Q: Some 4% drop on Mar 21 after Q misses estimates.But on Mar 22 it closed at $77.90 - .19 after announcement that former PM ,Mr Harper has joined the board.Is it timely to buy/add? and what is good entry price?.Txs for u usual great services & views
5i Research Answer:
ATD has missed before and has always recovered. This time around, fuel was largely the issue, and demand can be cyclical. We are seeing some signs of consumer slowdown in other companies, but we think ATD remains attractive and its long term record of value creation certainly speaks for itself. We think it can be bought in the $75 area fairly comfortably.