Topic: How To Invest

Power Growth Investor Hotline – Friday, March 13, 2020

Article Excerpt

NORTH WEST COMPANY, $22.43, is a buy. The retailer (symbol NWC on Toronto) sells food and everyday products and services through 244 stores. Those locations are mainly in northern communities across Canada and Alaska. Through your shares, you also tap the company’s operations in remote regions of Hawaii, the South Pacific and the Caribbean. North West signed a 30-year deal in 2002 with Ottawa-based Giant Tiger for the exclusive right to open and operate Giant Tiger general merchandise stores in Western Canada. It currently operates 44 stores. Giant Tiger has over 200 locations elsewhere in Canada. North West is now selling 34 of its 44 stores back to Giant Tiger for cash of $45 million. In addition—and subject to meeting certain profitability milestones—it will receive another $22.5 million in cash. Of the remaining 12 Giant Tiger locations, North West will (i) retain and operate five stores in northern market locations, (ii) convert one store to a Valu-Lots clearance centre and (iii) close six…

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