey’s now trades at $41.37, which suggests that investors expect a still higher offer, even though Couche-Tard has dropped out of the bidding. Even without the takeover, we still like Couche-Tard’s growth prospects. Meanwhile, the company has enhanced its reputation as a disciplined bidder that does not overpay for acquisitions. Alimentation Couche-Tard is still a buy. INTERNATIONAL ROAD DYNAMICS INC., $0.65, symbol IRD on Toronto, makes products and systems that manage highway traffic, including automated toll-road and weigh-station systems for trucks. The company’s weigh-in-motion system weighs trucks while they’re moving, rather than at less-efficient roadside…