Q: Hi, ATD stock is considered as One of the Best compounders in Canada and is strongly liked at 5i, for a long term ownership. Shares dropped sharply today after soft results, due to lower fuel margins ( It was expected and analysts believe these margins could be volatile and turn any time ) and sequentially lower SSSG, caused by reduced foot traffic ( Inflation impacting purchasing power of consumers ).
Do you believe that above issues could be resolved over time and the sell-off is presenting a buying opportunity to accumulate more shares ?
Thank You
Do you believe that above issues could be resolved over time and the sell-off is presenting a buying opportunity to accumulate more shares ?
Thank You
5i Research Answer:
Yes; it is not the first 'miss' by the company and it has always recovered. Its results do show that it still has some sensitivity to economic conditions but we have no real concern that the long term growth story has been impacted here.